Quantcast
Channel: Cyprus Mail
Viewing all 6907 articles
Browse latest View live

Move to set up fund to handle hydrocarbons wealth

0
0
Author: 
Stefanos Evripidou

JUST HOURS after cabinet approved the start of negotiations to award licences for gas exploration in four of Cyprus’ offshore blocks, Commerce Minister Neoclis Sylikiotis met with the Legal Service yesterday to discuss how best to manage the potential gas revenue.
Speaking to the state broadcaster, Sylikiotis said he gave instructions to the Attorney-general to prepare a bill setting up a hydrocarbons fund to handle the massive wealth expected from the natural gas in Cyprus’ exclusive economic zone (EEZ).
“We need to prepare this legislation from now, even if the gas is not expected for some years yet, because we earn credibility if we have the proper institutional framework from the start,” he said.
The minister said the authorities were partly basing their plans on how to handle potential gas revenue on the “Norwegian model” of handling sovereign wealth produced from its own natural resources. 
The billions of euros expected in gas revenues will be partly used to build the necessary energy infrastructure like a liquefaction terminal and gas pipes. Another part will be used to complement the state budget, including servicing the huge debt knocking on the door in the shape of an EU bailout. And a third part will be “invested for future generations”, a reference to the planned hydrocarbons fund. No mention was made of the percentage of hydrocarbon profits that would be tucked away for a rainy day.
“For Cyprus to play a significant role in exploiting hydrocarbons, it has to play a leading role in the infrastructure. For the terminal, we’re talking about an investment of €7-8 billion,” said Sylikiotis, noting that the government would use the hydrocarbon deposits in its EEZ as collateral to secure loans to make the necessary investment in energy infrastructure.
The minister pointed out that when Norway first set up a sovereign wealth fund, the money was initially used to set up the necessary infrastructure. Today, only a fraction of proceeds are spent on the state budget.
Cyprus’ own hydrocarbon fund should be an independent body regulated by the Central Bank but which can come under the scrutiny of parliament and the finance minister, said Sylikiotis.
After striking oil in huge quantities in 1969, Norway spent the next 20 years extracting oil and spending the relatively low revenue created. In 1990, in an effort to manage rising income flows, the Norwegian sovereign wealth fund was established to put in all oil revenue plus any return from the fund’s investments. Six years later, the first profits from oil revenue were put in the fund.
Now, with around €400 billion at its disposal, it’s the world’s largest fund, owning 1.0 per cent of all stocks in the world.
The Norwegians have imposed strict ethical guidelines on prudent investment to ensure the fund achieves a high return for future generations while respecting fundamental human rights.
Since 2001, all oil revenue is put directly in the fund while approximately 4.0 per cent of its value is transferred to the annual budget. The 4.0 per cent represents the ministry’s estimation of the dividend created by the fund.
One of the reasons why the system works so well and Norway is considered a model for other petroleum-producing countries is the level of transparency and strict oversight.
Speaking previously to the Cyprus Mail, analysts have warned against considering gas revenues as additional budget funding, which could result in more civil servants, lower productivity, more money wasted, higher tax evasion and less investment in the private sector. 
Four licences for gas exploration in offshore blocks were announced by the government on Tuesday night as part of the second licensing round launched in February.
The blocks for which the licenses have been awarded are: 2, 3, 9 and 11. They are all contiguous blocks, lying north and north-east of Block 12, where US firm Noble Energy has a concession to drill.
The four blocks were awarded to a mix of consortiums and single bidders, including Italian ENI, French Total, South Korean KOGAS, and Russian companies NOVATEC and GPB Global Resources.
Assuming negotiations with the selected companies are successful, the companies would next sign signature bonuses sometime in early 2013.
Sylikiotis said he expects exploratory drilling to start within a year and a half to two years. In the meantime, the ministry will continue its evaluation of the remaining bids for the remaining blocks. 
Ruling AKEL spokesman Giorgos Loucaides said yesterday the decision to enter into negotiations with those specific companies was based to a large extent on the criteria of national security, bearing in mind Turkish threats and actions in Cyprus’ EEZ.  



 


State lottery enters the 21st century with own website

0
0
Author: 
Stefanos Evripidou

THE STATE lottery yesterday announced its first foray into the online world with its own website, 54 years after the lottery came to Cyprus.
State lottery director Stavros Michael presented the new website yesterday, noting that members of the public can now access information on the different lottery tickets available, winning tickets, legislation governing the state-sponsored gambling operation, and other relevant information. 
The state lottery was first introduced in 1958 under British colonial rule, printing out 80,000 lottery tickets for a grand prize of (CY) £5,000 or €8,543.
The lottery was suspended for a brief period during the EOKA freedom struggle, but then reinstated in 1961, after independence. It has been operating ever since, introducing the ‘scratch card’ lottery ticket in 1979. 
According to Michael, over half the money made goes back to the public. Consumers receive 50.1 per cent of the profits made from lottery ticket sales in prize money, while 37.8 per cent is net profit, 10 per cent is the commission paid to agents, 1.3 per cent accounts for operational costs, and under 1 per cent is spent on personnel.
“The majority of those who win the state lottery belong mainly in the low to medium-sized income brackets. The money won, based on the statements of the winners, is used to pay off debts, pay for their children’s education, build or add to their homes, help their children etc. In other words, the prize money of the state lottery was well spent,” said Michael.
In 2011, sales dropped by around €5m from €54.3m in 2010 to €49.2m the year after. Net profit in 2011 came to €18.2m, compared to €19.7m the year before, recording a 7.8 per cent decrease.
Last year’s total prize money paid out came to €24.8m compared to €27.6m in 2010.
Between 2000 and 2011, the highest net profit came in 2002 at €27.7m while the biggest prize money given out was recorded in the same year at €35.1m. 
As part of the government’s drive to tighten belts, operational costs were reduced from €1.6m in 2010 to €1.2m in 2011, a reduction of 18.4 per cent.  
For more information on the state lottery and winning tickets, visit: www.lottery.gov.cy
 
 

Record tourism revenue in August

0
0

TOURISM revenue set a new record in August reaching €312.1 million. At 16.9 per cent this was the biggest annual increase in 13 months data released by the Statistical Service showed.
Data based on the Passenger Survey, show revenue from tourism increased to €312.1 million in August compared to €267 million in August 2011.
The period between January and August this year saw revenue reach €1.32 billion compared to €1.22 billion in the same period last year, an increase of 8.5 per cent.
The August figure was the biggest increase since July 2011 when revenue recorded an increase of 18.8 per cent. 
The second biggest revenue from tourism was €306 million recorded in August 2007.


 
 

Dangerous Paphos beach made a little safer

0
0
Author: 
Bejay Browne

TEMPORARY measures have been put in place at a dangerous beach in Paphos which attracts swimmers, despite the fact that it is not designated for bathing.
 President of the Paphos Beaches committee Andreas Chrysanthou told the Cyprus Mail: “Temporary measures have been put in place in the sea facing the beach area close to the Tombs of the Kings.” As this beach is not designated for swimmers, it is not guarded by a lifeguard and is dangerous, especially during high tide with strong underwater currents.
 Chrysanthou said; “Despite warning signs in five different languages, bathers- mostly tourists- choose to ignore this.” He added: “Due to the rip current there have been numerous drownings. I believe there have been three deaths there this year alone.” In the past 10 years, more than 13 drownings have been reported in the area.
 The municipality decided to take temporary measures to aid swimmers in case they get into difficulties.
  “We have placed ten concrete bases which are very heavy-each weighing two and half tones down onto the sea bed. On to those we have attached a red buoy. They are all linked with a special rope. If you are looking at the structure from above it has been created in the shape of an ‘E’,” said Chrysanthou.
 The new structure stretches for about 100 metres and covers the entire length of the beach at a depth of about eighty to ninety metres. Only a small part of the bay is not covered. Chrysanthou says that this is a rocky area and people do not enter the water here.
 “The new additions are very clear to see as they are red. Both large and small buoys have been attached,” he said.
 According to the president of the local beaches committee, the structure is robust and if someone gets caught in a rip tide they should be able to grab onto the rope until the rescue crew arrives.
  “The municipality thought that we should provide this service as it is morally correct to do so.” he said. Chrysanthou was at the beach to see the work being completed. He said that three holidaying families and their children were there despite the numerous warnings.
 “We will probably keep the buoys and rope in place until November or December, depending on how long the clement weather continues. But we will remove them during the winter, if the weather is as extreme as last year it could destroy them.”
 The concrete bases will be kept in place and the ropes and buoys will be reattached in April next year ahead of the beach-going weather. These measures, although welcome are only temporary and a permanent solution to the problem seems a long way off.
 Chrysanthou said that one of the suggestions put forward was to place a number of wave breakers in the bay which he says would eliminate the problems permanently.
 “This would require an investment of around 1.5 million euro, and at the last meeting we had with the ministry of communications, they made it clear that no funds were available for this.If money becomes available, it will be one of the first works to be undertaken. It will be very costly but the beach would be safe. As it is now, the temporary measures will give a certain degree of safety but it is not 100 per cent safe nor does it solve the problem,” he said.

Tax hike might prompt developers to sell their plots

0
0
Author: 
Poly Pantelides

THE GOVERNMENT’S proposed changes to immovable property taxation may provide an incentive for property developers to sell rather than sit on land, said a lead consultant yesterday.
A bill submitted to parliament aims to reform immovable property taxation and bring in an additional €29 million for the government.
The bill proposes lowering the tax free threshold from €120,000 to €40,000 and raising the taxation rate itself on a tier basis which will range from 3.0 per thousand to 12 per thousand.
The tax – separate from that set by municipalities – is calculated on 1980 values despite big rises in the value of plots, apartments and houses. So although home owners will now be called on to pay more tax, it is property developers, and those with considerable property to their name who will be most impacted, said Pavlos Loizou, a consultant and member of the Cyprus  royal institution of chartered surveyors.
According to government figures most property owners own property valued at €40,000 and less in 1980, and will not be impacted. But ten per cent of all immovable property owners, corresponding to a little over 70,000 people will now be taxed at the rate of 3.0 per thousand.
So someone with a plot of land valued in 1980 at €70,000 will be asked to pay €90.
Someone with property valued at €130,000 will be taxed €280 because the first €40,000 is tax free, the next €80,000 is taxed at 3.0 per thousand and corresponds to €240 and the remaining €10,000 which is over the €120,000 tier is taxed at 4.0 per thousand and is an additional €40.
A property developer with land worth €1.2 million will pay €11,700.
This is because taxation jumps at €170,001 to 9.0 per thousand and then again at €300,001 to 10 per thousand. Between €500,001 and €800,000 the rate is 11 per thousand and for any amounts over that it is 12 per thousand.
There are about 3,500 people with property valued at over €300,000 and about 1,000 with property valued at €800,000, according to the finance ministry.
Loizou said that some may not have liquidity to pay taxes but he hailed the fact that some property developers will have an incentive to sell. “Anyone who buys property will have an incentive to do something with it rather than let it sit,” he said.
“Look at Nicosia with its empty plots,” Loizou said.
Having property in the heart of a city and not doing anything with it forces people to move further out and spend more time and money commuting, and forces the government to build more roads, install more street lights and the like, he said.
Be that as it may, the Green party yesterday said it was unfair that the government was proposing taxing immovable property based on 1980 values.
“Discussions… should not take place while the issue of updating the value of immoveable property remains unresolved,” the party said in an announcement.
But a new evaluation to reflect changes in the marketplace will take at least three years to carry out.
However, the finance ministry has said that it was necessary to raise revenue without major delays.

Larnaca jeweller found shot dead

0
0

A 67-YEAR-OLD jeweller from Larnaca was yesterday found shot dead in the Paphos district near Petra Tou Romiou.
Michalakis Demetriou was found dead in a pool of blood near his car on a dirt road at 4pm. State pathologist Eleni Antoniou said Diogenous was shot at least twice but more information would be available today after the post mortem.
Reports said the man was shot in the head and chest from close distance.
Police said they were investigating all possibilities although the main focus was his line of work.
The man’s car had been found ransacked. “The fact that he dealt with the trade of jewellery is under investigation,” Paphos police spokesman Nicos Tsiappis said.
The victim’s son told police that his father had only said he was travelling to Paphos for business.
Police had no indication of how Demetriou ended up in the area.
Also yesterday, a 65-year-old Polis fisherman reported missing by his family was found dead on his boat, police said, but foul play has been ruled out.
Pavlos Ioannou was found unconscious on his boat in the Fontana Amorosa area at around 7pm
He was rushed to Polis hospital where he was pronounced dead on arrival. Ioannou had been suffering with heart problems.
Police have ruled out foul play.
Ioannou had gone fishing early yesterday morning but had not contacted his family who notified police in the afternoon.
The exact cause of death is expected to be determined today during a post mortem.


Paphos hairdresser found guilty

0
0
Author: 
George Psyllides

A 30-YEAR-OLD Paphos hairdresser was yesterday sentenced to life imprisonment for killing his pregnant girlfriend and her toddler on a beach in Yeroskipou last December.
Theodoros Theophanous was sentenced to life for the premeditated murder of 24-year-old Julia Oborok, who was four months pregnant with his child at the time, and was also given 35 years on a manslaughter charge for killing her three-year-old daughter Victoria.
The sentences will run in succession, the three-member criminal court said.
Theophanous was also handed 10 years each for two charges relating to possession of a firearm and explosives.
These will run concurrently with the life sentence.
Oborok was shot while Victoria was nearly suffocated by hand and then drowned using considerable force by the assailant who pushed her face down violently on the stones in shallow water.
Referring to Victoria’s death, the presiding judge said it was the first time that Cyprus witnessed such a serious case of manslaughter.
The defendant did ask Oborok not to take three-year-old Victoria with her to the fatal meeting, the judge said, but even after seeing her in the car, he still went ahead with his hideous plans.
The way he caused the child pain, agony and ultimately her death make one’s hair stand on end, the judge said.
Relatives of the victims welcomed the decision with applause in stark contrast to the hairdresser’s family who broke down in tears. The 30-year-old’s mother fainted.
Security measures at the court were strict with more than 50 police officers deployed inside and outside the courtroom.
The court asserted that the motive for the murders were pathological jealousy and the financial problems faced by Theophanous.
The court heard that the defendant had been paying €30,000 in monthly payments to loan sharks and became enraged when he realised that Oborok was lying to him when she said she would lend him €300,000 that she would in turn get from her grandfather.
The judges judged as reliable testimony from convict Antonis Kitas, who had led police to the murder weapon having won the hairdresser’s trust in prison.
During his trial, Theophanous claimed he adored Oborok and that he considered Victoria his own child.
He accused Paphos deputy police chief, Nicos Sophocleous, as well as Paphos CID officers of exercising psychological and physical violence on him.
He claimed they repeatedly beat him after his arrest to force him into confessing to the murder and that they threatened to set him up if he failed to do so.



Jobless rate exceeds 12 per cent

0
0
Author: 
George Psyllides

THE jobless rate in Cyprus climbed to 12.2 per cent in September, recording one of the highest year-on-year increases in the European Union, it was announced yesterday.
According to the EU statistics service, the unemployment rate in Cyprus rose from 8.5 per cent in September 2011 to 12.2 per cent in the same month this year, which is higher than the EU and euro area averages.
The jobless rate in August this year was 11.8 per cent compared with 11.9 per cent the previous month.
Compared with a year ago, the unemployment rate increased in twenty EU member states and fell in seven.
The euro area (EA17) seasonally-adjusted unemployment rate was 11.6 per cent in September 2012, up from 11.5 per cent in August.
The EU27 unemployment rate remained stable at 10.6 per cent in September 2012, compared with August.
The biggest drops were observed in Lithuania (14.7 per cent to 12.9 per cent), Estonia (11.4 per cent to 10.0 per cent between August 2011 and August 2012), and Latvia (17 per cent to 15.9 per cent between the second quarters of 2011 and 2012).
The highest increases were registered in Greece (17.8 per cent to 25.1 per cent between July 2011 and July 2012), Cyprus, Spain (22.4 per cent to 25.8 per cent) and Portugal (13.1 per cent to 15.7 per cent).
Rates rose significantly in both zones compared with September 2011, when they were 10.3 per cent and 9.8 per cent respectively.
Eurostat estimates that 25.7 million people in the EU27, of whom 18.5 million were in the euro area, were unemployed in September 2012.
Compared with August 2012, the number of unemployed increased by 169, 000 in the EU27 and by 146, 000 in the euro area.
Compared with September 2011, unemployment rose by 2.145 million in the EU27 and by 2.174 million in the euro area, Eurostat said.




Our View: Bank staff have no right to complain about pay cuts

0
0

THE OVERWHELMING majority of Laiki Bank employees (98 per cent) authorised the leadership of their union ETYK, to take all necessary measures, including strikes, to reduce the pay cuts imposed by the bank’s board from last month. The pay cuts, combined with the scrapping or reduction of allowances, range from 4.9 to 17 per cent and are expected to save the bank €16 million per year.
We would have hoped that overpaid and pampered bank employees would have shown a little more maturity, but they have reacted to the pay-cut in the same selfish way as the state school teachers and civil servants. Instead of being happy that they still have job to go to and showing a little gratitude to the taxpayer that will be burdened with debts of billions of euro to save their bankrupt bank, they are protesting because they would have to make a small sacrifice.
There is no shame in our culture of entitlement and greed – the unions have made sure of that. It does not matter to the overpaid members of ETYK that private sector workers on a fraction of their pay will have to pay higher taxes on everything so Laiki could carry on operating. It does not matter that unemployment figures are soaring because, among other things, the bankrupt banks are turning the screw on businesses which are forced to sack workers or cut wages in order to stay afloat. Perhaps the state should have allowed Laiki to collapse to teach its employees and ETYK about social responsibility.
In a rational world, Laiki employees should have accepted pay cuts of even 30 per cent without protest. They are working for a bankrupt business that needs billions in state aid to survive and they are in no position to set any terms. The argument that they were not to blame is irrelevant. How much is the impoverished private sector worker to blame for Laiki’s bankruptcy in order to be burdened with extra taxes and risk losing his or her job? When they were receiving big pay rises and end of year bonuses, bank employees were not sharing these with the rest of us were they?
As for ETYK, it has more responsibility for the mess at Laiki, than it admits. Its leader Loizos Hadjicostis worked very closely with the man responsible for bankrupting Laiki – Greek banker Andreas Vgenopoulos – constantly praising him in public. ETYK’s member on the Laiki board never once complained about Vgenopoulos’ reckless decisions. In short, the union has responsibility for Laiki’s woes, but we doubt Hadjicostis mentioned this to his indignant members at Tuesday’s meeting.
We hope common sense eventually prevails, because a strike by Laiki employees over pay cuts would not just be shameful, it would be the ultimate provocation.     

German minister drops Cyprus bombshell

0
0
Author: 
George Psyllides

GERMAN Finance Minister Wolfgang Schaeuble said yesterday he did not expect concrete negotiations between Cyprus and international lenders to start before 2013, suggesting that the island has missed a November 12 deadline and could be at risk of running out of money before the end of the year.
Speaking at a news conference in Berlin after a telephone conference with his eurozone counterparts, Schaeuble said there had not yet been any concrete negotiations with Cyprus on financial assistance and he did not expect them to commence until 2013.
The unexpected comment flies in the face of everything the government has been stating publicly about the extent of progress in the negotiations and the expected return of the troika. It was quick to respond yesterday, repeating that it was having substantive discussions with the lenders but could not say however whether Cyprus would meet the November 12 deadline.
Cyprus sought financial aid from the European Union and the International Monetary Fund in June but the government has still not concluded a bailout deal with lenders despite repeatedly emphasising that it must be done before the November 12 Eurogroup meeting.
After November 12, it will take the parliaments of individual eurozone nations about six weeks to sanction the Cyprus memorandum.
Government spokesman Stefanos Stefanou said he did not know what the German minister meant and did not wish to interpret the statement.
 “What I can say with certainty is that we have been in consultation with the EU and the troika for some time now and we expect a date to be set for the arrival of the troika to negotiate with the aim of concluding on a memorandum. This is called substantive discussion,” he said.
Stefanou could not say if Cyprus would miss the deadline.
“This is a matter which will be answered when the troika comes to Cyprus and when we start the negotiations,” the spokesman said.
The government appears eager to conclude a deal, faced with the danger of running out of cash by December and being unable to pay the public wage bill.
Missing the November 12 Eurogroup meeting could also mean that Cyprus may be “butchered” if international lenders deal with the country in isolation.
The government spokesman suggested there were alternative scenarios, like the regular Eurogroup on December 17.
“But we are always working on being able to conclude as soon as possible because from the moment there is uncertainty it affects the market in general,” Stefanou said.
He added that the expectation was for the troika to arrive on the island next week.
No specific date has been set however. When Cyprus applied for the bailout at the end of June, the troika visited the island within weeks and submitted a series of proposals to the government on July 25.
The government rejected the proposals and spent months coming up with their own, ones they said would “protect the workers” by not axing wage indexation or CoLA and 13th salaries, but which focused on extensive extra taxation.
The counter proposals were given to the troika over a week ago.
President Demetris Christofias yesterday briefed socialist EDEK leader and House President Yiannakis Omirou on the developments.
Omirou, asked about the German Finance Ministers comment, said Schaeuble may have been misinformed on the situation. If there was more to it, then Cyprus could be in serious trouble, he said. 
The president is scheduled to see other party leaders today. It has long been suspected that Christofias, despite his assertions to the contrary, does not want to be the one to sign a troika-compiled bailout, and is attempting to stall until the February presidential elections when he will be out of office.
Moscow meanwhile reiterated yesterday that any financial assistance to Cyprus must be done through the EU.
Cyprus applied to Russia for a €5.0 billion loan on top of €2.5 billion it borrowed in 2011.
“Our Finance Ministry is considering this application. We don’t have special funds to support the European economy, but we’re willing to consider such an application. And of course it must be done in cooperation with the European Union. I don’t think in the current difficult conditions these kinds of problems can be solved on a bilateral basis,” First Deputy Prime Minister Igor Shuvalov said in an interview with Euronews.





Wolfgang Schauble

Jeweller was shot at close range

0
0

INVESTIGATIONS are still ongoing into the case of the murdered jeweller Michalakis Demetriou, 67, from Larnaca who was found dead near Petra tou Romiou in the Paphos district on Wednesday. 

State pathologist Eleni Antoniou confirmed yesterday what her initial findings had indicated, that the victim was killed by two shots fired from close range, with the use of a hunting gun. 

Cartridges were found at the scene, which confirm the police and Antoniou’s findings, although Police Spokesman Andreas Angelides was unable to give exact details as to the model of the weapon used.

Angelides told the Cyprus Mail that all possibilities were still being investigated although he could not divulge any further information. 

EOKA fighters to press ahead with case against Britain

0
0
Author: 
Poly Pantelides

VETERAN EOKA fighters will push ahead with legal procedures despite a controversial UK bill to stop the public disclosure of evidence for “reasons of national security”, one of their lawyers said yesterday. 

Cypriots are determined to sue the British government for damages and an apology for torture during the fight against colonial rule, lawyer Christos Clerides said.

A British court has already ruled on the right of three Kenyans to pursue damages for torture in the 1950s, which “has paved the path for us to carry on,” Clerides said.

Because of the Kenya decision, two questions are answered: whether a law suit would be admissible in court and whether the court would admit a case dating back over fifty years, Clerides said. 

Top secret foreign office files made available this year, have showed that EOKA fighters and civilians were brutally tortured between 1955 and 1959. 

The Foreign and Commonwealth Office has said it will make more documents available by September 2013 that will also need to be studied, Clerides said.

“We are being careful to ensure the cases will be strong,” he said. 

Clerides confirmed that about 20 cases stood out, although about 60 individuals have detailed alleged abuses and said they are willing to go to court.

The Kenyan claimants are looking for an apology and funding for welfare benefits for Kenyan torture victims. One of their lawyers said last month following the British court ruling that “from Malaya to the Yemen, from Cyprus to Palestine,” colonial torture victims would surely be reading the court judgement “with great care”.

Clerides said that many of the Cyprus colonial administration files contain “admission of abuse” and could support a suit against the UK government.

But to complicate matters, the UK’s Justice and Security Bill aims to extend closed procedures allowing for secret courts for reasons of national security in civil cases. Amnesty International said in a recent report that, “as currently drafted the bill could potentially affect a much broader range of cases” despite claims it aims to deal with cases involving spies and national intelligence.

Cases it could affect could include negligence actions, civil actions against the police and torture claims by Cyprus and Kenya. Amnesty International said that because “national security” was not defined, it could be broadly interpreted. 

The Guardian chimed in to question the motives behind the bill suggesting that some intelligence and security agencies would regard information that damages their reputation to be a threat to national security.

The bill is due to be discussed at the House of Lords for its final stage at some point this month, the Guardian reported.

Clerides said that given the legal precedent by the Kenyan case and human rights’ obligations towards the European Union, he thought it was unlikely Cyprus’ case would be jeopardised.

“A state can’t decide whenever it wants that people can’t sue,” he said.

But Thassos Sophocleous, an EOKA veteran who claims he was tortured for over two weeks, said the British government was trying to hide its history.

“Let them apologise and admit they committed these atrocities,” Thassos Sophocleous said.

AKEL proposes doubling fines for gambling

0
0

RULING AKEL has tabled a legislative proposal calling for more severe penalties for illegal gambling.

The proposal seeks to amend current punitive laws on gambling establishments, and concerns the owners or operators of such establishments.

Under the AKEL proposal, persons found guilty of organizing/supervising/tolerating gambling will be subject to fines of up to €3,500 and/or a maximum prison sentence of three years; currently, the law provides for a fine not exceeding €1,700 and/or a prison sentence of up to one year.

Gambling for money, even in a private home game, is illegal in Cyprus.

AKEL MP Aristos Damianou said the purpose of the bill was to crack down on card games hosted by establishments such as ‘social clubs’ or clubs associated with association sports.

Authorities anticipate that gamblers will turn to traditional card games following a crackdown on electronic gambling outlets following the passing of a law banning online betting services.

CyTA boss given €60,000 bonus for ‘doing his job well’

0
0

 

THE FORMER CEO of the Cyprus telecommunication authority (CyTA) Fotis Savvides who retired this week at the age of 63 said yesterday that he was given an added bonus of €60,000 as a reward for doing his job well.

“It is not fair to insult CyTA, myself and my contribution to the company,” Savvides said referring to media criticism of the bonus – offered in addition to the expected lump-sum payment he received on retirement.

CyTA chairman Stathis Kittis told state broadcaster CyBC last week that the board had “already undertaken an obligation” to pay the sum. 

The bonus was part of an out-of-contract agreement with the board to offer incentives for meeting annual performance targets “so we could be effective and helpful”, Savvides said, adding that the CyTA board could have fired him if he had not met his targets.

These included retaining customers and meeting sales targets.

CyTA said in its 2011 report that it had increased profit from services compared with 2.9 per cent or €2.4 million in 2010 despite the financial crisis.

In 2010, CyTA increased profits by €1.5 million compared with 2009.

However, in 2009 profit from services fell by 34 per cent or €38 million because of a “reduction in CyTA’s turnover … and an increase in operating expenses,” the company said in its annual report. 

So the profits in 2010 and 2011 have not made up for the loss of 2009.

Savvides said yesterday that many companies had a system of rewards in place and it was common for bank executives to leave with millions of euros in bonuses. 

Under his contract, Savvides is entitled to pay off the residual value of a Jaguar he used as CEO, but it might not be worth paying given the  drop in the prices of used cars he said. 

 

No clue about ‘new’ loan from Russia

0
0
Author: 
Elias Hazou

FINANCE Minister Vassos Shiarly said yesterday he had no clue about a “new” Cypriot proposal for an interstate loan from Russia.

“I am not aware of any new specific proposal by Nicosia to Moscow,” Shiarly told newsmen. 

He was responding to what AKEL leader Andros Kyprianou earlier told newsmen. Kyprianou said that Cyprus has submitted to Russia a “new” or “revised” proposal for a loan.

The AKEL chief said President Christofias had personally briefed him on the government’s latest proposal for a loan before he [Kyprianou] flew out to Moscow last Sunday.

While in Russia, Kyprianou met with the Chairman of the State Duma Sergey Naryshkin, Deputy Foreign Minister Alexander Grushko and the leader of the Russian Communist Party Gennady Zyuganov. He said he had the opportunity to discuss the matter of the loan request with the Russian officials.

According to Kyprianou, President Christofias – realising that Russia was having difficulty responding to Nicosia’s initial demand for a loan – has submitted a new proposal, which was “now on the table.”

But later in the day, and following the finance minister’s comment that he knew nothing of the kind, Kyprianou seemed to modify his earlier remarks: he said the proposal he had referred to was "essentially” the same proposal submitted to Moscow back in June.

“It is a modified proposal, but the substance of the proposal remains the same,” he said.

It is hardly the first time the Presidential Palace and the Finance Ministry appear to be out of sync, be it on the progress of EU bailout talks or on the elusive Russian loan.

Cyprus applied to Russia for a €5.0 billion loan on top of €2.5 billion it borrowed in 2011.

On Wednesday, Moscow reiterated that any financial assistance to Cyprus must be done through the EU.

“Our Finance Ministry is considering this application. We don’t have special funds to support the European economy, but we’re willing to consider such an application. And of course it must be done in cooperation with the European Union. I don’t think in the current difficult conditions these kinds of problems can be solved on a bilateral basis,” First Deputy Prime Minister Igor Shuvalov told Euronews.

Weighing in, presidential candidate Yiorgos Lillikas, who also was in Moscow recently, said the Russians had “certain concerns” about Cyprus’ request for a loan. One concern, he said, was that the troika insists that its own loan be repaid first before the Republic of Cyprus repays other loans.

The prospect of Russia waiting in line [for its loan to be repaid] did not “appeal” to Moscow, Lillikas said.

The Russians’ other worry, he added, is the prospect of a future haircut on any loan given to Cyprus, explaining that this was why Shuvalov said any financial assistance to Cyprus should be done through the EU.

With Cyprus yet to conclude a bailout agreement with the troika, the question of a Russian loan has turned into a saga, re-emerging several times over the past couple of months. Despite clarifications such as Shuvalov’s, the government camp here has been striving to give the impression that the issue of the Russian loan is “alive.”


Fatal lorry crash closes highway for five hours

0
0
Author: 
Peter Stevenson

A LORRY carrying a load of sand flipped over on the Nicosia-Limassol highway yesterday, killing the driver, a Greek national, seriously injuring his passenger, and closing the highway for nearly five hours. 

The accident occurred around 11am in the area of Ayios Giorgios Alamanou. The lorry crossed over into oncoming traffic, after breaking through the separation barrier and overturning. It split in two and scattered its cargo of sand all over the highway. 

Driver Giorgos Chotzeas, 50, a Greek national, died instantly; his passenger, a 42-year-old woman was rushed to Limassol General Hospital where she is fighting for her life. 

Chotzeas died instantly after being thrown from the driver’s cab. He was not wearing a seatbelt.

The reason he lost control has yet to be ascertained, although according to Limassol traffic officer Emilios Kaffas the driver could have possibly lost control of the vehicle due to a mechanical fault or a burst tyre, or due to speeding. 

Witnesses have claimed the lorry was travelling at high speed when the driver lost control. 

“It is a miracle we are not mourning other victims,” said Kaffas.

Online news website Sigmalive posted pictures clearly showing the heavy vehicle was travelling with at least one bald tyre. Sigmalive revealed also that the lorry had passed its MOT just two days earlier. The news site posted a photo of the MOT document, which is clearly dated October 30. It also posted a photo of a bald tyre it said was taken of the overturned lorry. 

Head of traffic police Demetris Demetriou who appeared on the Sigma broadcast said this was the second instance recently of a heavy vehicle crossing into the opposite lane on a highway.

Pressed as to how the lorry could have passed an MOT and yet have worn-out tyres, Demetriou said police were looking into it. He said the investigation was underway to see if speed caused the accident or whether there were some other factors involved, and that responsibility would be apportioned if this was the case. 

After colliding with the separating barrier the lorry split in two; the load-carrying container at the back was sprawled on the tarmac, on the Nicosia to Limassol lane of traffic, while the engine compartment ended up in the Limassol to Nicosia lane.

The sand that the lorry was carrying spilled over into all four lanes, forcing police to shut down the highway. Police were able to re-open the Nicosia to Limassol lane at around 3pm whilst full flow was resumed half an hour later.

Shiarly: troika will be here very soon

0
0

FINANCE Minister Vassos Shiarly said yesterday he hoped international lenders would visit "very very soon" for a final round of talks on financial aid and conclude them before a meeting of eurozone finance ministers on November 12.

Shiarly also told state radio that he believed comments attributed to his German counterpart Wolfgang Schaeuble on a delay in talks until 2013 on Wednesday were a "misunderstanding".

"I believe, and hope that very very soon there will be an announcement for the arrival of the troika," said Shiarly, referring to the collective of lenders from the European Commission, the European Central Bank and the IMF.

An IMF spokesman said yesterday they expected a follow-up mission soon but no date has been set yet.

"..We would want it (a deal) very much to be discussed on November. 12," Shiarly added, but implied that things were still fluid. 

He has said before that he wanted finance ministers to approve a deal at the November meeting. It would still need approval from national parliaments, which could take about six weeks.

Schaeuble said on Wednesday that concrete negotiations between the troika and Cyprus had not started yet and his assumption was that they would start in the coming year.

The German minister was responding to a question on whether lenders would ask Cyprus to raise its low corporate tax in return for the aid.

Schaeuble said he was not in a position to evaluate the negotiations but he knew that members of the monetary union have raised this demand emphatically. “And I believe the Cypriot government knows this.”

The government has repeatedly said that the corporate tax, one of the lowest in the EU, was non-negotiable.

Cyprus sought aid from its EU partners and the IMF in June after its two largest banks were battered by a Greek sovereign debt write-down, further depressing an economy already struggling with public finance problems.

Minutes of a confidential meeting with party leaders on October 3, leaked to media this week, showed Shiarly expressing concern some EU partners would "butcher" the island in their austerity demands in return for aid if Cyprus’ case were to be discussed in isolation.

The same minutes quote the minister as saying the government may struggle to pay public sector salaries in December unless a bailout deal is clinched by mid-November.

Meeting December's payroll commitments was contingent on the goodwill of bankers, the minister said according to the minutes.

Central Bank Governor Panicos Demetriades meanwhile said “substantial progress” had been made in talks with the troika

"I can say there has been substantial progress - in the last few days particularly - in our negotiations with the troika," Demetriades said yesterday. "I anticipate the troika will be in a position to come to Cyprus soon with the purpose of finalising the financial assistance programme."

The government has been accused of dragging its feet in preparing its response to the lenders who had submitted their proposals on July 25, after two fact-finding missions.

The administration says it wanted to consult with parties and unions before putting together its package.

Demetriades said the reform programme currently being discussed as part of the island bailout, contained some of the most significant changes since the inception of the Republic.

"It is vital these reforms have the legitimacy they deserve to have," he said.

Main opposition leader Nicos Anastassiades signalled that Cyprus has already lost the November 12 deadline.

“I am worried by the fact that valuable time has been lost and what is more worrying is that we overshot the November deadline,” Anastassiades said. “I don’t want to say more on the dangers stemming from the delay.”

Anastassiades, who spoke after meeting President Demetris Christofias, said time was of the essence as regards the conditions of the bailout so that they don’t become worse.

Christofias said Cyprus was not “begging the troika to come”  but was “inviting” them. “Of course, we are guided by several positions and strategic principles that we have set,” he said. 

 

Our View: Cyprus has been in no hurry to clinch a deal with troika

0
0

GERMANY’S Finance Minister Wolfgang Schaeuble’s remark that he did not expect concrete negotiations on the Cyprus bailout to commence before 2013 came as a big shock to everyone in Cyprus. Even the government spokesman Stefanos Stefanou feigned surprise, saying he did not know what Shaeuble meant.

Stefanou said: “What I can say with certainty is that we have been in consultation with the EU and the troika for some time now and we expect a date to be set for the arrival of the troika to negotiate, with the aim of concluding on a memorandum. This is called substantive discussions.” 

Perhaps the Christofias government’s idea of “substantive discussions,” is different from the troika’s. It is no secret, despite the assurances of the finance ministry, that the two sides were not very close to a deal, as there is a huge gulf separating the package suggested by the troika and the counter-proposals submitted by the government three months later. 

How there could be “substantive discussions” when there is no common ground and the government is refusing to discuss a range of issues (the infamous red lines), only Stefanou could say. The spokesman was honest enough to refuse to say whether we would make the November 12, Eurogoup meeting that would approve the bailout. If the bailout agreement was not ready by this deadline and we had to wait for the Group’s December meeting for approval, it would be 2013 before funds were released.

Under the circumstances nobody should have been surprised by Schaeuble’s remark, which was based on his knowledge of the snail’s pace at which bailout talks were taking place. At the rate they have been taking place and the feet dragging by President Christofias it is perfectly plausible there would be no bailout deal in time for the November 12 meeting. With his counter-proposals and red lines Christofias went out of his way to avoid a deal, unless he was so stupendously foolish to believe he could impose his terms on our lenders. 

This is why the memorandum might not be ready by November 12 and no bailout funds would be received before next year. Schaeuble’s comment was based on a rational evaluation of the facts – the government has been dragging its feet, it submitted counter-proposals that ensure against a quick deal and has been stirring opposition to the troika. 

As far as Schaeuble was concerned “specific negotiations with Cyprus have not yet begun.” When they will begin and, more importantly, when they would finish is anyone’s guess.

Cyprus Mail celebrates its 67th birthday

0
0
Author: 
Theo Panayides

 

“GROWING Violence in Palestine” read our headline on November 2, 1945, a headline that could still apply today. The more things change, the more they stay the same – and the Cyprus Mail has stayed much the same for 67 years now, even as things have changed around it. 

 Cyprus is now unrecognisable from the quiet, predominantly rural British colony which received our very first issue, though in fact the front page 67 years ago didn’t contain any Cyprus news. Instead we wrote about a British brigadier killed in Java, an attempt to break the British air-speed record (which stood at around 600 miles an hour) and the end of a strike by Manchester dock-workers.

 Indeed, that alleged pro-British ‘bias’ has been the paper’s biggest problem in the past six decades – rather unfairly, because the Mail never hesitated to be critical of the British authorities in colonial days, taking them to task in scathing editorials, and covered the EOKA uprising extensively and objectively.

 The paper is still aimed partly at British expats, and of course it still features more British news than its Greek-language equivalents, but its focus has always been Cyprus, covering the island longer than any other local paper. Waves of emigration in the 40s and 50s, changing social mores, rising divorce rates, the shift from rural to urban – and of course EOKA, independence, the fighting in 1963, the Turkish invasion, the 2004 referendum, EU accession: all this has been grist to our mill.

 And what about the Cyprus Mail website? Well, let’s put it this way: not only was there no World Wide Web in 1945 – there wasn’t even a Tim Berners-Lee (he was born 10 years later), the man widely credited with inventing the World Wide Web! That, at least, is one thing that hasn’t stayed the same in 67 years.  

 

Cyprus Rally kicks off

0
0

THE much-anticipated 2012 Cyprus Rally got underway on Friday night with a Super Special Stage in downtown Paphos. In a thrilling display of driving, Norway’s Andreas Mikkelsen (pictured at the starting line) went on to steer his Skoda Fabia S2000 to a winning time of just 2m 48.6s to take the evening’s all-tarmac LTV Super Special Stage 4.4s faster than 2nd placed Jarkko Nikara of Finland in his Subaru Impreza. 

Fielding a Ford Fiesta RRC, Nasser Al-Attiyah of Qatar was next fastest through the stage, scoring the same time as Toshi Arai in his Subaru Impreza. Both drivers finished the stage 5.7s behind Mikkelsen.

The impressive drive saw defending IRC champ Mikkelsen carry a 4.4 second overnight lead into Day 1 of the event tomorrow, which kicks off at 07:15 from the Service Park, located just metres from the Mediterranean at Pafos’ attractive harbour. 

In a scintillating super special, an impressive array of national, regional and international drivers showed terrific pace, flying through the narrow streets of Pafos at breakneck speed. The stage attracted droves of spectators who saw Germany’s Sepp Wiegand (Skoda Fabia S2000) come through 5th fastest, Saudi Arabia’s Yazeed Al-Rajhi (Skoda Fabia S2000) 6th, France’s Robert Consani (Renault Clio R3) 7th,  Cyprus’s Paraskevas Paraskeva (Mitsubishi Lancer Evo IX) 8th, and Austria’s Andreas Aigner (Subaru Impreza) 9th. Hungary’s Miklos Bujdos, steering a Mitsubishi Lancer Evo IX, rounds off the top 10 fastest drivers through the stage.

While Mikkelsen has already effectively secured the 2012 IRC title, he has promised a competitive drive in his Skoda here this weekend. But despite the Norwegian’s early lead, Qatari ace Al-Attiyah won’t make it easy for him. Al-Attiyah has chalked up an impressive number of wins on Cyprus events and will be keen to bring his experience to bear this weekend and take maximum points in his quest to secure the 2012 FIA Middle East Championship title.

With the Cyprus event also counting towards this year's IRC Production Cup, and the IRC 2WD Cup, fans can be sure there’s plenty more blisteringly fast rally action to come. 

The mixed-surface event will play out over the next two days and will take in some of the island’s most breathtaking scenery. Rally fans are encouraged to take note of the change in itinerary announced by the Cyprus Rally organizers this week, which essentially saw the Saturday and Sunday programmes swapped.

Saturday will see competitors tackle six special stages in the countryside east of Paphos. The first car will enter the first stage of the day SS2 (Koilinia) – a mostly gravel stage – at 08:13, and SS3 (Salamiou) – 57% tarmac – at 09:16. Crews will then tackle SS4 (Panayia) – 100% gravel – from 09:59, before returning to service in Pafos at 11:49. After exiting service at 12:19, drivers will repeat the morning stages – SS5 (Koilinia) at 13:17, SS6 (Salamiou) at 14:20, and SS7 (Panayia) at 15:03.

The 2012 Cyprus Rally will see crews cover a total of 694.76km, of which 237.14km will be special stages. 30.97% (73.45km) of the stages will be tarmac, and 69.03% (163.69km) gravel.

For up-to-the-minute results and updates, visit the official event website at www.cyprusrally.com.cy 

 

Viewing all 6907 articles
Browse latest View live




Latest Images