THE government’s decision to appoint the former director of the Electricity Authority (EAC) to look into the £9.2 million missing from the authority’s pension fund yesterday raised eyebrows, despite official assurances that the investigation would be objective.
On Thursday, the Cabinet announced it was appointing an investigating officer to look into the scandal of the missing millions. This prompted the resignations of EAC chairman George Georgiades and his deputy Andreas Louroudjiades, which were yesterday accepted by President Tassos Papadopoulos.
Former EAC director Kikis Ergatoudis has now been tasked with finding out how the £9.2 million went missing from the pension fund after they were entrusted to Suphire Financial Services, along with a power of attorney.
Suphire CEO Yiannos Andronikou was arrested following the discovery of the affair early in March.
However, he was released after a couple of weeks in custody, and no charges have yet been brought.
“I am assuming the conduct of this investigation knowing that I will possibly face numerous difficulties,” Ergatoudis said.
When it was suggested that he would be dealing with people he knew, Ergatoudis said most of the people he had worked with had retired.
Trade and Industry Minister George Lillikas voiced his conviction that the investigation would be objective.
Lillikas stressed that possible wrongdoings would not be tolerated, but said the investigation would not be a witch-hunt.
It was the practice in such cases to appoint someone who knew the ins and outs of the organisation, the minister added.
But that did nothing to allay fears that the case was heading for a whitewash.
Certain circles believe the investigation, which starts before the completion of the police investigation – going on for three months now – will do more to complicate things than unravel them.
Reports in yesterday’s Politis, said that Ergatoudis was friends with one of three EAC officials who signed the power of attorney, which gave Suphire unlimited power over the management of the pension fund.
Concern was also expressed regarding the fact that Ergatoudis was a relative of another big stockbroker who has done business with Andronikou in the past.
The investigation is expected to take two to three months and its objective is to collect all the information regarding the management of the pension fund as well as to look into the actions or omissions of the fund administration, the EAC board and internal audit department.
It will also examine the system and locate gaps or weaknesses in the fund’s management system.
EAC unions have repeatedly demanded the resignation of the whole board, whose term ends in July, as they hold them responsible for failing to monitor the situation closely.
