An open letter to the CO`s

I have heard in the chatroom from a MOD, that it is possible for MODs to read anyones PMs, is this the case? If this is true then is there a way for the CO`s to prevent this? It appears to me that if it is true then this is direct abuse by a MOD.
I should have thought that the very name of the missive in question should give it away.Private should mean Private!!!!!DPA and all that!
I don't know where this rumour has come from but its not true. If anyone believes that it has happened to them then I would be very keen to hear the details.

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