ATHENS -(Dow Jones)- Greece's finance ministry will launch a special two-part tax probe into the local operations of Siemens, as part of a widening corruption scandal involving the German firm, the government spokesman said Monday.
In a briefing, Spokesman Theodoros Roussopoulos said two special tax audit committees are to be set up -one to audit Siemens tax declarations from 2003 to today; the second to reexamine declarations by the firm from 1997 to 2003.
Earlier this month, an Athen's prosecutor filed charges against unspecified persons as part of an initial investigation into allegations of bribery and money laundering by Siemens that has been dominating the media for weeks.
The initial investigation focussed specifically on a telecom contract awarded by the Greek government to Siemens ahead of the 2004 Olympic Games in Athens, as well as purchases of telecom equipment by Hellenic Telecommunications Organization (OTE) in the late 1990s from the German company.
But recent media reports have suggested that prosecutors are also looking to other potentially tainted contracts awarded to Siemens ranging from defense to railroad-related contracts -and implicating both of Greece's major political parties.
Amid the allegations being investigated is whether either of the two parties -the opposition Socialists, who ruled until 2004, or the New Democracy party, currently in power - received campaign funds from Siemens.
Also being probed is whether senior members of either party benefitted personally from Siemens bribes.
One senior Pasok official has admitted to taking 1 million Deutsche Marks (EUR420,000) from Siemens on behalf of the party just prior to national elections in 2000. While last week, Greek Culture Minister Michalis Liapis - formerly the minister for Transportation and Communications - defended himself against charges that Siemens had paid for a personal trip to Germany.
Earlier Monday, Prime Minister Karamanlis called for a special parliamentary committee to be set up to look into issues relating to campaign and party finance reform. Karamanlis has also promised a special parliamentary probe into the Siemens' scandal once prosecutors finish their investigation.
-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881; alkman.granitsas@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 7th July 2008
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