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Greece cracks down on corruption in public sector

by Reuters
Tuesday, 3 August 2010 08:35 GMT

ATHENS, Aug 2 (Reuters) - Greece launched 35 anti-corruption investigations against public employees and institutions on Monday, stepping up a much-publicised crackdown on public sector corruption to sooth popular demands for justice.

The government is keen to show it is responding to calls to punish those responsible for widespread graft and tax evasion as it imposes austerity measures agreed as part of an EU/IMF bailout plan.

In recent months it has threatened to confiscate the property of tax dodging doctors and wealthy owners of island villas. It has investigated hundreds of civil servants who have not filled their tax declarations or have been accused of wrongdoing through an anti-corruption hotline.

The government said on Monday it would look into 10 public institutions including some in the northern city of Thessaloniki, as well as hospitals, checking for possible over-spending and complaints of bad management.

It also said it would investigate 25 of its own employees, including in tax and customs offices, who may be involved in accepting bribes, falsifying tax returns and allowing illegal imports of textiles from China.

"The Finance Ministry is determined to investigate thoroughly its own services ... to restore the credibility of the financial services, which remain focused on the difficult target of increasing revenues," the ministry said in a statement.

Greece must slash its budget deficit to 8.1 percent of GDP this year, but its efforts to increase revenues is lagging behind schedule. In the first half of the year, net revenues of the government's central budget fell short of an annual 13.7 percent increase target, rising by just 7.2 percent.

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