Financial crime prosecutors resign citing interference

Two senior public prosecutors for financial crime resigned on Wednesday citing political interference in their duties.   Grigoris Peponis, who heads the financial unit at the public prosecutor’s office, and his deputy, Spyros Mouzakitis, submitted their resignations in writing, calling on the Supreme Judicial Council, which is comprised of Supreme Court judges, to replace them.   According to news site Newsbomb.gr, the officials said: “We don’t accept being public prosecutors under prohibition and under dictation.”   The two prosecutors also complained that they were not provided with the resources necessary to carry out their function quickly and efficiently.   Peponis has played a prominent role in the recent crackdown on tax evasion.   Only a fortnight ago, Finance Minister Evangelos Venizelos requested him to probe charges that tax inspectors pocket 40 percent of every fine that results from their audit.   In recent weeks, he has headed Operation Handcuffs, which is resulted in the arrest and charging of a number of prominent businessmen for tax evasion.   In November, he secured a copy of a list of the country's biggest tax evaders, after he threatened to investigate finance ministry officials who were refusing to hand it over.   In September, Peponis also ordered an investigation into claims that the country's state deficit for 2009 was intentionally inflated, as alleged by a former board member of the Hellenic Statistical Authority (Elstat), Zoi Georganta.   Peponis was also heading the case against 29 people, including navy officers and former defence ministry officials, in connection to an order by the government for German submarines a decade ago that involves the Ferrostaal company.   In 2007, he investigated the investment by social security funds in high-risk structured bonds, which costs the funds several million euros in losses and kickbacks to fund officials and intermediaries.