A number of board members of privatization fund TAIPED are to face criminal charges for causing damages in excess of 580 million euros to the Hellenic state. The charges were brought after a preliminary investigation was carried out in the sale and lease back of 28 state-owned assets, which were sold for 261 million euros in May 2014.
The TAIPED board members will not face breach of trust charges, as the legislation regarding TAIPED clears its board members of all responsibility for actions or omissions approved by the Court of Audit or expert council.
The controversial transactions were signed in May 2014 and concerned the sale contracts and 28 leaseback contracts (for 20 years) between the Hellenic state and Eurobank Properties and Ethniki Pangaia, a subsidiary at the time of the National Bank of Greece. The assets in question were sold for 261 million euros, while the Hellenic state was obligated to pay annual leases – 25.5 million euros were paid out in the first year.
According to the investigation, TAIPED’s expert council failed to propose contract modifications in the best interests of the state and as such, it was estimated that damages worth 580 million euros were caused to the Hellenic state. The TAIPED board members have also been charged with failing to promptly transfer payments to the special state account and withholding over 100,000 euros worth of interest.
