Antonis Kantas, the former deputy director of the MoD’s procurement office, has admitted to accepting a bribe worth 1.5 million euros from a Greek retired military officer representing companies including the German arms manufacturer Rheinmetall over two procurement programs. He also confessed to receiving a 1.7 million euro bribe for a third defense contract.
Rheinmetall was the tenth-largest European defence contractor in 2011. Formed in 1889, the company played an integral part in the Nazi war effort during World War II relying heavily on conscripted labour. In 1941, Rheinmetall was also involved, via one of its directors who served as a representative of the Wermacht in Athens, in the looting of the biggest Greek arms industry at the time.
In August and September 2013, the offices of of Rheinmetall Defense Electronics and Atlas Elektronik (also involved in the deals) were raided first in Bremen by the German police and then in Athens by the Greek police (Kathimerini, link in greek). The raids were part of an investigation ordered by prosecutors in Greece seeking evidence amid a probe into alleged bribes paid to Greek officials in connection to the scandal over the purchase of 4 submarines by the Greek MoD.
During his marathon 4 day testimony which concluded yesterday, Mr Kantas gave investigating magistrates a wealth of information regarding the numerous bribes alleged to have been paid to him and other MoD officials including the names of people involved in the scandal. He is reported to be cooperating with the investigation with the hope of receiving a more lenient treatment from the courts.
“I accepted so many bribes that I can’t remember all of them,” Antonis Kantas reportedly told investigating magistrates during his preliminary hearing over corrupt practices during his 1996-2002 tenure as the number 2 official in the MoD’s procurement office.
Mr Kantas shed light on how the illegal payments were made revealing that accounts were used in Dresdner and UBS banks to which the arms company representative would transfer the bribes. It is expected that investigations of the bank accounts will reveal more people involved in the scandal. Other banks linked to the web of corruption include Bank Hoffmann (merged with the Credit Suisse Group into Clariden Leu), BNP Paribas and others relating to a number of bribery scandals and money laundering rings.
Mr Kantas is also reported to have described how on one occasion a middleman left a briefcase with 600,000 euros in cash in his office.
According to reports the 71 year old Kantas offered up details of how the procurement process was rigged. To begin with the conditions of each tender would be tailored to the preferred arms supplier so as to eliminate much of the competition. The then director of the procurement office, Giannis Sbokos (whose trial is also pending), would then also ensure that paid-off officials were placed in key positions on the relevant committees evaluating the bidding process.
Mr Kantas also revealed the details of numerous accounts in seven different Swiss banks and has also stated his willingness to provide transaction details. In all Mr Kantas is reported to have named 10 people involved in the bribery scandal (8 company representatives and two financiers) and 10 procurement contracts for which illegal payments were made, at least 3 or 4 of which were new to investigators. Of the ten only one has reached the stage of being investigated by magistrates with the rest, including the infamous submarine contracts still at the stage of preliminary investigations. The bribes paid for these contracts are said to have run into the many millions of euros, with Mr Kantas alone claiming to have received a total of 16 million euros.
Kantas’s testimony will likely trigger further investigatiοns into MoD officials by the two special magistrates handling the case. Aside from the two former ministers in charge of the MoD at the time, Akis Tsochatzopoulos (who is already in prison convicted of money-laundering) and his successor Yannos Papantoniou who is facing criminal charges for tax evasion, the magistrates will also scrutinize members of the MoD evaluation committees, intermediaries, arms industry businessman and other related individuals such as two financiers named by Mr Kantas. The accused is also reported to have named a retired military officer who played a central role in the movement of dirty money.
According to reports Mr Kantas maintained that the officer, known by magistrates to have represented the German companies Rheinmetall and Atlas Elektronik (a subsidiary of Rheinmetall), paid him a 1.5 million euro bribe for the MoD to opt for the German Type 214 submarines and for the Swedish – German made ASRAD vehicle mounted short-range air defense systems. He also admitted to receiving a 1.7 million euro bribe to secure the contract for the supply of Leopard tanks, and other bribes from a Russian weapons manufacturer for a contract to supply Kornet anti-tank missiles and launchers.
It should be noted that the procedures for the procurement of all three of the above weapons systems including contract extensions spanned the tenures of both Mr Tsochatzopoulos and Mr Papantoniou as ministers of defense.
The special magistrates investigating the case, Gabriel Mallis and Ioannis Stavropoulos now face the task of identifying others who accepted payments from the company representatives and businessmen named by Mr Kantas. According to reports some of those involved are already beginning to talk with Panos Efstathiou, named over a scandal involving the ERMIS weapons system, making the first move. “I will talk,” Mr Efstathiou is reported as having said, “I will not be the sacrificial victim.”