Kickback scandal reaches Germany

The issue has been gathering momentum in Germany where companies that are implicated by testimonies in Greece are rushing to distance themselves from any involvement. Local judicial authorities, however, have started investigating the issue.

Süddeutsche Zeitung, extensively covered the issue of Kantas' deposition and the initiation of inquiries by Bremen prosecutors in a report entitled “Good relations,” which also presents the ways kickbacks were collected for procurements of tanks, submarines, and other weapon systems.

According ton the newspaper, evidence in the hands of Bremen prosecution bears Kantas' deposition out. Judicial authorities have been scrutinizing German firms Rheinmetall and Atlas.

The newspaper also maintains that 16 million euros were given to Greek officials for the modernization of Type 209 Poseidon-class submarines adding that Bremen prosecutors are aware of the circuit followed to transfer the money. It also asserts that kickbacks were also involved in the contracts for the Asrad close air defense system.

Süddeutsche Zeitung notes that Kantas has accepted that he received money through a “go-between from Rheinmetall and Atlas, which Bremen prosecutors believes is the money courier.” Rheinmetall maintains it has no idea about any bribes, and has never given any orders towards such end.

The report places special emphasis on the purchase of 170 αρμάτων μάχης Leopard 2A6 Hel from German firm Krauss-Maffei Wegmann (KMW), for which Kantas says he received a total of 1.7 million euros. KMW also maintains that nothing untoward happened and the deal was completely transparent.

That deal was the only purchase after extensive field trials that was ever made by the Hellenic armed forces, which raises other questions concerning how Greek could request bribes from the trial winner, and why the company would pay.

For German firms, it's not not just German laws that foresee stiff penalties for corrupt practices, but also the side-effects of the scandal at a time of waning sales due to the crisis.The newspaper notes that the statute of limitations has not been reached since paynments on some programs are still pending.