- Classified funds are a common feature of defense ministries around the world, typically used for “intelligence gathering” – which includes payments to “sources” for access to documents, photographs, or other information deemed useful for national defense.
- Greece, however, appears to be an outlier in its use of classified funds. According to an investigation by Data Journalists, these funds are being spent on everything but national defense.
- Why did the Expenditure Audit Office replace the Court of Auditors?
- How did changing a single word allow officials to erase financial records that are required to be kept for six months until 2023?
- The trick with multiple payment orders.
- 500,000 for the renovation of the Hellenic Army Officers’ Club!
- Over half a million euros for the relocation of the “Floros Monument”.
Του Paris Karvounopoulos
The classified funds of the Departments of Defense and State have long been a source of political tension and controversy. But despite repeated debates, no solid conclusions have ever been reached. The mere label “classified” has always been enough to shut down any investigation or inquiry.
In Greece, the term “classified” is used so often that it has lost its true meaning. In reality, it has become a permanent tool of cover-up. Many direct-award contracts in the armed forces are hidden behind the labels “classified” or “confidential,” making it nearly impossible to investigate allegations that occasionally surface. Access to records related to these secret funds has become almost unattainable.
The last public disclosure of the amount of “secret funds” managed by the Ministry of Defense dates back to 2018. At that time, Panos Kammenos admitted via Twitter that the ministry controlled 600,000 euros. This suggests that the General Staff, which also has its own secret budget, handles even smaller amounts.
Panos Kammenos’ tweet:
https://x.com/panoskammenos/status/1053306162492436481?s=10
Since 2019, multiple reports have suggested a surge in secret funds. Our research confirms that this claim is true. For example, in 2024, the General Staff of the Hellenic National Defense (GEETHA) managed a budget of several million euros. While we do not disclose the exact figure for obvious reasons, it is still staggering for military general staff. Similarly, the Hellenic Army General Staff (GES) also handled millions in secret funds, although its budget was only half that of GEETHA.
However, hundreds of thousands of euros were spent on expenses unrelated to clandestine operations or intelligence gathering – raising serious questions about the real purpose of these funds.
More than €500,000 was spent on the renovation of the Hellenic Army Officers’ Club (GES). In addition, nearly half a million euros was wasted just to move the Monument of Heroes from the premises of the Ministry of National Defense (MoND) to a storage facility. Most importantly, the cost of building the monument itself remains a closely guarded secret. The project was initiated by the then Chief of the General Staff of the Greek National Defense (GEETHA), Konstantinos Floros, and was completed shortly before his retirement. As soon as he stepped down, Defense Minister Nikos Dendias ordered its removal while announcing the “renovation” of the ministry – a project now overseen by sculptor Costas Varotsos.
The revelations raise serious concerns: if the relocation of the Floros monument cost nearly €500,000, how much was spent on its original construction? Could this be the reason why the total cost remains undisclosed?
According to the Data Journalists’ investigation, all spending by the General Staff of the Hellenic Army (GES) has been divided into several smaller payment orders, ensuring that no single transaction exceeds €100,000. This is crucial because larger amounts fall under the jurisdiction of the General Staff of the Hellenic National Defense (GEETHA) and the Ministry of National Defense (MoND). While the exact total of MoND’s classified funds remains unknown, it far exceeds the €600,000 that Panos Kammenos admitted in 2018.
Kept in the dark
The irregularities surrounding the MoND’s classified spending are numerous. While renovations and monuments are among the most blatant examples, deeper concerns arise from the vague spending justifications used in official records. Is there any real oversight or accountability for these funds? The answer is no, even though it is taxpayer money.
Those who receive payments from classified funds are not required to sign receipts. The general staff responsible for the payment simply submits a report to the General Accounting Office. These expenditures are excluded from Diavgeia (the government’s transparency portal) and are not registered in the Central Public Procurement Registry (KIMDIS).
Until the end of 2023, these formal expenditure reports were destroyed six months after they were submitted to the Court of Auditors. However, a recent change has further fueled suspicions about managing secret funds.
A single word was changed in the regulations governing secret spending, effectively eliminating even the six-month window during which these reports could have been subject to scrutiny.
The original provision read:
“After six months from the submission of the report to the Court of Accounts, a committee of officials shall be formed to prepare a report for destruction in one copy.”
It is clear that – apart from the replacement of the Court of Auditors with the Court of Audit – with this wording, the six-month period is effectively erased, deleted, and any supporting documents that have been kept for at least six months can be destroyed the day after they are submitted.
“Within.” A single word worth millions…
