Yugoslav corn scandal#European trial

The Yugoslav corn scandal ({{langx|el|σκάνδαλο του γιουγκοσλαβικού καλαμποκιού}}), also known as Greek maize, was a political corruption scandal in Greece between 1986 and 1990.{{sfn|Koutsoukis|2006|p=131}} A total of 20,000 tons{{cref2|iii|1}} of corn was imported from Yugoslavia in 1986 and falsely labeled as Greek through forged documents. The corn was then exported to other European Economic Community (EEC) countries, allowing the fraudulent claim of $1.5 million in EEC subsidies intended for domestic Greek corn. The state-owned company International Trade Company (ITCO), a government-controlled entity responsible for managing agricultural trade, played a key role in facilitating the fraudulent shipments. After the EEC initiated an investigation, Greek government officials were involved in efforts to cover up the scheme. In 1989, Greece was fined over $3.8 million by the European Court of Justice. Investigations by the Greek Parliament followed, leading to a trial in Greece in 1990, where six individuals, including a deputy minister, were convicted for their involvement.

Crime and cover up

On 8 May 1986, a ship called Alfonsina ({{langx|el|Αλφονσίνα}}){{Cref2|i}} reached the port of Thessaloniki carrying 9,000 tons{{cref2|iii|2}} of corn from Koper in Yugoslavia.{{sfn|San Simera}} However, the documentation stated that the origin of the corn cargo was from Kavala.{{sfn|San Simera}} The company responsible was International Trade Company (ITCO), a state company founded under the PASOK-led government for price control purposes.{{sfn|San Simera}} Its president was Soulis Apostolopoulos.{{sfn|San Simera}} The corn was sold initially to Granomar (a company located in Switzerland) and then to Genk, a Belgian company.{{sfn|San Simera}}{{sfn|Simons, New York Times|1989}} There were the following benefits from this scheme: the Greek state would avoid paying compensatory (import) levies to the EEC,{{sfn|Mixani tou Xronou}} the state would get the benefit of elevated corn prices at $245 a ton instead of $101 a ton for Yugoslav corn,{{sfn|Simons, New York Times|1989}} and, by reporting artificially inflated agricultural productivity, the state would gain access to additional EEC subsidies.{{sfn|San Simera}}{{sfn|TVXS}}

News of the corn sale and, allegedly, complaints reached the EEC in Brussels within days. Subsequently, on 17 August 1986, a European committee arrived in Greece to investigate the state's documentation regarding the transactions.{{sfn|San Simera}} Greek officials, under Deputy Minister of Finance {{ill|Nikos Athanasopoulos|el|Νίκος Αθανασόπουλος}},{{cref2|ii}} assured the committee that the corn was of Greek origin, and forged documents to cover it up.{{sfn|San Simera}} Athanasopoulos also tried to create ways to delay and confuse the inspectors.{{sfn|Simons, New York Times|1989}} At some point, Athanasopoulos complained to Emile Mennens, a Belgian member of the investigation committee:{{sfn|Efimerida ton Syntakton|2016}} "When we the Greeks were building Parthenons, you the barbarians were eating acorns."{{sfn|San Simera}}{{sfn|Mixani tou Xronou}}

European trial

In November 1986, the European Commission pressured the Greek government to provide an explanation for the scandal. However, their request was publicly denied by the Minister of Foreign Affairs, Karolos Papoulias.{{sfn|San Simera}} In 1987, the European Commission imposed a fine on Greece of $2.5 million for the illegal transaction.{{sfn|Simons, New York Times|1989}} The European Commission brought the case before the European Court of Justice, marking the first instance of the 12-nation European Community being defrauded by one of its members.{{sfn|Simons, New York Times|1989}} The particular scandal placed the Greek diplomats and bankers in a difficult position within the European Community, since the culprit was the Greek government rather than an individual; a Greek banker stated, "This really hurt our image".{{sfn|Simons, New York Times|1989}} The Greek government refused to participate in the trial proceedings. European investigations found at least two fraudulent corn shipments; the second shipment was 11,000 tons{{cref2|iii|3}} of corn arriving by train to Thessaloniki and loaded onto a cargo ship to be sold in Belgium as Greek corn.{{sfn|Simons, New York Times|1989}} On 21 September 1989, the trial concluded without the participation of the Greek government, which was fined $3.8 million, which included the initial fine, the expenses of the court, and interest.{{sfn|The Daily Iowan|1989}}{{sfn|Commission v. Greece|1989}}

June elections

PASOK lost in the June 1989 elections due in part to the Koskotas scandal, which implicated PASOK members, and the over 200 scandals reported over the course of PASOK administrations from 1981 to 1989.{{sfn|Dobratz|Whitfield|1992|pp=175-178}} The conservative New Democracy and the united leftist parties under Synaspismos, despite being on opposite ideological sides and having fought against each other in the Greek Civil War (1946–1949), formed {{ill|Cabinet of Tzannis Tzannetakis|el|Κυβέρνηση Τζαννή Τζαννετάκη 1989|lt=a coalition government}} committed to cleansing the state ("Catharsis") of corruption scandals associated with members of PASOK.{{sfn|Close|2014|p=159}}{{sfn|Bourne, The Athenian|1989|p=15}}

Greek trial

Only days after the formation of the coalition government, the Hellenic Parliament commenced procedures to lift the parliamentary immunity of Athanasopoulos. A 12-member committee began an investigation of the alleged fraudulent activity surrounding the importing and export sale of Yugoslav corn.{{sfn|Bourne, The Athenian|1989|p=15}} Witnesses who worked at the ports through which the corn shipment passed, testified that Athanasopoulos gave instructions to not report the corn.{{sfn|Bourne, The Athenian|1989|p=15}} On 23 August 1989, Athanasopoulos confessed during the procedures but argued that the decision for the cover-up was taken after discussions with his colleagues (without naming them) on the grounds of "national duty and obligation".{{sfn|San Simera}}{{sfn|The Athenian|1990}} Specifically, he argued, "responsible ministers had decided to cover up the scandal in the country's interests [...] Otherwise, it would have been disclosed that a state-controlled company was violating Community regulations, which would have been damaging to the country's prestige in the E.C. [European Community]".{{sfn|UPI Aug.|1989}} Akis Tsochatzopoulos, a PASOK deputy, argued that the scandal was due to tense competition between multinational corporations.{{sfn|Mixani tou Xronou}} In January 1990, Athanasopoulos and the company's president, who owned the corn cargo, were remanded in custody.{{sfn|Mixani tou Xronou}}

The Greek courts indicted Athanasopoulos for exporting Yugoslav corn as Greek, so that ITCO, the state-controlled export company, could pocket $1.5 million in European Common Market subsidies.{{sfn|UPI Jul.|1989}} The specific charges were instigation in issuing false certificates, forgery and complicity in forgery.{{sfn|Mixani tou Xronou}} The trial was conducted by a 12-member special court by the Supreme Court of Greece, Areios Pagos.{{sfn|UPI Aug.|1989}} In addition to the "national interests" argument, Athanasopoulos' defense rested on the assertion that the statute of limitations had expired, as well as claims of procedural irregularities.{{sfn|The Athenian|1990}} Thirteen former ministers were witnesses for the defense, and they all used the "national interest" argument.{{sfn|Diamandouros|1994}} Historian Richard Clogg described Athanasopoulos' defense as an effort to portray the defrauding of the EEC as a patriotic duty.{{sfn|Clogg|1994}} However, the court unanimously rejected Athanasopoulos' defense arguments. On 11 August 1990, Athanasopoulos was found guilty and sentenced to three and a half years in prison.{{sfn|Los Angeles Times|1990}}{{sfn|The Athenian|1990}} The president of the company was sentenced to three years and eight months in prison.{{sfn|Mixani tou Xronou}} Four officials tried with him also received prison sentences ranging from 10 to 18 months.{{sfn|Los Angeles Times|1990}}{{sfn|UPI Aug.|1990}}

The trial was broadcast live with state and private television channels focusing on different aspects of the developments inside and outside the courtroom, depending on their political affiliation.{{sfn|Kathimerini Mar.|2003}} In the pro-PASOK press and radio strongly criticized witnesses for the prosecution as traitors to the nation.{{sfn|Diamandouros|1994}} During the trial, PASOK supporters gathered outside the court, and they disapproved of the court's decision by shouting "Shame" ({{langx|el|Αίσχος}}) and chanting the Cretan song Pote Tha Kanei Xasteria.{{sfn|Mixani tou Xronou}}

Aftermath

The decision on Athanasopoulos, according to judicial sources, gave "the green light" to initiate trials against other former PASOK government members, including Prime Minister Andreas Papandreou, for their involvement in the "mega-scandal"{{sfn|Koutsoukis|2003|p=31}} Koskotas scandal and widespread surveillance of political opponents.{{sfn|The Athenian|1990}} Athanasopoulos served nine months,{{sfn|Efimerida ton Syntakton|2016}} at the Korydallos Prison.{{sfn|Kathimerini May|2016}} He was the only politician imprisoned for PASOK's scandals of the late 1980s.{{sfn|Efimerida ton Syntakton|2016}} A few months later, Menios Koutsogiorgas spent three months in jail pending the Koskotas trial but died on the witness stand, and all prison verdicts were redeemable through monetary compensation. Athanasopoulos was re-elected to Parliament following his release, representing Athens B constituency in the 1993 Greek parliamentary election.{{sfn|Kathimerini May|2016}} On 17 January 1994, the newly installed {{ill|Third Cabinet of Andreas Papandreou|el|Κυβέρνηση Ανδρέα Παπανδρέου 1993|lt=PASOK government}} granted a pardon to Athanasopoulos.{{sfn|Mixani tou Xronou}}

Levels of corruption in Greek politics remained consistently high under administrations in the 1986-1997 period, regardless of their political orientation, according to a 2003 study,{{sfn|Koutsoukis|2003|pp=29–30}} which saw this as symptomatic of the institutionalization of corruption in the country and leading to widespread distrust of political parties and the political class in general.{{sfn|Koutsoukis|2003|pp=33–34}} Press stories relating to corruption reached a peak under the conservative {{ill|Cabinet of Konstantinos Mitsotakis|el|Κυβέρνηση Κωνσταντίνου Μητσοτάκη 1990|lt=New Democracy government}} that followed PASOK in 1990–1993, featuring its own "mega-scandal", involving the AGET Heracles cement company, but also many scandals from PASOK era were unfolded in early 1990s.{{sfn|Koutsoukis|2003|pp=29-30}}

The legal case{{sfn|Commission v. Greece|1989}} in the European Court of Justice regarding the scandal became a reference point concerning how the member states settle violations of European law.{{sfn|Buisman|2022|pp=184-185}} Specifically, the court decided that sanctions must be "effective, proportionate and dissuasive," with the European Community determining the minimum and maximum range of the crime penalties, while the member state must transpose the directive from the European Courts by deciding the specific maximum penalty for the crime in their respective jurisdictions.{{sfn|Buisman|2022|pp=184-185}}

Notes

{{Cnote2|i| The name of the ship, according to the following references, was "Alfonsina".{{sfn|Mixani tou Xronou}}{{sfn|San Simera}}{{sfn|Parliament minutes}} In the New York Times article, the name was "Albertina".{{sfn|Simons, New York Times|1989}} }}

{{Cnote2|ii|Nikolaos Athanasopoulos (1923-2015) was an MP with PASOK from 1977 to 1989, Finance minister from 1985 to 1989; then re-elected as a PASOK MP in 1993.{{sfn|Efimerida ton Syntakton|2016}}}}

{{Cnote2|iii|n=3|A total of 20,000 tons was identified: the original 9,000 tons imported by ship and the later discovered 11,000 tons brought in by train.}}

Footnotes

Sources

Legal case

{{cite court

|litigants=Commission v. Greece

|vol=68/88

|reporter=

|opinion=

|pinpoint=

|court=European Court of Justice

|date=21 September 1989

|url=https://curia.europa.eu/juris/showPdf.jsf;jsessionid=2278F4257A8D5EF34462BB7A8D6A1587?text=&docid=95954&pageIndex=0&doclang=EN&mode=lst&dir=&occ=first&part=1&cid=15332058

|ref = {{harvid| Commission v. Greece | 1989 }}

}}

Books

{{Cite book |last=Close |first= David H. | title= Greece since 1945: Politics, Economy and Society | date = 2014 | publisher =Taylor & Francis |language=en |location = London & New York| isbn = 9781317880011| url=https://books.google.com/books?id=4kugBAAAQBAJ }}
{{cite book | last = Koutsoukis |first = Kleomenis S. | chapter = Political corruption in Greece| pages = 24–36 | editor-last = Bull | editor-first =Martin J. |editor-last2= Newell |editor-first2= James L. | title = Corruption in Contemporary Politics | year = 2003 | publisher = Pulgrave Mcmillan | location = New York | isbn =978-1-4039-1999-1 | url = https://books.google.com/books?id=9MqGDAAAQBAJ}}
{{Cite book | last = Koutsoukis |first = Kleomenis S. | chapter = Political scandals and crisis management in Greece, 1821-2001| pages = 123–136 | editor-last=Garrard|editor-first=James |editor-last2=Newell|editor-first2=John|title=Scandals in past and contemporary politics|date=2006 |publisher=Manchester University Press | location = Manchester |language=en |isbn=9780719065514 |url=https://books.google.com/books?id=nDksFA0DYVAC}}

Journals

{{cite journal | last = Buisman | first = S.S. | title = The Future of EU Substantive Criminal Law | journal = European Journal of Crime, Criminal Law and Criminal Justice | volume = 30 | year = 2022 | issue = 2 | pages = 161–187 | doi = 10.1163/15718174-bja10032 | url = https://brill.com/view/journals/eccl/30/2/article-p161_004.xml | doi-access = free }}
{{cite journal | last = Clogg | first = Richard | title = Greek-Bashing | journal = London Review of Books | volume = 16 | issue = 16 | year = 1994 | url = https://www.lrb.co.uk/the-paper/v16/n16/richard-clogg/greek-bashing}}
{{cite journal | last = Diamandouros | first = Nikiforos P. | title = Cultural dualism and political change in post-authoritarian Greece | year = 1994 | journal = Estudios/Working Papers (Centro de Estudios Avanzados en Ciencias Sociales) | article-number = 50 | url = https://cdnrepositorios.march.es/sites/default/files/images/node-53472-document.pdf}}
{{cite journal| last1 =Dobratz| first1= Betty A. |last2=Whitfield|first2=Stefanie |journal=European Sociological Review |volume=8 |issue=2|pages=167–180 |date=1992 |title= Does Scandal Influence Voters' Party Preference? The Case of Greece during the Papandreou Era |url= https://doi.org/10.1093/oxfordjournals.esr.a036630|doi=10.1093/oxfordjournals.esr.a036630 |jstor=522295}}

Newspapers and magazines

{{cite news| first=John |last=Rigos | title = Greek Parliament OKs communist-conservative coalition |publisher = UPI |date =10 July 1989| url=https://www.upi.com/Archives/1989/07/10/Greek-Parliament-OKs-communist-conservative-coalition/8438616046400/| ref ={{harvid|UPI Jul.|1989}} }}
{{cite news| title = Special court to hear Greek 'corn scandal' |publisher = UPI |date =24 August 1989| url=https://www.upi.com/Archives/1989/08/24/Special-court-to-hear-Greek-corn-scandal/8409619934400/| ref ={{harvid|UPI Aug.|1989}} }}
{{cite news| title = Special court chosen for Papandreou's trial |page=7A| agency=AP|newspaper = The Daily Iowan |date =26 September 1989| language = en | url=https://dailyiowan.lib.uiowa.edu/DI/1989/di1989-09-26.pdf | ref ={{harvid|The Daily Iowan|1989}} }}
{{cite magazine|url=https://www.the-athenian.com/downloads/1989/09-September.pdf|magazine=The Athenian

|first=Jeanne |last=Bourne|title=Hanging out the soiled linen: Hercules could divert two rivers to wash out the Augean stables, but the present government has only four 12-member committees and two more months to clean up the political scandals|date=September 1989|pages=15–16

|ref ={{harvid|Bourne, The Athenian|1989}}}}

{{cite news| last=Simons|first=Marlise | title = Case of Seagoing Corruption Embarrasses Greece |newspaper = The New York Times |date =19 November 1989| language = en | url=https://www.nytimes.com/1989/11/19/world/case-of-seagoing-corruption-embarrasses-greece.html| ref ={{harvid|Simons, New York Times|1989}} }}
{{cite news| title = Corn scandal trial opens|pages=8–9 |first1=Sloane|last1=Elliott|first2=Jenny|last2=Paris|newspaper = The Athenian

|date=July 1990| language = en | url=https://www.the-athenian.com/downloads/1990/07-July.pdf| ref ={{harvid|The Athenian|1990}} }}

{{cite news| title = Former Greek Socialist minister sentenced to prison |publisher = UPI |date =11 August 1990 |url=https://www.upi.com/Archives/1990/08/11/Former-Greek-Socialist-minister-sentenced-to-prison/8675650347200/| ref ={{harvid|UPI Aug.|1990}} }}
{{cite news| title = Ex-Greek Socialist Minister Sentenced |newspaper = Los Angeles Times |date =12 August 1990|author=UPI |url=https://www.latimes.com/archives/la-xpm-1990-08-12-mn-1003-story.html| ref ={{harvid|Los Angeles Times|1990}} }}
{{cite news | newspaper = Kathimerini|first=Dimitris |last=Kapranos| title=Greece's tradition of spectacular trials|date=4 March 2003| language=en|url=https://www.ekathimerini.com/news/12581/greece-s-tradition-of-spectacular-trials/ | ref = {{harvid|Kathimerini Mar.|2003}} }}
{{cite news | newspaper = Kathimerini| title=Πέθανε ο πρώην υπουργός και βουλευτής του ΠΑΣΟΚ Νίκος Αθανασόπουλος | trans-title=Former minister and PASOK MP Nikos Athanasopoulos has died|date= 2 May 2016|language =el|url=https://www.kathimerini.gr/society/858391/pethane-o-proin-ypoyrgos-kai-voyleytis-toy-pasok-nikos-athanasopoylos/ | ref = {{harvid|Kathimerini May|2016}} }}
{{cite news | newspaper = Efimerida ton Syntakton| title=Πέθανε ο πρώην υπουργός του ΠΑΣΟΚ, Νικόλαος Αθανασόπουλος | trans-title=Former PASOK minister Nikolaos Athanasopoulos dies |date= 2 May 2016|language =el|url=https://www.efsyn.gr/politiki/67416_pethane-o-proin-ypoyrgos-toy-pasok-nikolaos-athanasopoylos | ref = {{harvid|Efimerida ton Syntakton|2016}} }}

Web and other sources

{{cite news| title = Πρακτικά Βουλής |trans-title=Parliamentary minutes |publisher = Hellenic Parliament |date = 12 July 1989 | language = el | url= https://www.hellenicparliament.gr/UserFiles/a08fc2dd-61a9-4a83-b09a-09f4c564609d/%CE%A3%CE%A5%CE%9D%CE%9F%CE%94%CE%9F%CE%A3%CE%91%60_%CE%A3%CE%A5%CE%9D_%CE%96%60_12_%CE%99%CE%BF%CF%85%CE%BB%CE%AF%CE%BF%CF%85_1989.doc | ref ={{harvid|Parliament minutes}} }}
{{cite news| title = Το σκάνδαλο του γιουγκοσλαβικού καλαμποκιού |trans-title = The Yugoslav corn scandal |publisher = Σαν Σήμερα | language = el | url=https://www.sansimera.gr/articles/809| ref ={{harvid|San Simera}} }}
{{cite news| title = "Όταν εμείς χτίζαμε Παρθενώνες, εσείς τρώγατε βελανίδια". Ποιος υπουργός είπε την περίφημη ατάκα σε αξιωματούχο της ΕΟΚ που διερευνούσε το σκάνδαλο του καλαμποκιού |trans-title="When we were building Parthenons, you were eating acorns." Which minister said the famous line to an EEC official investigating the corn scandal? |publisher = Μηχανή του Χρόνου |date = | language = el | url=https://www.mixanitouxronou.gr/quot-otan-emeis-chtizame-parthenones-eseis-trogate-velanidia-quot-poios-ypoyrgos-eipe-tin-perifimi-ataka-se-axiomatoycho-tis-eok-poy-diereynoyse-to-skandalo-toy-kalampokioy/ | ref ={{harvid|Mixani tou Xronou}} }}
{{cite news| title = Τα σκάνδαλα που ξεκίνησαν το μεγάλο φαγοπότι |trans-title=The scandals that initiated the big feast |publisher = TVXS |date = 11 August 2014 | language = el | url= https://tvxs.gr/istoria/taksidia-sto-xrono/ta-skandala-poy-ksekinisan-megalo-fagopoti/ | ref ={{harvid|TVXS}} }}

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