No they cannot.
To clarify, Mods can only SOFT delete. (Simply says delete to them though)

This means any member of administration can refer to the topic and see those deleted posts which are clearly highlighted.

I would however, prefer them to be moved, as its far easier then for ALL the web team to access instead of people having to rely on me or IB admin to do it.

Westy.
I hope the above clarifies the situation for you, so the ball is back in your park. Proof please.