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Prosecutor Suggests Greek Social Security Fund Chief to Face Trial


The indictment before the three-member Felonies Court of Appeals of Greek Social Security Fund (IKA) chief Rovertos Spyropoulos on charges of infidelity, called with his suggestion a Greek prosecutor.

The case concerns the lifting of the accounts’ confiscation decision imposed on supermarket chain “Arvanitidis,” which had some 18 million euros of debts to IKA. The prosecution motion also suggested the trial referral of the company’s two owners, with charges of moral instigation. The prosecutor suggested that Spyropoulos’ decision caused financial damage to the Fund. According to the prosecutor’s indictment, the company, based in northern Greece, on September 25, 2013, owed an amount of around 18 million euros to IKA, for the collection of which the local IKA office proceeded to levy actions against the company’s legal representative, providing him a 15-day period so that after the payment of a portion of the total amount, the company would benefit from debt restructuring.

The IKA chief is accused that, without a previous formal application filed by the company, ordered the local IKA office to temporary lift the seizure so that the company would proceed with its staff payments, debt reconstruction etc. The head of the local IKA office rejected Spyropoulos’ request and informed his superiors that the seizure lifting he ordered is not based on any official provision, while he also informed him that the company was asked to settle the debt and it did not.

On October 17, 2013, according to the indictment, Spyropoulos sent a second letter, calling again for the seizure lifting until November 15, 2013. The local IKA head complied with the order but once again expressed his legal reservations. After the seizure lifting, the company did not settle its debt and on November 18, a new foreclosure process was ordered. In the meantime, though, hundreds of thousands of euros were deposited in the company’s bank accounts but its debt to IKA was still not settled, while the owner withdrew some 1.35 million euros.

Spyropoulos denies the accusations, arguing that all his actions were lawful.

IKA is the largest Social Security Fund in Greece. It covers 5,530,000 workers and employees and provides 830,000 Greeks with retirement pension.

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