BUSTED - IKA governor Could Be Facing Fraud Charges

Social Insurance Fund (IKA) governor Rovertos Spyropoulos (a high ranking official from PASOK) could be possibly facing charges for breaching of faith and aggravated fraud against the state, according to a proposal tabled to a Judicial Council by the prosecutor investigating the case of a supermarket chain with million-euro debts to the social insurance organisation.

The case file, according to a report from ANA-MPA, concerns a decision by Spyropoulos to lift the confiscation order of bank accounts that belonged to "Arvanitidis" supermarket chain even though the company owed to IKA 18 million euros in contributions.

The report notes that the prosecutor believes that the two company owners should be charged with moral complicity.

The decision made by Spyropoulos to lift the confiscation of the bank accounts in question, adds the same report, caused damages to the social insurance organization, considering that within a few days after the decision, large amounts, that could have been impounded to repay the debt, disappeared from the company's bank accounts, the prosecutor underlined.

On his part, Spyropoulos has denied all charges, and maintains that all his actions were legal (but then again we have heard this before from many PASOK officials). He has also said that he asked that the confiscation order be lifted to give time to the company to settle its outstanding debts and backpay to its employees, enter a settlement with IKA and avoid bankruptcy.