More Arrests: Greece Makes Progress on Arms Deal Corruption

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http://www.spiegel.de/international/europe/greece-arrests-two-suspects-in-submarine-bribery-case-a-944446.html



A submarine built for Portugal being christened in 2009 at the HDW shipyard in Kiel.

More Arrests: Greece Makes Progress on Arms Deal Corruption
January 20, 2014 – 12:34 PM

The case involving German firms that allegedly payed bribes to Greek officials in exchange for arms deals is not new. Years ago, prosecutors in the northern German city of Kiel launched an investigation into top managers at the Kiel-based HDW shipyard on suspicion of corruption. But a lack of cooperation by Greek authorities led to the investigation being abandoned.

Recently, though, with Greece pursuing past corruption with more energy than ever before, progress has been rapid. And last week, two more suspects were taken into custody on suspicion of having received bribes from German arms companies or transferred bribe money onward in connection with a sale of German-made 214-Class submarines in the beginning of the last decade. The deal was worth €1.14 billion.

Sotiris E. is suspected of having received €20 million in connection with that deal. E. was the head of the struggling, state-owned HSY shipyard in Athens at the time. One of the provisions of the deal was that HDW would take over HSY. SPIEGEL has learned that Greek investigators believe the German submarine consortium, which included Essen-based Ferrostaal and HDW shipyards, gave that money to E. in the form of a bribe payment to ensure he wouldn't stand in the way of the plan. E. is thought to have received the money via shell companies in the Marshall Islands and Hong Kong as well as through his lawyer. He denies the accusations, saying that the payments were legitimate commission fees.

The second arrest made last week was that of Yannis B., who is thought to have cashed in €3.5 million on the same submarine deal. B., who is a close associate of former Greek Defense Minister Akis Tsochatzopoulos, has likewise denied any involvement in corruption.