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Greece: Relatives of Siemens graft suspect jailed(Associated Press Via Acquire Media NewsEdge) ATHENS, Greece_The wife and eldest daughter of a fugitive former executive at the Greek branch of German industrial giant Siemens AG were jailed Wednesday pending trial for alleged complicity in money laundering, court officials said. An investigating magistrate allowed Christos Karavellas' two other daughters _ who face the same charges _ to walk free on bail of €1 million ($1.42 million) each. Greek authorities have adopted an increasingly tough stance against suspects in the Siemens investigation, which involved alleged corruption in state contracts and has battered public trust in Greece's political system. But Parliament has blocked efforts to extend the probe to politicians, despite widespread Greek media reports that the country's main parties allegedly received payments from Siemens slush funds. Karavellas has been charged with bribery and money laundering over a 1990s state telecoms contract. His arrest was ordered last week after he failed to appear before an investigating magistrate. The former Siemens financial director is believed to be abroad, and the Foreign Ministry has said he tried to transfer a large amount of money to Uruguay to buy property there. His wife and daughters, aged 22, 23 and 26, were arrested Monday and Tuesday after the investigating magistrate handling the case established that they had joint accounts with their father from which suspicious payments were allegedly made. The family lawyer has described the arrests as irrational. A total of six former Siemens executives and one former official with Greece's largest telecom company, OTE, have been charged in the scandal. Two of the former Siemens officials have been jailed pending trial. An international arrest warrant has been issued against a third, Michalis Christoforakos, who is believed to be in Germany. Officials are also investigating alleged corruption in deals between Siemens and the Greek state involving security systems for the 2004 Athens Olympics. Siemens is being investigated in several countries over allegations of bribery and corruption in its communications group. It has said it is cooperating in the investigations, and has introduced changes to make its corporate structure leaner and more transparent. (c) 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |