A profit, which translates into lost revenue for the public, of at least 400 thousand euros was obtained by those involved in the case of corruption – bribery in Public Real Estate Company (ETAD) according to the first estimates of the Police.
In envelopes and bags, in public view, the donations
Based on what has been revealed so far by the Police, two ETAD employees responsible for the short-term rental of State-owned properties were operating illegally, obtaining financial benefits in cases of property rental (irregular lease extensions, etc.) while for the years 2022 and 2023 events were identified, for which no invoices were issued and no revenue was collected.
A characteristic of their work is receiving sums of money from tenants in public places in envelopes and bags.
The fact that something was not right was diagnosed internally by the previous management of ETAD led by Panagiotis Balomones, in the position of Authorized Advisor and interim director general, but without publicity or legal action.
The employee’s complaint about beating
However, a complaint was made by a 47-year-old ETAD employee, who works as a local accommodation manager, according to which he had been attacked by an unknown assailant in the backyard of his home in early June 2024, resulting in his injury. The patient had dealt with rental cases for which cases of illegality had been brought.
After the preliminary investigation by the Racketeering Prosecution Department, it was found that the case involved two employees and one already incarcerated in the country’s prison, and charges were filed against them for the crimes of dangerous bodily harm, the weapons law and bribery of an employee.
As part of the investigation, data and information collected were evaluated and analyzed, from which the unfair form of action in terms of short-term rental of public properties emerged.
An internal audit was carried out, which identified insufficient management of short-term rentals and an inability to fully implement the Public Tender.
Checks already in 2023
ETAD itself claims to have initiated an audit by certified external auditors and legal firms with the aim of identifying and mainly documenting cases of distortions and possible illegal acts from June 2023 onwards.
The company that manages thousands of public properties did not comment on the results of the audit, while the police statement makes it clear that the case was revealed when the employee reported the assault he received, which he associated with the corruption he suffered. reported.
After all, it is common practice for public organizations, even when their administrations encounter cases of corruption, to try to avoid publicity, and sometimes the perpetrators continue to be paid as normal.
Lost earnings
At the same time, due to the poor management of the properties, a thorough inspection was ordered by the Police and carried out by a Private Company that, among other things, also provides auditing services. The analysis of the files and the general inspection resulted in a list of 34 events in total, for which it was estimated that there were lost profits, amounting to 402,500 euros.
During searches of homes and other locations, 7,500 euros were found and confiscated, among others, a multitude of tax documents, copies of private contracts, mailing guides, invoices, etc., three Private Contracts for the Concession of space and lease, 6 documents for approval of short-term space concession, 3 of which did not have a protocol number and closed-circuit security cameras.
“Without commitment”
On the government’s part, the Minister of National Economy and Finance, Kostis Hatzidakis, in his related statement, stated that “what is made public today is due to the systematic efforts of the current and previous management of ETAD to bring some order to the company”, adding that there will be “no compromise with phenomena such as those revealed today. It is our conscientious duty.”
According to its management (Iro Hatzigeorgiou has been appointed general administrator), ETAD has filed a complaint against all those responsible in order to verify possible criminal liability for cases of embezzlement, disloyalty, extortion and fraud and is in close cooperation with the competent authorities.