Another ex-minister, Papantoniou, faces probe for defence contracts

The investigation concerns the offset benefits contracts accompanying the main contract for the purchase of ‘Leopard’ tanks

Former finance and defence minister Yiannos Papantoniou is being accused of corruption over the purchase of German-made “Leopard” tanks by the Greek armed forces more than a decade ago. The chief prosecutor for corruption, Eleni Raikou, on Friday forwarded the case, which has resulted in criminal charges against 13 individuals.

Papantoniou succeeded the currently imprisoned former socialist PASOK minister Akis Tsohatzopoulos at the defence ministry. Investigations of possible criminal liability relate to the period from October 2001 through to March 2004 and concern an offset benefits contract signed alongside the main contract for the German-made tanks.

Charges were pressed against 12 state officials involved in the contracts as well as a businessman, Thomas Liakonakos, who represented the tanks’ manufacturer, and who is also facing charges in another alleged procurements scandal.

Most of the investigation concerns an inquiry into whether the money from implementing the offset benefits was used to subsidize the domestic defence industry. The findings of the investigation found that roughly 25 million euros was used by the businessman representing the manufacturer to participate in share capital increases of firms owned by his group of businesses.

The case has now been assigned to an examining magistrate for corruption cases.