Spotlight: Greek Leftist govn't faces "scandal" over minister's previous legal work

Greece's radical left government faced the first major "scandal" this weekend after assuming power two months ago over the previous legal work of Administrative Reform Minister Yorgos Katrougalos, which was challenged with a conflict of interest, according to local media.

Greek newspaper Vima said a string of contracts raised serious ethical and political issues, in which Katrougalos' law firm signed with laid-off civil servants, up to a few hours before being sworn in as minister on January 27, to represent them against the Greek state as they sought rehiring.

The paper said as a lawyer Katrougalos would receive a 12-percent commission of their compensations, which would amount to up to three years' wages, even if their reinstatement came through a ministerial decision instead of through courts.

In the context of austerity and reform measures, Katrougalos, minister of administrative reform, has pledged to rehire about 3,500 civil servants dismissed by the previous government.

The minister's and the prime minister's office dismissed the report as a "defamation attempt aiming to undermine the government's efforts to bring change to Greece."

In a statement to media Katrougalos said that he has not worked as a lawyer since June 2014 after his election to the European parliament.

He acknowledged that in the past he had offered service to about 20 laid-off civil servants, and argued that thanks to his work as a lawyer Prime Minister Alexis Tsipras appointed him to his new post.

However, Katrougalos stressed that after taking office he closed his legal office.

The minister said the copy of a contract the newspaper printed was doctored, which was concerned with a civil servant who was never dismissed but sought his legal advice over salary cuts implemented in recent years.

Katrougalos underlined that the legal fees he had received in such cases in recent years were little. In particular, in the cases of civil servants who seek reemployment, he only got paid when the trial took place in civil courts and the rulings were favorable.

Opposition parties called on Tsipras to expel Katrougalos from the cabinet if the reports are proven true.

"It wasn't enough for him that he built his political career on an anti-bailout demagogy, jeopardizing the country's existence. He also turned it into a lucrative profession. And now he took over the government portfolio that will allow him to satisfy his clients," the socialist PASOK party co-ruling with the conservatives until January commented in a characteristic press release.

Vima said an investigation into the case will continue and more data will be brought to light in a few days.

Despite Katrougalos' explanations, the newspaper said questions remained. It insisted that there was still a conflict of interest "for a minister who defends people against the state instead of defending the state's interests."

It also insisted that despite the closure of his legal firm, Katrougalos was still indirectly involved in such cases through his close law associates who are in the forefront.

During the first cabinet meeting the Greek premier called on his ministers to govern in a new style and pledged that there would be zero tolerance in cases of arrogance and corruption, Vima stressed.

Government sources claimed that the report was part of a slandering campaign against the government by media barons who fear the radical left's war against corruption.

Tsipras has promised to take on the group of wealthy Greek businessmen who have dominated Greek economy and politics for decades by building close ties within the political system. Endi