According to the authorities approximately 200 million euros worth of loans were issued by the bank during the period in question to companies controlled by certain well-connected businessmen without guarantees, none of which have been repaid. The case is also linked to another financial scandal involving another 300 million worth of losses due to bad loans made to a property developer. The accused face charges including fraud, money laundering and complicity in malpractice.
Twenty five people face charges over the Hellenic Postbank case with arrest warrants issued for fifteen individuals by anti-corruption prosecutor Eleni Raikou and anti-corruption magistrate Giorgos Andreadis. Among them are former presidents of the Hellenic Postbank, former members of the bank’s board of directors, members of the committee authorizing the loans as well as business figures who received the loans.
Already reportedly in custody are former Hellenic Postbank deputy managing directors Marios Varotsis and Charalambos Giangoudis and former chairman Kleon Papadopoulos.
Facing charges is also well-known magnate Dimitris Contominas, 74, the owner of Alpha TV and chairman of Demco Insurance. Mr Contominas denies wrongdoing, issuing a statement saying, “Demco's loans from Hellenic Postbank, unlike other huge non-operating loans of well-known entrepreneurs, are totally covered with guarantees from my personal assets.” Contominas avoided arrest as he had been admitted at a private clinic. There are conflicting reports as to whether a forensic physician visited him or not to check his health condition, but the end result is the authorities demanded the businessman is transferred to a public hospital.
Also facing arrest is Angelos Filippidis, chairman at the bank from 2007 to 2009 who denied the charges saying to SKAI TV, “All the loans were issued with unanimous decisions by the board and all the procedures were respected. If I could turn back time, I would issue them again today.”
The warrants were issued on the basis of two reports: one from the Bank of Greece which identified the business figures who had received loans with no or insufficient collateral, and one from the Authority responsible for combating money laundering.
In an example of apparent corruption the latter report refers to two bond loan agreements made by the Hellenic Postbank on the 23rd of March and 12th of August, 2009 worth 7 and 10 million euros respectively, with a company controlled by a well-known businessman and his wife. The bank then went on to fund another three companies controlled by the couple with another 2,385,000 euros. This case alone caused the bank 20 million euros in losses.