# Yugoslav corn scandal

The Yugoslav corn scandal was a Greek corruption scandal in 1986–1990. A large quantity of corn was imported from Yugoslavia and subsequently exported as 'Greek corn' with the assistance of several public officials and two government deputies, under the government of the socialist Prime Minister Andreas Papandreou, by providing the fabricated documentation. The scheme resulted in taking illegally $1.5 million in European Economic Community (EEC) subsidies. Government officials tried to cover up once investigations commenced by the EEC. Greece was fined over $3.8 million by the European Court of Justice. In 1990, a Greek special court tried and convicted those involved in the scheme.

## Crime & cover up

On 8 May 1986, a ship called "Alfonsina" (Greek: Αλφονσίνα) reached the port of Thessaloniki carrying 9000 tons of corn from Koper of Yugoslavia. However, the documentation stated that the origin of the corn cargo was from Kavala. The company responsible was International Company International Commerce (ITCO), a state company founded under Andreas Papandreou's political party, PASOK, for price control purposes. Its president was Soulis Apostolopoulos. The corn was sold initially to Granomar (a company located in Switzerland) and then to a Belgian company.
There were formal complaints in Brussels, and a European committee arrived in Greece to investigate the state documentation regarding the transactions on 17 August 1986. However, Greek officials, under Deputy Minister of Finance Nikos Athanasopoulos [el], assured the committee that the corn was of Greek origin while at the same time forged documents to cover up. Athanasopoulos complained with an inflammatory remark to Emile Mennens, a Belgian member of the investigation committee: "When we the Greeks were building Parthenons, you the barbarians were eating acorns."

## European trial

In November 1986, the European Commission pressured the Greek government to provide an explanation for the scandal. However, the Ministry of Foreign Affairs and the President of Greece refused to reply. 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. Unlike other scandals rocking Papandreou's government, the particular scandal was an embarrassment for Greek diplomats and bankers since the culprit was the Greek government rather than an individual; a Greek banker stated, "This really hurt our image." The Greek government refused to participate in the trial proceedings. European investigations found at least two fraudulent corn shipments. In 1988, the Deputy Prime Minister explained in response to the rising frustration of the Greek public: "Though we may have cheated, we did so for your benefit." On 9 May 1989, the trial concluded without the participation of the Greek government, which was fined $3.8 million.

## Greek trial

In the June 1989 elections, PASOK lost the elections due to numerous scandals involving PASOK members. The conservatives and communists, despite being on ideological opposite sides and having fought against each other in the Greek civil war, formed a government to cleanse the state ("Catharsis") from PASOK's corruption. Only days after the formation of the collaborative government, the Hellenic Parliament commenced procedures to lift the parliamentary immunity of Athanasopoulos. 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." 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]" Akis Tsochatzopoulos, a PASOK deputy, argued that the scandal was due to tense competition between multinational corporations. In January 1990, Athanasopoulos and the company's president, who owned the corn cargo, were remanded in custody.
The Greek courts indicted Athanasopoulos for exporting Yugoslav corn as Greek, and a state-controlled export company pocketed $1.5 million in European Common Market subsidies. The trial was conducted by a 12-member special court by the Supreme Court of Greece, Areios Pagos. In addition to the national interests argument, Athanasopoulos' defense was based on the fact that the offenses had been written off, and there were irregularities in the procedures. Thirteen former ministers were witnesses for the defense, and they all used the "national interest" argument. 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. The president of the company was sentenced to three years and eight months in prison. Four officials tried with him also received prison sentences ranging from 10 to 18 months.
The trial was broadcast live with state and private television channels focusing on development inside and outside the courtroom, depending on their political affiliation. In the pro-PASOK press and radio reviled witnesses for the prosecution as traitors to the nation. During the trial, PASOK supporters gathered outside the court, and they disapproved of the court's decision by shouting "Shame" (Greek: Αίσχος) and chanting, "When will it clear up? (Greek: Πότε θα κάνει ξαστεριά).

## Aftermath

The judicial decision on Athanasopoulos gave the green light to initiate trials against other former PASOK government members, including Andreas Papandreou, in their involvement in the Koskotas scandal and widespread surveillance of political opponents. Athanasopoulos served nine months, at the Korydallos Prison. He was the only politician imprisoned for PASOK's scandals of the late 1980s. 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. After his release, Athanasopoulos was elected to Parliament in the election of 1993, representing Athens B constituency. On 17 January 1994, the PASOK government granted a pardon to Athanasopoulos.

## Footnotes

* ↑ Koutsoukis 2006, p. 131.
* 1 2 3 4 5 6 7 8 9 San Simera.
* 1 2 3 Efimerida ton Syntakton & May 2016.
* 1 2 3 4 5 6 Mixani tou Xronou.
* 1 2 3 The New York Times & Nov. 1989.
* ↑ Koutsoukis 2003, pp. 29 & 36.
* ↑ The Daily Iowan & Sep. 1989.
* ↑ Close 2014, p. 159.
* 1 2 3 4 The Athenian & Jul. 1990.
* 1 2 UPI & Aug. 1989.
* ↑ UPI & Jul. 1989.
* 1 2 Diamandouros 1994.
* 1 2 Los Angeles Times & Aug. 1990.
* ↑ UPI & Aug. 1990.
* ↑ Kathimerini & Mar. 2003.
* 1 2 Kathimerini & May 2016.

## Sources
### Book

* Bull, Martin J.; Newell, James L., eds. (2003). Corruption in Contemporary Politics. New York: Pulgrave Mcmillan. ISBN 978-1-4039-1999-1.
** Koutsoukis, Kleomenis S. "Political corruption in Greece". In Bull & Newell (2003), pp. 24-36.
* Garrard, James; Newell, John, eds. (2006). Scandals in past and contemporary politics. Manchester: Manchester University Press. ISBN 9780719065514.
** Koutsoukis, Kleomenis S. "Political scandals and crisis management in Greece, 1821-2001". In Garrard & Newell (2006), pp. 123-136.
* Close, David H. (2014). Greece since 1945: Politics, Economy and Society. London & New York: Taylor & Francis. ISBN 9781317880011.

### Journal

* Diamandouros, Nikiforos P. (1994). "Cultural dualism and political change in postauthoritarian Greece" (PDF). Estudios/Working Papers (Centro de Estudios Avanzados en Ciencias Sociales) 50.

### Newspapers & magazines

* John Rigos (10 July 1989). "Greek Parliament OKs communist-conservative coalition". UPI.
* "Special court to hear Greek 'corn scandal'". UPI. 24 August 1989.
* "Special court chosen for Papandreou's trial" (PDF). The Daily Iownan. 26 September 1989.
* Marlise Simons (19 November 1989). "Case of Seagoing Corruption Embarrasses Greece". The New York Times.
* "Corn scandal trial opens" (PDF). The Athenian. July 1990.
* "Former Greek Socialist minister sentenced to prison". UPI. 11 August 1990.
* "Ex-Greek Socialist Minister Sentenced". Los Angeles Times. 12 August 1990.
* Dimitris Kapranos (4 March 2003). "Greece's tradition of spectacular trials". Kathimerini.
* "Πέθανε ο πρώην υπουργός και βουλευτής του ΠΑΣΟΚ Νίκος Αθανασόπουλος". Kathimerini (in Greek). 2 May 2016.
* "Πέθανε ο πρώην υπουργός του ΠΑΣΟΚ, Νικόλαος Αθανασόπουλος". Efimerida ton Syntakton (in Greek). 2 May 2016.

### Web and other sources

* "Το σκάνδαλο του γιουγκοσλαβικού καλαμποκιού" (in Greek). San Simera.
* ""Όταν εμείς χτίζαμε Παρθενώνες, εσείς τρώγατε βελανίδια". Ποιος υπουργός είπε την περίφημη ατάκα σε αξιωματούχο της ΕΟΚ που διερευνούσε το σκάνδαλο του καλαμποκιού" (in Greek). Μηχανή του Χρόνου.