By Jean Christou
THE operation of the new bicommunal Nicosia wastewater treatment plant at Mia Milia is much more than a major technological achievement, EU Enlargement Commissioner Stefan Fule said on Tuesday.
“First, local leaders of the two communities have succeeded in putting the needs of the population first to solve the sewage problems of the Greater Nicosia Area,” said Fule. “I strongly commend their commitment. Faced with the alternative of going their separate ways, they have worked relentlessly for over a decade to pursue this new project for the common treatment of Nicosia’s wastewater.”
The new plant was inaugurated by Fule along with Nicosia Mayor Constantinos Yiorkadjis and the representative of the Turkish Cypriot community of Nicosia Kadri Fellahoglu and other guests including previous mayors who were involved in the long-term project.
The project – with a total budget of approximately €29 million was jointly funded by the Sewerage Board of Nicosia (70 per cent), and the European Union under the Aid Programme for the Turkish Cypriot community.
The Nicosia Wastewater Treatment plant began operating in 1980. In 2003, it began facing environmental problems and the decision was taken to modernise facilities. Work on the new, state-of-the-art plant began in March 2010 and it was put into trial operations in June 2013.
“I am told that this is the biggest wastewater treatment plant on the whole island, incorporating the latest technology in the field,” said Fule.
He said the new plant also benefited the environment as well as human health by protecting drinking and bathing waters from contamination. On top of that, its state of the art technology will give 10 million cubic meters of treated water per year a second life through irrigation. “This can promote economic activity to the benefit of all,” said Fule.
He said byproducts of the waste water treatment could be converted into renewable energy and fertilisers, thus substantially reducing its environmental footprint.
“This project demonstrates how joint, consensual decisions can take shape and work to the benefit of both communities,” the EU Commissioner said.
“For some of you it’s a life’s work, and this plant might not have been built if it wasn’t for your persistence. You played a crucial role and worked relentlessly for the benefit of both communities.”

By Elias Hazou
FACE-to-face talks between the government and Noble Energy on the construction and operation of an LNG plant are finally back on track.
A government-appointed negotiating team – which includes the Cyprus Hydrocarbons Company – was set to hold meetings with the Texas-based firm on Tuesday and again on Wednesday.
The negotiations between the government and the Block 12 partners – Noble, Delek and Anver – are aimed at concluding a final project agreement for an LNG terminal.
Talks were to all intents and purposes suspended in November when Noble decided to allow the government time to make up its mind on several issues relating to the onshore LNG facility.
One such question concerns the degree of the state’s participation in financing. In fact the talks with Noble broke at around the same time the government received a report advising that the facility should remain exclusively in the hands of private investors.
Gas Strategies, a London-based consultancy, outlined for the government three main options regarding the LNG project, by order of preference: complete absence of the state from the multi-billion investment; holding a minority stake in the joint venture; and retaining a controlling interest.
Cyprus is already behind schedule. Back in June 2013, the government signed a preliminary, non-binding agreement or MoU with the Block 12 partners for developing an LNG plant at Vassilikos on the southern coast.
That deal was the first in a series needed for the implementation of the LNG project. A target date of December 31, 2013 had then been fixed for the completion and signing of a final project agreement, which was to set up a joint venture between the parties – a special-purpose vehicle – seeking investors for the multi-billion euro facility.
Noble is planning to drill a second well in its Block 12 concession later this year.
Noble reps will meanwhile be attending as guests a Search and Rescue (SAR) exercise, codenamed Nemesis 2014, taking place Thursday.
Participating in the drill are SAR units and personnel from Cyprus, Israel, Greece, and the United States of America.
The aeronautical exercise scenario deals with a serious accident in open sea within an area where oil and gas rigs are operating along with their supporting vessels.
Training exercises will focus on MEDEVAC and SAR operations, confronting of maritime pollution, asymmetric threats and associated security issues that might arise either on cargo or passenger ships and/or platforms in the Eastern Mediterranean.

By Jonny Hogg and Gulsen Solaker

Turkish Prime Minister Tayyip Erdogan said on Tuesday local elections had given him a mandate to “liquidate” the enemies he sees as contriving a corruption scandal and would go after their international activities and sources of funding.

In his first parliamentary speech since his ruling AK Party dominated March 30 municipal polls, Erdogan said “traitors” responsible for a stream of graft allegations and the illegal tapping of thousands of phones would be brought to account.

Erdogan accuses Islamic cleric Fethullah Gulen, a former ally now based in the United States, of orchestrating the graft scandal to undermine him. Gulen’s Hizmet network claims millions of followers and holds influence in the police and judiciary.

Erdogan has accused the movement of running a “parallel state”, spying on thousands of government officials over years and leaking manipulated recordings in a bid to unseat him ahead of last month’s elections.

“March 30 is the day when the page was turned on tutelage, when the monuments of hubris were felled, and the privileges (of an elite) were lost forever,” Erdogan said.

“The nation gave us a mandate for the liquidation of the parallel state. We will not have the slightest hesitation. We shall never forget the betrayal,” he said.

He said the government would follow up on what he called the network’s international links and investigate all “illegally collected monies and donations”.

The movement, also known as Cemaat (JEH-maat), “The Community”, has for decades been a spearhead of Turkish cultural influence and commerce overseas, especially in the assertive moves into Africa, the Middle East and Asia in the years after the AK Party took power in 2002.

Cemaat says the Turkish government is already putting pressure on governments to close down its global network of schools which have been a major source of influence and revenue. Government officials say Turkish embassies have stopped backing schools and business linked to Gulen.

Hizmet denies using followers in the police and judiciary to launch a graft inquiry targeting Erdogan family members, ministers and businessmen, or any involvement in the illicit recording of top officials.

Erdogan’s Islamist-rooted AK Party relied on Hizmet to break the grip on politics of the army, which carried out three coups between 1960 and 1980 and forced an Islamist-led government from power in 1997. But he now casts the fight with Hizmet as a continuation of that struggle against tutelage in any form, the final chapter in a battle for democracy and justice.

“They will answer before the courts. But not in front of their parallel courts; they will answer before the court of the nation,” Erdogan said.

PRESIDENTIAL AMBITION

Erdogan has made little secret of his ambition to take up a powerful presidency, but such is his determination to finish the battle with Gulen that it remains unclear whether he will run in the first direct elections for the post in August.

He is barred by AK Party rules from standing for a fourth term as prime minister, currently a more powerful role than the largely ceremonial presidency; but the party could amend those rules with relative ease if it feels his leadership is needed to see out the feud with Gulen, senior officials have said.

Erdogan would seek to shape the presidency as a more powerful role than that played by incumbent Abdullah Gul. Erdogan was quoted on Tuesday as saying the direct election of the next president would automatically bestow the role with greater powers.

“The responsibilities will be different after these elections. It will not be a president of protocol, but one that sweats, runs around, works hard,” he was quoted as saying by the pro-government Sabah newspaper.

Until now, Turkey’s parliament has elected the head of state. Gul is a close Erdogan ally and co-founder of the AK Party, tipped as a possible prime minister if Erdogan were to run for what he would shape as the top job.

Erdogan had long wanted to change the constitution and create an executive presidency, but political opposition to such a move has checked those plans for now.

There are also some doubts that Erdogan, for all his popularity among conservative AK Party voters, could win the 50 percent plus he would need in a second round as he is a divisive figure who would struggle to pick up opposition support.

Erdogan’s opponents fear that his election to the presidency could exacerbate what they see as his authoritarian tendencies.

The government has already dismissed or reassigned thousands of police officers and tightened control over the Internet and judiciary in response to the corruption scandal.

It also blocked access to Twitter and YouTube after audio recordings, purportedly showing corruption inErdogan’s inner circle, were leaked on social media. Reuters has not been able to verify their authenticity.

The block on Twitter was lifted after the constitutional court ruled that it breached freedom of expression – a decision Erdogan said on Tuesday was wrong and should be overturned – while YouTube still remains largely blocked.

By Stephanie Nebehay

A looming drought in Syria could push millions more people into hunger and exacerbate a refugee crisis caused by years of civil war, the United Nations said on Tuesday.

Syria’s breadbasket northwestern region has received less than half of the average rainfall since September and, if it stays dry up to wheat harvest time in mid-May, the country – already reliant on aid for millions of people – will need to import even more food.

“A drought could put the lives of millions more people at risk,” Elisabeth Byrs, spokeswoman for the UN aid agency World Food Programme (WFP), told a news briefing.

Based on rainfall data and satellite images, and with the smallest area planted with wheat in 15 years, output of the cereal is likely to be a record low of between 1.7 million and 2 million tonnes, as much as 29 percent less than last year and about half of pre-conflict levels, the WFP said.

Barley and livestock production are also being hit.

In addition to the worst drought since 2008, three years of civil war have ravaged infrastructure, leaving long-term damage to irrigation due to damaged pumps and canals, power failures and a lack of spare parts, the agency said.

This will have “long-lasting effects on Syria’s agricultural production” even after peace is restored, it said.

The threat posed by drought meant the number of Syrians in need of emergency rations could rise to 6.5 million, up from 4.2 million now, Byrs said.

The WFP, which reached a record 4.1 million people with rations in March, said on Monday that it had to cut the size of food parcels to hungry Syrians due to a shortage of funds from donors.

WFP, which feeds hungry people around the world, says the operation in Syria is its biggest and most complex, costing more than $40 million a week.

The funding figure includes the feeding of 1.5 million of the 2.6 million registered Syrian refugees who have fled to neighbouring countries, mainly Turkey, Lebanon, Jordan and Iraq.

“We can expect more refugees to leave if on top of the conflict they feel that their lives are in danger because there is no food. But it’s hard to say obviously because they could also move to other parts of Syria,” Fatoumata Lejeune-Kaba, spokeswoman of the UN refugee agency, told reporters.

Overall, the United Nations has received just 16 percent of the $2.2 billion sought for its aid operations inside Syria this year, with the United States the largest donor at $108 million, followed by the European Commission at $53.7 million and the United Arab Emirates at $50 million.

By David Dolan

South African Olympic and Paralympic sprinter Oscar Pistorius sobbed in the witness stand on Tuesday as he described how, gripped by fear, he shot dead his girlfriend through a locked toilet door thinking she was an intruder.

Taking the witness stand, the double amputee – accused of murdering 29-year-old law graduate and model Reeva Steenkamp - recounted hearing a window sliding open in his bathroom in the middle of the night on Valentine’s Day 2013.

Conditioned by years of living in crime-ridden South Africa, Pistorius said the noises convinced him someone was breaking into his luxury Pretoria home and that he needed to protect himself and his lover.

“That’s the moment that everything changed,” he said, his voice tense with emotion. “I thought that there was a burglar that was gaining entry to my home.”

“The first thing that ran through my mind was that I needed to arm myself, that I needed to protect Reeva and that I needed to get my gun,” said the 27-year-old, who faces life in prison if convicted of murder.

Pistorius said he felt in the dark with his fingers, grabbed a 9mm pistol lying under the bed, then moved on his stumps down the passageway leading from the bedroom towards the bathroom and the would-be intruder or intruders.

“I shouted for Reeva to get on the floor and for her to phone the police. I screamed at the people to get out,” he said.

According to his account, as he peered round the door of the bathroom – his outstretched right hand holding the pistol, his left hand steadying himself against the wall – he noticed the bathroom window was open, confirming his worst fears.

“I wasn’t sure where to point my firearm. I had it pointed at the toilet but my eyes were going between the window and the toilet. I stood there for some time. I’m not sure how long.

“I just stayed where I was and kept on screaming. Then I heard a noise from inside the toilet that I perceived to be somebody coming out of the toilet. Before I knew it, I had fired four shots at the door.”

“CRYING OUT TO THE LORD”

With his ears ringing, he continued to scream for Steenkamp to call the police, he said, until it slowly dawned on him that his girlfriend might have been the one behind the door.

“I was screaming and shouting the whole time. I don’t think I have ever screamed or cried like that. I was crying out to the Lord to help me. I was crying out to Reeva,” he said, choking back the tears.

He then recounted how he bashed out a panel of the wooden door with a cricket bat to reveal Steenkamp – the woman with whom he said had been planning on buying a house – slumped on the floor in a pool of blood.

“I sat over Reeva and I cried,” he said, before breaking down into uncontrollable sobs, causing Judge Thokozile Masipa to adjourn the hearing for the day.

Pistorius’ testimony was broadly in line with a sworn affidavit he gave at his bail hearing just over a year ago. At the time, magistrate Desmond Nair pointed to what he said were a number of “improbabilities” in the version of events.

“I have difficulty in appreciating why the accused would not seek to ascertain who exactly was in the toilet,” Nair said at the time. “I also have difficulty in appreciating why the deceased would not have screamed back from the toilet.”

“CAN’T YOU SLEEP, MY BABA?”

Several witnesses have testified to hearing a man’s shouts coming from the house although they have also spoken of the terrified screams of a woman leading up to and during a volley of shots. Prosecutors allege that Pistorius and Steenkamp had a violent argument before he pulled a gun on her.

The trial, now in its 18th day, has gripped South Africa and millions of sports and athletics fans around the world who saw Pistorius as a symbol of triumph over physical adversity.

His disabled lower legs were amputated as a baby but he went on to achieve global fame as the “fastest man on no legs”, winning numerous Paralympic gold medals and reaching the semi-finals of the 400 metres in the 2012 London Olympics against able-bodied athletes.

Earlier, defence advocate Barry Roux led Pistorius through a series of text messages between himself and Steenkamp that painted the picture of a young couple besotted with each other, nearly every message ending in ‘xx’ or a term of endearment.

The image was a far cry from the gun-obsessed, fast-living hothead whom prosecutors sought to portray in the first three weeks of the trial.

“I wish I could tuck you in and get you feeling better,” Pistorius said in one message after Steenkamp complained of feeling under the weather. “Thank you for being the most beautiful person to me,” she said in another message to him.

However, prosecutors have also used the same cache of messages retrieved from Pistorius’ phone to reveal outbursts of temper and jealousy.

During his testimony, he also revealed Steenkamp’s last words, spoken to him after he woke hot and uncomfortable in the early hours of Feb. 14 before going to move some fans and close the external sliding doors of his bedroom.

“‘Can’t you sleep, my baba?’” he quoted her as saying from the bed beside him. “I said ‘No, I can’t’.”

As he outlined his version of events, Steenkamp’s mother June, who had sat steely faced throughout Pistorius’ two days on the stand, leant forward slowly and buried her head in her hands.

By Jean Christou
WASHINGTON is working on mechanisms to facilitate confidence building measures, according to Deputy Assistant Secretary of State Eric Rubin, but he remained tight-lipped Tuesday on whether the return of Varosha was top of that agenda.
But Government Spokesman Christos Stylianides said there had been “a systematic and thorough discussion on the issue of confidence building measures (CBM), which focused primarily on the issue of Famagusta” during Rubin’s meeting yesterday with President Nicos Anastasiades.
“There are thoughts of mechanisms and initiatives. However it will do the process no good if we create unrealistic impressions,” Stylianides said.
Rubin avoided any specific mention of Varosha when he spoke to media after the meeting. “We discussed ideas for confidence building measures and ways that the international community countries like the United States can contribute to supporting people-to-people efforts and confidence building measures that will start to make real progress in breaking down the barriers that have divided the two communities for so long,” he said.
He added that the US was committed to doing everything it could to help the process move forward as quickly as possible but was quick to play down Washington’s role, despite rampant speculation that the US was the driving force for movement on Varosha as a CBM.
“Our role is obviously not as a participant but as a supporter,” said Rubin. “Our role is as a contributor. We hope to create some of the mechanisms to help support some of the programmes. We are very strongly committed to doing everything we can to make that happen.” Rubin said the US hoped the EU and others would do the same but declined to go into any details on what the mechanisms might be.
Speaking after his meeting with Turkish Cypriot leader Dervis Eroglu, Rubin said Washington believed this was the year when it would be possible to move quickly “so that is what we are supporting”.
“We do believe that there is a need for rapid progress now,” said Rubin. “They [the two leaders] and their negotiators have stated that they want to make rapid progress. We think this is a period when that should be possible. We hope that they will seize the moment. We hope that if there are difficulties they will overcome them. We are very, very hopeful that this will be a year of historic progress and we’re prepared to play our part in supporting it.”
Asked if Famagusta was the key to progress, Rubin said: “It is not for us to say what the key is or isn’t. It’s really for the two leaders to make those decisions.”
In addition to CBMs, the discussions also focused on an assessment of the current negotiations and the more active involvement of the European Union in the process.
Eroglu was quoted in the Turkish Cypriot press yesterday as saying: “The moment you give Varosha, there will be no solution. On the top of it, the solution is being delayed. Because when you give Varosha, they will say: ‘We took Varosha with a little bit of pressure. We can take other things too, if we put pressure.’ This will bring only stalemate.”
He said it was the Turkish Cypriot side’s aim to have a referendum in three months time but Anastasiades did not see a solution before 2015, he claimed.
Comparing Anastasides with former president Demetris Christofias, Eroglu said their politics were not much different but he could say that Christofias was “more pacifist”.
“Now, the USA has become involved quite intensely… because the issue of natural gas has emerged. The USA does not want a solution to earn our favour. They need our friendship in order to continue their own domination,” he said.

Despite reports that US Secretary of State John Kerry would visit Cyprus soon with big news about Varosha, a State Department official said last night there was no trip on the current agenda.

“He would like to go. It is something we are talking about. We’ll see if something happens soon,” the official said.

By Jean Christou
FOREIGN convicts at the Nicosia central prisons are to be transferred back to their own countries to serve their time, while those jailed for misdemeanours will be deported, Justice Minister Ionas Nicolaou said on Tuesday.
Nicolaou said the move was part of sweeping changes to the prison system aimed at diminishing overcrowding and the problems associated with it, such as suicides.
In addition, remaining prisoners will be reallocated within the prison, depending on the length of sentence and level of risk, with those imprisoned for financial debt being moved to the safer open prison
Also, a new medical wing will be opened within a month, comprising ten cells to deal with those inmates who may be suffering from psychological problems and can be better monitored. Those already deemed at risk are to be given a full psyche exam immediately.
Staff training is also part of the changes, the minister said during his presentation of the Guide for the Prevention of Suicide in Prisons. The plan was drawn up by the justice ministry in cooperation with the Ombudswoman’s office, and will involve the police academy, and the rapid-response unit MMAD, and experts from the University of Cyprus.
Nicolaou said the new strategy was a response to the spate of suicides and attempted suicides at the prison between last August and January this year, which prompted calls for changes at the overcrowded facility.
He said the cause in most cases of attempted suicides has been identified as the living conditions, plus relationships with prison staff.
“It would be naive to believe that we can prevent some cases of suicide or attempted suicide, and this applies not only at the central prison but everywhere in society,” said Nicolaou.
“However what we can do is take the necessary measures that will not only improve conditions in prison, and its operation, to minimise or treat as early as possible the high-risk cases.”
He said the new guide gives simple and practical guidelines for the care of prisoners and the training of all staff. “Undoubtedly confinement and restriction of freedom does affect the psychology of prisoners, often leading to feelings of hopelessness and fear for the future,” said Nicolaou.
He said the risk of suicide was usually high during the early stages of imprisonment “the first 48 hours” or a few days before sentencing by the court. “Factors such as the young age of the detainee, family and mental status, history of emotional problems, may increase the risks.”
Nicolaou said from now on, all new inmates will be given a psyche test within 24 hours of arrival.
He also said from now on any threat of suicide or self-harm was to be taken seriously and reported.
“In these cases staff will ensure the continuous monitoring of the prisoner who should not be left alone, and the staff must avoid any behaviour that might worsen the mental health of the prisoner,” he added.
Living conditions have also been improved with longer periods of hot water, electricity 24/7, open visiting hours for all prisoners, more phone calls, more entertainment and sports.
“Overcrowding, violence, lack of activities, exile from family and social networks, and unacceptable living conditions can and do affect the mentality and psychology of prisoners,” said Nicolaou. “Prison should not be a mechanism to take revenge on offenders but a way to help them to social reintegration.”
Nicolaou said investigations were ongoing into the previous suicides at the prison either in terms of disciplinary action or criminal action against staff members responsible.
“Negligence and abuse of power can cost a human life,” said Nicolaou. “And we are not prepared to tolerate the kind of conduct that occurred in the past.”
He said 67 members of staff had already been retrained and the programme was ongoing.
“Unfortunately for years staff did not receive any education or training beyond the basics, and sometimes not even then,” the minister said.

Chelsea substitute Demba Ba struck a dramatic late goal to seal a 2-0 home victory over Paris St Germain and a place in the Champions League semi-finals on the away goals rule on Tuesday.
PSG were heading for a first appearance in the last four since 1995 when Ba bundled in a loose ball after 87 minutes to clinch the tie, which ended 3-3 on aggregate.
Chelsea went ahead in a tense end-to-end battle at Stamford Bridge with a superbly-taken goal from substitute Andre Schuerrle after 32 minutes and they also hit the bar twice in two minutes early in the second half.
PSG, who won the first leg 3-1, dominated early on and Edinson Cavani missed two good chances in the closing stages which added to the almost unbearable tension on the night.
Chelsea, despite losing playmaker Eden Hazard to injury after 17 minutes when Schuerrle came on, finished strongly and were worthy winners on another memorable European night in west London.
In the night’s other match, lacklustre Real Madrid edged past Borussia Dortmund 3-2 on aggregate after slumping to a 2-0 defeat on Tuesday to advance to the Champions League semi-finals and stay on track for their tenth crown.
Two first half goals by Marco Reus, both coming from Real mistakes, gave Dortmund a deserved lead as the Spaniards, who had a penalty saved in the 17th minute, were left mesmerised by the Germans’ frantic pace.
Real, with top scorer Cristiano Ronaldo left on the bench due a minor knee injury, saw their 3-0 advantage from the first leg in Madrid almost evaporate in a disastrous first half for them.
Real, who twice lost to Dortmund in Germany in last season’s competition including a 4-1 thrashing in the first leg of their semi-final, briefly recovered in the second half before the Germans, last season’s runners-up, again surged forward, missing half a dozen clear scoring chances and also hitting the post.

THE Cyprus Land Development Corporation (CLDC) has been instructed by the government to study the Irish rent-for-mortgage model, the House Finance committee was told on Tuesday.
The committee convened to discuss the budgets of semi-government organisations, including the Cyprus Broadcasting Corporation (CyBC), the Cyprus Theatre Organisation (THOC) and the State Fairs Authority.
DIKO MP and acting committee chairman Angelos Votsis explained the extraordinary session was called to discuss budgets submitted to the House late.
With regard to the CLDC’s budget, Votsis pointed out that out of 240 available properties (flats or houses) all but 70 had been sold, and stressed the fact that defaulting debtors who bought CLDC properties add up to only six to seven per cent of a total of 1,700 properties sold.
“The corporation is trying to find solutions for debtors who are facing problems with their loan repayments,” he said. “It seems that the issue is heading in the right direction.”
According to Votsis, the CLDC has been instructed by the government to study the Irish model and prepare recommendations on the ‘rent-for-mortgage’ scheme, as discussed in the President’s meeting with the National Council for the Economy on Tuesday.
At the same time, he said, the potential for transforming this semi-governmental organisation into an organisation that would manage state property was being examined.
Asked to clarify whether the CLDC’s transformation was in any way connected to the President’s strategy to prevent foreclosures, Votsis said that in the Finance committee’s view an effort is being made to avert repossessions through studying various options.
With regard to the CyBC’s budget, the committee’s acting chairman noted brutal budget slashes and a significant reduction in the level of state aid to the broadcaster.
He added that the CyBC’s budget fell to €30 million – from €50 million in 2009.
“From what the committee was told during the session, it is worth noting that while there appears to be no intention to reduce personnel – though this cannot be said for certain – the effort is for the CyBC to the perform the role that the law has entrusted it with,” he said.
Votsis expressed the hope that the broadcaster’s new board can strike a balance through which it can perform the duties of public broadcasting in the best and most cost-effective way.
Meanwhile, Votsis said the Privatisations Unit will be managing the State Fairs Authority’s assets as it is being wound down.

By George Psyllides
THE state should buy non performing loans (NPLs) from banks and implement a rent to mortgage scheme, a senior government advisor said on Tuesday, as a way to protect primary residences and small business premises.
The matter was discussed during a meeting of the national council on the economy with President Nicos Anastasiades, which also looked into setting up a bad bank.
“What the president also agreed to is that we should not reject something before we know exactly what the consequences would be,” Christoforos Pissarides said, adding that studies were underway into the matter.
On protecting primary residences, Pissarides said they discussed a suggestion for the state to buy NPLs with the borrower remaining in the property and paying rent to the state, which will be the owner.
Pissarides said this solution could be used for specific sections of the population who cannot service their loans, like the unemployed.
“What we are trying to do is find a way to protect the primary residence without bringing more trouble on the banking system,” he said. “It is something difficult.”
Pissarides suggested that international lenders could contribute if the state could not afford such an endeavour.
He also suggested that NPLs could be bought by investment funds as long as people got to keep their homes.
“I do not see any risks provided there is assurance that the owner would not be thrown out of the house,” he said.
Pissarides warned that if banks were unable to use a house as collateral for a loan it would be a step backwards.
“We know very well that for the Cypriot economy to recover it needs healthy banks that can start lending to private individuals and businesses.”
Ruling DISY has managed to get an opposition bill protecting primary residences shelved for the time being.
An International Monetary Fund report published last week argued in favour of facilitating asset seizures by banks as an effective remedy for spiralling NPLs.
The report diagnosed the issue of NPLs as a “key challenge” to the economy, reporting that they have reached 50 per cent of total loans – at €22 billion, or 135 per cent of GDP.
The IMF also called on legislators to put in place a “strong legal framework to facilitate foreclosures.”
Deputy government spokesman Victoras Papadopoulos said a sense of panic had been created that was not justified.
“No main residence foreclosure is expected to take place in the near future, no property recovery has taken place so far,” Papadopoulos said.
Papadopoulos said the government was preparing a series of bills to regulate the primary residence issue.
The bills concern the financial commissioner, rent for mortgage, and solvency of individuals and companies, an “exceptionally anachronistic” law.
Details will be announced in a few weeks, Papadopoulos said.

President Nicos Anastasiades on Wednesday chaired the first-ever e-government cabinet meeting.

Each minister was given a laptop with a special interface with electronic access to cabinet affairs for easy transfer of digital documents.

“The system provides several tools, such as storage, history of previous versions of documents, data security, as well as indexing and retrieval of documents,” a statement said…

“Also, the system supports real-time updating and recalling of  documents and procedures.”

The move into the 21^st century is part of the state’s e-government programme, which envisions a paperless system.

“The productive use of electronic management and handling of documents should ensure multiple and significant savings,” the announcement added.

“The ultimate goal is to simplify procedures and reduce red tape and costs,”

Existing resources were used to set up the system and there was no additional cost to the state, the cabinet announcement said.

By Michael Holden

A post-mortem examination into the death of Peaches Geldof, the second daughter of Band Aid founder and musician Bob Geldof, has proved inconclusive “pending toxicology tests”, British police said on Wednesday.

Geldof, 25, a media and fashion personality in her own right and a mother of two young children, was found dead at her home in Wrotham, Kent, in southern England, on Monday.

Kent Police said they were treating it as a “non-suspicious but unexplained sudden death” but added investigations would continue following the inconclusive post-mortem.

“The result of a toxicology report can take several weeks,” police said in a statement.

When these results are known a coroner will decide whether there needs to be an inquest, an official inquiry held in Britain when someone dies unexpectedly.

Peaches was the daughter of television presenter Paula Yates and Bob Geldof, the Irish singer who rose to prominence as the leader of the 1970s-1980s band the Boomtown Rats, and later organised the charity Band Aid and the Live Aid concerts to raise money for famine relief in Ethiopia.

Bob Geldof said the loss of Peaches, the latest untimely death to befall the family, had left them “beyond pain”.

Peaches was only 11 when she and her two sisters, Pixie and Fifi Trixibelle, lost their mother.

Yates was married to Geldof from 1986 to 1996 but left him for Australian rock star Michael Hutchence, who committed suicide in 1997. Yates died three years later from a heroin overdose, aged 41.

After Yates’s death, Geldof brought up Tiger Lily, Yates’s daughter with Hutchence, alongside her three half-sisters.

Making an early debut in the London glamour and society scene, Peaches wrote articles for British national newspapers from the age of 14, and was often seen partying and clubbing in London’s vibrant night scene.

After becoming a mother she left the party scene behind and at the time of her death was a columnist for the Mother & Baby magazine. In her last column, under the headline “Being a mum is the best thing in my life”, she wrote she was “happier than ever”.

“Before having two fat little cherubs under two … I lived a life of wanton wanderlust,” she said. “With fun-loving friends from Los Angeles to London, I was lost in a haze of youth and no responsibilities.”

But, she had become bored of her previous lifestyle but said motherhood had initially left her “friendless” and “alienated and abandoned”, she wrote.

“Now, with a new-found group of mummy mates, both locally and online … I’m happier than ever. Right now life is good. And being a mum is the best part of it,” she said.

Peaches’ last Twitter post, on Sunday, was a photograph of herself and her mother.

“My beloved wife Peaches was adored by myself and her two sons … I shall bring them up with their mother in their hearts every day. We shall love her forever,” her husband, rock musician Thomas Cohen said after her death.

By Angelos Anastasiou

Failed Laiki Bank’s former strongman Andreas Vgenopoulos has lashed out at Tuesday’s claims by members of the House Ethics committee that loans of millions to companies his investment company (MIG) managed had been written off by the bank.

In a written statement on Wednesday, the Greek business magnate called the committee’s chairman Demetris Syllouris and member Irini Charalambidou “serial slanderers” and their claim that a €29 million loan by Laiki to Delta – a MIG subsidiary – has been written off a “monstrous lie.”

“I call on them to publicise any evidence backing their allegation or immediately withdraw their claim, apologise and request the resignation and prosecution of those who misled them,” the statement said.

He also alluded to last November’s correspondence he had with the committee, which had asked him to appear before it as it looked into the causes of the country’s economic meltdown. Vgenopoulos had agreed to present his case before the committee and answer any questions the members had, but only after he was allowed five hours to argue his points. The committee had declined his demand as “the House does not accept conditions from its guests.”

“From what I read I realised why [the Ethics committee] had been so eager to prevent me from stating my opinions. Of course, what they and their friends fear will happen to them, because the moment when the public in Cyprus will learn the whole truth is nearing,” Vgenopoulos warned.

The statement went on to provide explanations on one of the points raised by the committee’s interim report, leaked to the media last week. The report referred, among others, to a Greek parliamentary committee that had drafted a report on suspected irregularities relating to loans granted by Laiki, which were later used to buy shares in MIG, and then forwarded it to the Greek Supreme Court for further investigation.

“Up to this point, the mudslinging is complete and the slanderers are satisfied,” Vgenopoulos’ statement said. “But they fail to mention that the Supreme Court prosecutor conducted a two-year long criminal investigation that determined the absence of evidence or suspicions of criminal activity, and of course that the case was closed.”

Among lawmakers, Vgenopoulos is widely considered one of the main players in the collapse of the banking system in Cyprus, following his triumphant takeover of Laiki bank in 2006 until his inglorious fall in 2011, when he was forced to resign his post as the bank’s boss by then Governor of the Central Bank Athanasios Orphanides.

But despite his vehement denials and cries of a conspiracy to silence him in order to cover up the true culprits, some of his major banking moves have been called into question, including the 2010 decision to merge the Cyprus-based lender with Greek bank Marfin Egnatia, which increased the bank’s exposure to Greek sovereign debt.

By Mark Lamport-Stokes

As the first of the season’s four major championships, the Masters has always been the most keenly anticipated, a veritable golfing ‘rite of spring’ that brings together the game’s leading players in Augusta, Georgia.

This year, that sense of expectation is especially heightened with the list of likely winners deeper than ever and multiple champion Tiger Woods a notable absentee for the first time in his career after having surgery to repair a pinched nerve in his back.

Fellow American Phil Mickelson, another perennial contender at Augusta National, is also facing injury concerns of his own, leaving golf fans to expect even more of the unexpected at the April 10-13 tournament.

Woods, who has claimed the coveted Green Jacket four times, has struggled with back pain since last August and he withdrew from last month’s Arnold Palmer Invitational, his final tune-up event, to get ready for the Masters before that bid was aborted.

“This is frustrating, but it’s something my doctors advised me to do for my immediate and long-term health,” said Woods.

Mickelson has won three times at Augusta National, most recently in 2010, but his preparations for the year’s opening major were rocked when he pulled out of last week’s Texas Open during the third round with a pulled abdominal muscle.

“My back’s feeling great, my body’s been feeling great. I felt as good as I have all year,” said the left-hander, whose decision to withdraw seemed purely precautionary. “My speed is back, I was hitting the ball hard, driving it great.

“I pulled a muscle on my downswing trying to hit the ball hard … it just killed and it wouldn’t subside for 10 or 12 seconds … there’s really not much you can do for a pulled muscle. I hope I’ll be OK.”

Whether or not Mickelson is a significant factor, the possibilities are seemingly endless when it comes to likely winners after Sunday’s final round.
The last seven editions have produced seven different champions and golf’s extraordinary depth of talent has been showcased on the 2013-14 PGA Tour where there have been 17 different winners from the 20 tournaments so far completed.

“Everybody that tees it up here is a great player,” said American Matt Kuchar, who was tied for the lead with nine holes remaining at the Texas Open on Sunday before finishing two strokes behind the triumphant Steven Bowditch.

“It’s not as if there’s Roger Federer going up against somebody you haven’t heard of,” said Kuchar. “It’s a lot different in golf.
“The guys that play really good quality golf from top to bottom are the kind of guys that enter the tournament (any PGA Tour event), so it’s tough. You know that you got to play great to win out here.”

Short game wizardry and the ability to minimise three-putts are musts for any would-be Masters champion at an iconic venue renowned for its lightning-fast, heavily contoured greens.

The list of potential champions next week is a long one, as demonstrated by the ‘unlikely’ Masters victories of Canada’s Mike Weir in 2003, American Zach Johnson in 2007 and South African Trevor Immelman in 2008.

Twice major winner Rory McIlroy will be eager to atone for his nightmarish final-round meltdown three years ago when he squandered a four-shot overnight lead with a closing 80.
The Northern Irishman will also be champing at the bit to prove that his struggles on and off the course for much of his 2013 campaign are now behind him, and his form so far this year has been encouraging.

McIlroy, 24, earned himself a timely boost with his victory at the Australian Open in December and this season he has been in title contention in five of the six strokeplay events he has entered.

Back-to-back Masters victories have been rare with only three players accomplishing the feat since the tournament was launched in 1934. Jack Nicklaus was the first to do so in 1966, and he was followed by Nick Faldo, in 1990, and Woods, in 2002.

Defending champion Adam Scott of Australia will have a good opportunity next week to add his name to that illustrious company, having climbed to number two in the world rankings with a superb run of form late last year.

He clinched his 10th PGA Tour title at The Barclays in August before ending his season by winning the Australian PGA and Australian Masters, partnering Jason Day to land the World Cup team event and finishing second at the Australian Open.

Though Scott has not triumphed since, he has recorded three top-10s in his last five PGA Tour starts and will tee off in Thursday’s opening round at Augusta National among the title favourites.

“The work I’m putting in keeps me up there (contending) on a more regular basis,” said Scott, who became the first Australian to win the Masters by edging out Argentina’s Angel Cabrera in a thrilling playoff.
“It’s been an incredible experience being the Masters champion for the last 12 months, and it’s something I’ll be trying to do again.”

By Michele Kambas

Cyprus expects to return to international markets late next year but cannot rule out testing the waters earlier to gauge the appetite for Cypriot debt, President Nicos Anastasiades said on Wednesday.

In an exclusive interview with Reuters, Anastasiades said an “economic dependency” on Russia – common with other EU member states – could have an impact should the bloc decide to tighten sanctions on Moscow in its standoff with Ukraine.

He also said there should be offsetting measures for those countries whose economies could be directly hit if the crisis escalates and further sanctions are imposed. That could include leaving it to the discretion of member states over what additional curbs to apply, he said.

Just a year ago, Cyprus teetered on the brink of default from a banking system crippled by its exposure to Greece and a cash-starved government deprived of access to international markets.

It became the first nation in the history of the eurozone to impose capital controls to prevent a collapse of its banking system.

Cyprus lost a foothold in markets in May 2011 after yields on benchmark 10-year bonds spiked rapidly. But from a high of close to 15 per cent last March, yields have now tumbled, quoted at 5.13 per cent on Wednesday, according to Reuters Eikon data.

“We hope to be in a position to enter the markets towards the end of 2015. It is a very short period of time compared to countries under similar (bailout) programmes,” said Anastasiades, who assumed the presidency last year just two weeks before being catapulted into handling the island’s worst peace-time crisis since independence from Britain in 1960.

Asked if the republic could consider putting out feelers with a small issue beforehand, Anastasiades said that could be considered taking into account a further reduction in spreads.

“It is something which we could look at, at a time when we feel it would be successful to try,” he said.

Capital controls are gradually being dismantled, Anastasiades said. By the end of May domestic controls were expected to be fully eased, before full relaxation of transactions abroad by the end of the year.

“I believe we are on the right path…we have managed to overturn forecasts which were considerably worse than what we eventually achieved,” he said.

Defying forecasts of a 9 per cent slump in output in 2013, Cyprus’ economy, among the smallest in the 18 nation euro zone, contracted by 5.4 per cent last year. The European Commission expects a 4.8 per cent contraction this year before a gradual recovery in 2015.

But the island still suffered high unemployment, with thousands of Cypriots now on state assistance. Coaxing foreign investment back into the country was a priority, Anastasiades said.

RUSSIA

Among eurozone rescues, Cyprus stands out for its treatment of depositors who were forced to forfeit uninsured savings to prop up failing banks. This formula is now the template for future bank rescues throughout the EU.

But while one bank, Laiki, went bust, the second, Bank of Cyprus now has many wealthy Russians on its board whose deposits were converted to equity, highlighting the depth of ties between the island and Russia.

Since Russia’s annexation of the Black Sea peninsula of Crimea, the European Union has imposed sanctions against the closest allies of President Vladimir Putin, and Group of Seven governments have suspended top-level contacts with Russia.

Further sanctions are being prepared in case Russia’s conflict with Ukraine escalates, but these could leave Cyprus in a bind.

“It is well known that as a result of the long-running ties we have with Russia that there is an economic dependency, if you like, and it does not only apply to us,” Anastasiades said.

He said the EU should take into account repercussions on the economies of its member states from any additional policy action and ways to handle that.

Otherwise, each EU member state should use its own discretion in applying additional sanctions against Moscow.

“It is not only we who are clear about this, but other European states too. Any new package of sanctions against Russia – and I do not wish for this to happen – must take into account the particular circumstances, the damages, and generally the consequences to each country,” Anastasiades said.

“There should be a series of offsetting measures, but also the right of each country to choose… regarding implementation, and of what measures,” he said.

By Elizabeth Daley

A 16-year-old student wielding two knives went on a stabbing rampage in the hallways of a Pittsburgh-area high school early on Wednesday, injuring 20 people, about half of them seriously, officials said.

The attacker moved stealthily through Franklin Regional High School, stabbing his victims in the torso and slashing arms and faces before anyone realized what was happening, students and officials said. Some of the injured taken to nearby hospitals were in critical condition, doctors said.

Students described a scene of panic, with the school hastily evacuated after a fire alarm was pulled. The unidentified sophomore suspected in the attack was in police custody, said Tom Seefeld, chief of police in Murrysville, Pennsylvania.

The attacks began around 7.13 am EDT (1113 GMT) in several classrooms and hallways of the school in Murrysville, 32 km east of Pittsburgh, officials said.

An armed security officer subdued and arrested the attacker with help from the principal, Seefeld said.

Freshman Josh Frank said he did not initially realize that anyone had been stabbed, but fled when he heard screaming.

“He did it so stealthily that at first no one knew what was happening,” Frank said. “We heard a girl scream bloody murder. Then two seniors were running down the hall and we followed them out of the school.”

A total of 21 people, most of them 14 to 17 years old, were transported to area hospitals, four by medical helicopters. Several had life-threatening injuries, with nine in critical condition, hospital officials said.

“Patients who are stabbed in the abdomen and chest by definition have life-threatening injuries,” said Chris Kauffman, director of trauma at Forbes Regional Hospital, where some of the injured were treated.

Doctors said a female student helped save a male schoolmate by applying pressure to his wound until emergency responders arrived.

“She displayed an amazing amount of composure to help that friend who was having pretty significant bleeding at that point,” said Dr. Mark Rubino, of Forbes Regional Hospital.

SUSPECT TREATED

The suspect was also being treated for injuries to his hands, Seefeld said.

As they were reunited with parents near the hilltop high school in the relatively affluent Pittsburgh suburb with a population of about 20,000, teens spoke about the incident.

Michael Float, an 18-year-old senior, described running down a staircase and finding a friend badly wounded.

“There was a pool of blood,” Float said. “He had blood pouring down the right side of his stomach,” and a teacher was applying pressure on the wound.

Zak Amsler, a 17-year-old junior, said the attack occurred just before his first class was about to begin.

“I saw a girl with blood running out of her sleeve,” Amsler said as he waited to pick up his younger sister, a student at the nearby middle school. “It was pretty mind-blowing.”

Pennsylvania Governor Tom Corbett said he had ordered state police to help local law enforcement respond to the incident. The FBI also said it had deployed agents to work with local law enforcement.

“As a parent and grandparent, I can think of nothing more distressing than senseless violence against children,” Corbett said.

Gennaro Piraino, superintendent of the Franklin Regional School District, said the high school would be closed for the next two to three days while police conduct an investigation.

By Joe Brock

A South African prosecutor forced Oscar Pistorius on Wednesday to look at a forensic photograph that showed the head of his girlfriend Reeva Steenkamp after it was blown open by a hollow-point bullet fired by the Olympic and Paralympic track star.

In a dramatic opening to his cross-examination of Pistorius, prosecutor Gerrie Nel made him admit he had killed Steenkamp then later confronted him with the photograph showing the side and back of her skull, her hair matted with blood and brains.

“Have a look there. I know you don’t want to because you don’t want to take responsibility,” Nel said to gasps from the packed public gallery.

“Take responsibility for what you have done,” Nel persisted, his voice rising almost to a shout.

Pistorius responded by burying his head in his hands in the witness stand, rocking from side to side and weeping.

The double amputee sprinter, once revered across the world for his triumph over adversity, faces life in prison if convicted in the Pretoria High Court of the murder of Steenkamp, a 29-year-old law graduate and model.

His defence hinges on his contention that he thought he was firing at an intruder when he shot Steenkamp through a toilet door in his luxury Pretoria home on Feb. 14 – Valentine’s Day – last year.

“ZOMBIE STOPPER”

During the 18-day trial, Nel, renowned as one of South Africa’s toughest state attorneys with the nickname ‘The Pitbull’, has sought to show the 27-year-old as a gun-obsessed hot-head.

Early in his questioning, he asked Pistorius if he knew what a “zombie stopper” was, to which the defendant answered no.

After a brief adjournment, the court then viewed video footage broadcast before the trial by Britain’s Sky News of Pistorius firing a .50 calibre handgun at a watermelon at a shooting range.

As the melon disintegrates, Pistorius says off-camera: “It’s a lot softer than brains. But (bleep) it’s like a zombie stopper.”

Nel then pushed the track star, saying he had shot the melon because he wanted to see what a bullet hitting a person’s head looked like.

“You know that the same happened to Reeva’s head. It exploded. I’m going to show you,” he said, before projecting the forensic photograph of Steenkamp’s head on the court monitors.

Steenkamp was hit by three of four 9 mm rounds fired by Pistorius through the toilet door. One hit her behind the right ear, killing her almost instantly, pathologists had earler told the court.

Pistorius acknowledged responsibility but refused to lift his head.

“I don’t have to look at a picture. I was there,” he said.

Television stations carrying the feed from the court apologised to viewers as the graphic image was broadcast live.

BALCONY CRUCIAL

With no direct witnesses, Nel’s main task is to pick holes in Pistorius’ testimony and cast doubt on his statements about a perceived burglar, a common fear in crime-obsessed South Africa.

Crucially, he forced Pistorius to concede that he did not go out on to the balcony in the middle of the hot and humid night to bring two fans inside – the instant during which, he said in a sworn affidavit submitted at his bail hearing, that he believed Steenkamp went to the toilet without him realising.

“You can’t get away, Mr. Pistorius,” Nel said.

Pistorius was forced to concede: “My memory isn’t very good at the moment.”

Earlier, he described his frantic attempts to revive Steenkamp after he found her lying barely alive on the toilet floor and how she had died minutes later in his arms, her blood pouring over his body.

“I checked to see if she was breathing and she wasn’t,” he said. “I could feel the blood was running down on me.”

After several attempts, he managed to carry Steenkamp down stairs where neighbours tried to administer first aid before paramedics arrived.

But Pistorius said he knew that Steenkamp – with whom he said he was planning to buy a house – was already dead.

“Reeva, Reeva had already died whilst I was holding her, before the ambulance arrived, so I knew there was nothing they could do for her.”

By Toby Davis

BAYERN Munich kept alive their Champions League title defence by suppressing a resilient Manchester United to reach the semi-finals on Wednesday, while the power shift continued in Spain as Atletico Madrid edged past La Liga rivals Barcelona.

United gave the Germans a scare when Patrice Evra’s thunderbolt finish put them ahead in their quarter-final second leg, but goals from Mario Mandzukic, Thomas Mueller and Arjen Robben saw them safely through with a 3-1 win on the night and a 4-2 aggregate success.

La Liga leaders Atletico confirmed their current status as the top club in Spain by ousting Barcelona after Koke’s early goal proved enough to secure a 1-0 win and 2-1 victory over the two legs.

After a cagey first half in Munich, United’s Evra stunned the home crowd with a powerful drive in the 57th minute that left Bayern keeper Manuel Neuer rooted to the spot on its way into the top corner.

The visitors’ celebrations had barely died down, however, when Bayern drew level straight from the kick-off after 22 seconds with Mandzukic evading the attentions of United’s centre backs to glance a header past David De Gea.

Mueller sidefooted in from close range to put them ahead in the tie and Robben ended a mazy run across the penalty area by finishing low into the bottom corner via a deflection off United defender Nemanja Vidic.

In Madrid, it was one-way traffic in the early stages as Atletico tore into Barcelona, scoring after five minutes when Koke side-footed into an empty net at the far post moments after Adrian Lopez had hit the post.

It could have turned into a rout as David Villa hit the woodwork twice more in the first half, but their failure to add to their lead ensured a nervous finish.

Bayern and Atletico will be joined in Friday’s semi-final draw by Chelsea, who knocked out Paris St Germain on away goals after a 3-3 aggregate draw on Tuesday and Real Madrid, who beat Borussia Dortmund 3-2 over two legs.

THE fire service had to scramble to provide assistance to homeowners and drivers yesterday, as torrential rain flooded dwellings and roads in Nicosia in the afternoon.

The service received 60 calls for help, mainly to pump water out of flooded basements but also to free drivers who got trapped in the capital’s water-logged roads. Off-duty personnel were also called in to help deal with the deluge.

The owners of a small furniture business ruined by the water blamed the Nicosia municipality, which they claimed had not cleared the drains.

“The municipality only gives people fines,” a man said, bemoaning the bad state of the roads in the area.

More rain was expected for the rest of the week. (Photo: Christos Theodorides)

By Staff Reporter

GREEK Cypriot negotiator Andreas Mavroyiannis has said the US erred in backing the Annan plan in 2004 instead of allowing the two sides to work out an agreement on their own.

In an interview with the Washington Times, Mavroyiannis said:  “Everybody recognises now that it was a mistake.”

He said, however, the current role of the US was positive and that Washington had been acting as a more honest broker and “as friends of the process.”

The U.S. is currently engaged in efforts to support President Nicos Anastasiades’ push to have confidence-building measures (CBM) or gamechangers, run parallel to the negotiations to help boost the talks. The priority CBM for the Greek Cypriots is the return of the fenced-off area of Famagusta, known as Varosha.

Deputy Assistant Secretary of State Eric Rubin was in Nicosia this week to discuss the ‘gamechangers’ and spoke of mechanisms and initiatives the US was working on to help move the negotiations forward.

Mavroyiannis told the Washington Times that he and his Turkish Cypriot counterpart Kudret Ozersay – who do the groundwork for the leaders -  were currently going through a “screening process” that has identified a lot of  divergences” between the two sides.

“I want to caution against being overoptimistic, not because we are not determined, but we have not seen any concrete results yet,” he said.

“We are still stuck in the beginning of the process.”

He said it was too early to predict how long the process would take.

“At the same time, we all understand that there is a window of opportunity which will not last forever,” he added.

Mavroyiannis on Tuesday criticised Ozersay for breaking the confidentiality of the talks. He also denied Ozersay’s claim that the Greek Cypriot side was trying to renegotiate convergences agreed during the previous round of talks under Mehmet Ali Talat and Demetris Christofias.

The Greek Cypriot negotiator told the American newspaper that the discovery of hydrocarbons off Cyprus could serve as a catalyst but ruled out discussing energy exploration with the Turkish Cypriot side at this point.

“US interest in the process is driven by the hope that the gas discoveries open avenues of cooperation and restore at least a working relationship between Israel and Turkey,” he said.