Following an investigation carried out by prosecutor Popi Papandreou, the Defense Ministry agreed to purchase the system for roughly 72 million euros (excluding value-added tax). However, press reports in Athens claim that it never accepted delivery of the software and hardware, despite providing the company with a 35-million-Euro advance.
Charges of defrauding the Greek state, and serving as accomplices, were apparently leveled against two ex-general secretaries who served at the Defense Ministry, an former army chief, the owner of the company involved, the company's managing director and about 14 members of the armed forces who served on committees that approved the deal.
A magistrate dealing with corruption issues is now expected to take over the case.
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