The role of the GrowthFund in the ELTA case and the government that sought time to manage it.
New Democracy is scrambling to clean up the mess caused by the situation at ELTA (Hellenic Post). According to information, today at 6:30 PM, ND MPs have been summoned to attend a meeting which will include the Ministry of Digital Governance and the ELTA Management. The teleconference will be coordinated by ND Parliamentary Representative Notis Mitarakis. It was not made known if helmets will be distributed, as MPs have been appearing on talk shows all morning, taking aim at ministers and others.
What bankingnews.gr reported earlier:
The fierce backstory behind the lockdown of ELTA stores: everything was decided in the second half of October.
The insistence of the new management of the GrowthFund was the main reason for the "sudden death" of the 204 ELTA stores. The management led by Grigoris Sklikas proceeded with the desperate step of lowering the shutters on 204 branches of the historic company, which was established by Kapodistrias on September 24, 1928, because the Hyperfund overturned the mild plan prepared by the previous management, which had failed to produce results. The deadlock was confirmed in the second half of October, while the competent government officials had no alternative solution to propose. According to reliable sources, the government had been informed about the developments and what would follow, as a meeting had taken place at the Maximos Mansion towards the end of October. The government team prioritized the communication management of the issue, asking for time to process it.
ELTA found no help
The management of ELTA's problems was not handled as it should have been, and the management duo of Konstantopoulos – Balourdos left the historic organization overnight due to critical financial management issues that have not yet come to light.
They burned through €250 million in hot money
The outgoing Konstantopoulos – Balourdos management had pre-designed the future of ELTA by utilizing new drone technology. It is worth noting that the outgoing management handled "hot" money exceeding €250 million, which was wasted on direct assignments and the voluntary retirement program for staff, which cost about €140 million. The new management under Mr. Papachristou of the Hyperfund dug in its heels in addressing the burning issues facing its subsidiary, ELTA.
ELTA ran out of liquidity
The management of Grigoris Sklikas has already completed 32 months at ELTA, but the time was not enough to address the chronic problems, especially since the central administration decided to relocate to a rented building on Ionia Avenue, having previously been housed in the center of Athens. ELTA has not been paid by the state since 2020 for the provided Universal Service, which involves delivering mail to remote villages across the country. Small advances were insufficient to cover its current obligations, while the largest part of the claim remains pending, resulting in a liquidity problem for ELTA. The historic company has a financial claim exceeding €40 million for the three-year period 2020–2023, yet the state is not responding to the request for repayment of the debt.
Xenokostas's ONEX
The permanent employees of ELTA amount to 2,930 people, and the remaining staff of 1,600 employees are outsourced and come from Mr. Panos Xenokostas's ONEX company, which controls the Elefsina Shipyards.
The ELTA of friends and cronies
ELTA was used by the government as a mechanism to serve party friends, with direct assignments playing a leading role, while its core activity was sidelined, leading to the problems escalating. The government, after the public outcry of the past few days, reversed course. The lockdown of the provincial branches is temporarily suspended until further notice. It should be noted that the permanent staff of ELTA sacrificed part of their wages for the company's rescue, and their salaries have been frozen since 2010. In contrast, the government unfroze the salaries of senior executives recruited from the open market, who can leave at any time with high compensation payments.
www.bankingnews.gr
What bankingnews.gr reported earlier:
The fierce backstory behind the lockdown of ELTA stores: everything was decided in the second half of October.
The insistence of the new management of the GrowthFund was the main reason for the "sudden death" of the 204 ELTA stores. The management led by Grigoris Sklikas proceeded with the desperate step of lowering the shutters on 204 branches of the historic company, which was established by Kapodistrias on September 24, 1928, because the Hyperfund overturned the mild plan prepared by the previous management, which had failed to produce results. The deadlock was confirmed in the second half of October, while the competent government officials had no alternative solution to propose. According to reliable sources, the government had been informed about the developments and what would follow, as a meeting had taken place at the Maximos Mansion towards the end of October. The government team prioritized the communication management of the issue, asking for time to process it.
ELTA found no help
The management of ELTA's problems was not handled as it should have been, and the management duo of Konstantopoulos – Balourdos left the historic organization overnight due to critical financial management issues that have not yet come to light.
They burned through €250 million in hot money
The outgoing Konstantopoulos – Balourdos management had pre-designed the future of ELTA by utilizing new drone technology. It is worth noting that the outgoing management handled "hot" money exceeding €250 million, which was wasted on direct assignments and the voluntary retirement program for staff, which cost about €140 million. The new management under Mr. Papachristou of the Hyperfund dug in its heels in addressing the burning issues facing its subsidiary, ELTA.
ELTA ran out of liquidity
The management of Grigoris Sklikas has already completed 32 months at ELTA, but the time was not enough to address the chronic problems, especially since the central administration decided to relocate to a rented building on Ionia Avenue, having previously been housed in the center of Athens. ELTA has not been paid by the state since 2020 for the provided Universal Service, which involves delivering mail to remote villages across the country. Small advances were insufficient to cover its current obligations, while the largest part of the claim remains pending, resulting in a liquidity problem for ELTA. The historic company has a financial claim exceeding €40 million for the three-year period 2020–2023, yet the state is not responding to the request for repayment of the debt.
Xenokostas's ONEX
The permanent employees of ELTA amount to 2,930 people, and the remaining staff of 1,600 employees are outsourced and come from Mr. Panos Xenokostas's ONEX company, which controls the Elefsina Shipyards.
The ELTA of friends and cronies
ELTA was used by the government as a mechanism to serve party friends, with direct assignments playing a leading role, while its core activity was sidelined, leading to the problems escalating. The government, after the public outcry of the past few days, reversed course. The lockdown of the provincial branches is temporarily suspended until further notice. It should be noted that the permanent staff of ELTA sacrificed part of their wages for the company's rescue, and their salaries have been frozen since 2010. In contrast, the government unfroze the salaries of senior executives recruited from the open market, who can leave at any time with high compensation payments.
www.bankingnews.gr
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