According to the article, Katrougalos worked as a lawyer for a private firm before being elected in the last national elections. During this period, and according to the report, he signed quite a few private agreements with public servants who had either been laid off or suspended by the previous conservative government. The report reveals that these agreements stipulated that he would receive a 12 percent commission of the gross amount which would be awarded to them by courts if they won the case if they got their jobs back.
(Kind of scandalous, and ironic, since today -and from his ministerial post- he is responsible for rehiring them! After all he would absorb 12 percent from their compensation – which might amount to three years’ wages – as commission for reappointing them.).
The scandal - The evidence so far
The article in To Vima alleges that Katrougalos signed private contracts with hundreds of civil servants, who were made redundant, and took 12 percent from their compensation – which might amount to three years’ wages – as commission for reappointing them.
The law provides 25 percent of the salary as compensation for every civil servant who is laid off and then reappointed, for the whole period of redundancy. The report in To Vima stresses that Katrougalos has made such contracts with at least 300 laid off government employees. The contracts have a clause whereby 12 percent of this compensation, when received, goes to Katrougalos as attorney fees.
Most importantly, and certainly something that is raising eyebrows, the same article in To Vima also notes that these private contracts were signed after Katrougalos became Alternate minister in charge of administrative reform; hence of employees who were made redundant or are in a standby mode.
Another point that certainly needs clarification, and which was revealed by "To Vima" is that contracts were lodged with tax and attorney offices on January 26th and 27th, 2015 (that is right after SYRIZA won the national elections.)
According to the Greek newspaper on these two dates, scores of private contracts were submitted to tax offices and the Bar by public sector employees who were either laid off or put in a standby mode. This was done to officially certify the contracts, whereby Katrougalos and his law firm were hired to protect the interests of these employees.
Through the contract, a public sector employee authorises the law firm to make a claim against the state. If this claim is satisfied, then the employee can receive the margin between his/her former public sector remuneration and his/her income after the employee was laid off. Moreover, the employee can also cover the cost of litigation. An upfront amount of 200 Euros is also paid.
When confronted with the case on MEGA Tv on Sunday morning, Katrougalos strongly denied any wrong doing, and said that he resigned from the legal firm he worked for after he was elected as MEP and since then has not taken up any similar case, nor has he drafted any similar agreements. When asked to explain the fees, the Minister said that the legal fees were only paid when the trial took place in civil courts and other lawyers were involved, which would only be paid if the ruling was favourable.
Katrougalos described the allegations as slanderous and provocative at a press conference that was specifically held to respond to the allegations.
"Had I signed the contracts, I should have left the country and committed suicide rather than just hand in my resignation." Katrougalos also said he would demand 10,000 Euros as compensation from To Vima.Myths and Truths That Need Clarification
“My political and legal activity always had the same aim, to defend rights and the Constitution. In the past five years, I handled many cases related to the memorandum, most of them with little or no legal fees: port privatizations, the PSI robbery, the illegal appointment of the administration in privatization agency HRADF, the civil mobilization of employees in the metro and many others, among which the civil servants who were suspended,” Katrougalos said.
It is true that when Katrougalos was appointed as Minister, he automatically debarred as a lawyer and even shut down his law firm on February 27th, nonetheless the article in the To Vima newspaper says that he took the pains to warrant his rights so that he could return to his law practice following his run as Minister.
This is not just here say. To Vima notes that the last clause of the private contracts provides that if the Ap. Papakonstantinou - G. Katrougalos - N. Hlepas & Associates Law Firm and Partners shuts down, the powers stemming from those contracts transfer to G. Katrougalos.
Concerning a contract signed on January 27th (and which was published by the paper), Katrougalos quickly replied that it does not refer to a reappointment, but instead arranges a small margin fee. Also, he said that it was signed by his partner rather than by himself. When asked why he signed a contract implying a claim against the Greek state in a period when he already held a position in the government, Katrougalos scandalously replied that it was just a minor case, which had been dealt with by his associate before he himself had even realised that he would be a government minister. He then added that even if he had known about it, he would have still authorised the contracts.
Government stands behind Katrougalos
Press reports say that Prime Minister Alexis Tsipras has already spoken with Katrougalos and asked him for explanations and the minister maintained that the claims revealed by To Vima were false. Katrougalos must of convinced the PM because several reports in the Greek press noted that his resignation is not even being considered. As such, it issued a statement, noting its support for Katrougalos and urged the opposition to withdraw their declarations against him.
Greek opposition calls for his resignation
As expected, the most opposition parties began demanding his immediate resignation. The press secretary of the main opposition New Democracy party,Costas Karagounis, said that if the story is credible then Katrougalos must immediately resign.
"At the end of the day, ‘hope’ has proven to be a business transaction with a 12 percent price tag. Although underwritten by the taxpayer, the minister is the one who will cash in on it. Instead of appointing young and capable people, we will reappoint our own guys with compensations. Now everybody knows what the implications are of the radical left running the country for the first time."Similar protests were expressed by the "Potami" party as well as by PASOK.
German press slams SYRIZA for protecting Katrougalos
The online edition of German newspaper Bild rushed to comment on the Greek affairs in an article titled “A corruption scandal in Tsipras’ incorruptible government.” Dripping with sarcasm, the article reports all the details of the case and states that the new developments are likely to keep Alexis Tsipras’s government very busy in the following days.
Sources: MEGA Tv, ANT1 tv, YouTube, To Vima, ANA-MPA, Bild
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