By Gayatri Suroyo and Wilda Asmarini

Indonesian rescuers believe they have found the wreck of a crashed AirAsia plane on the ocean floor off Borneo, after sonar detected a large, dark object beneath waters where debris and bodies were found floating.

Ships and planes had been scouring the Java Sea for Flight QZ8501 since Sunday, when it lost contact during bad weather about 40 minutes into its flight from the Indonesian city of Surabaya to Singapore.

Indonesian rescuers have recovered various bits of debris, including luggage, and seven bodies floating in shallow waters.

“It’s about 30 to 50 metres (100 to 165 feet) underwater,” Hernanto, head of the search and rescue agency in Surabaya, said of the object on the sea bed.

Authorities in Surabaya were making preparations to receive and identify bodies, including arranging 130 ambulances to take victims to a police hospital and collecting DNA from relatives.

“We are praying it is the plane so the evacuation can be done quickly,” Hernanto said.

Most of the people on board were Indonesians. No survivors have been found.

Officials said waves two to three metres (six to nine feet) high and winds were hampering the hunt for wreckage and preventing divers from searching the crash zone.

Among the bodies found on Wednesday was a flight attendant.

The fully clothed bodies could indicate the Airbus A320-200 was intact when it hit the water and support a theory that it suffered an aerodynamic stall.

“The fact that the debris appears fairly contained suggests the aircraft broke up when it hit the water, rather than in the air,” said Neil Hansford, a former pilot and chairman of consultancy firm Strategic Aviation Solutions.

Indonesian President Joko Widodo said his priority was retrieving the bodies.

“I feel a deep loss over this disaster and pray for the families to be given fortitude and strength,” Widodo said in Surabaya on Tuesday after grim images of the scene in the Java Sea were broadcast on television.

Widodo said AirAsia would pay an immediate advance of money to relatives, many of whom collapsed in grief when they saw the television pictures from the search.

AirAsia Chief Executive Tony Fernandes has described the crash as his “worst nightmare”.

About 30 ships and 21 aircraft from Indonesia, Australia, Malaysia, Singapore, South Korea and the United States have been involved in the search.

Singapore said it was sending two underwater beacon detectors to try to pick up pings from the black boxes, which contain cockpit voice and flight data recorders.

NO DISTRESS CALL
The plane, which did not issue a distress signal, disappeared after its pilot failed to get permission to fly higher to avoid bad weather because of heavy air traffic.

It was travelling at 32,000 feet (9,753 metres) and had asked to fly at 38,000 feet. When air traffic controllers granted permission for a rise to 34,000 feet a few minutes later, they received no response.

Online discussion among pilots has centred on unconfirmed secondary radar data from Malaysia that suggested the aircraft was climbing at a speed of 353 knots, about 100 knots too slow, and that it might have stalled.

Investigators are focusing initially on whether the crew took too long to request permission to climb, or could have ascended on their own initiative earlier, said a source close to the inquiry, adding that poor weather could have played a part as well.

A Qantas pilot with 25 years of experience flying in the region said the discovery of the debris field relatively close to the last known radar plot of the plane pointed to an aerodynamic stall. One possibility is that the plane’s instruments iced up, giving the pilots inaccurate readings.

The Indonesian captain, former air force fighter pilot with 6,100 flying hours under his belt, was experienced and the plane last underwent maintenance in mid-November, said the airline, which is 49 percent owned by Malaysia-based budget carrier AirAsia.

Three airline disasters involving Malaysian-affiliated carriers in less than a year have dented confidence in the country’s aviation industry and spooked travellers.

Malaysia Airlines Flight MH370 went missing in March on a trip from Kuala Lumpur to Beijing with 239 passengers and crew and has not been found. On July 17, the same airline’s Flight MH17 was shot down over Ukraine, killing all 298 people on board.

On board Flight QZ8501 were 155 Indonesians, three South Koreans, and one person each from Singapore, Malaysia and Britain. The co-pilot was French.

The AirAsia group, including affiliates in Thailand, the Philippines and India, had not suffered a crash since its Malaysian budget operations began in 2002.

By Louis Charbonneau

The U.N. Security Council on Tuesday rejected a Palestinian resolution calling for an Israeli withdrawal from the occupied West Bank and East Jerusalem and the establishment of a Palestinian state by late 2017.

The resolution called for negotiations to be based on territorial lines that existed before Israel captured the West Bank, East Jerusalem and the Gaza Strip in the 1967 Middle East war. It also called for a peace deal within 12 months.

Even if the draft had received the minimum nine votes in favor, it would have been defeated by Washington’s vote against it. The United States is one of the five veto-wielding permanent members.

There were eight votes in favor, including France, Russia and China, two against and five abstentions, among them Britain. Australia joined the United States in voting against the measure.

U.S. Ambassador to the United Nations Samantha Power defended Washington’s position against the draft in a speech to the 15-nation council by saying it was not a vote against peace between Israel and the Palestinians.

“The United States every day searches for new ways to take constructive steps to support the parties in making progress toward achieving a negotiated settlement,” she said. “The Security Council resolution put before us today is not one of those constructive steps.”

She said the text was “deeply imbalanced” and contained “unconstructive deadlines that take no account of Israel’s legitimate security concerns.” To make matters worse, Power said, it “was put to a vote without a discussion or due consideration among council members.”

She did not spare Israel either. “Today’s vote should not be interpreted as a victory for an unsustainable status quo,” Power said, adding that Washington would oppose actions by either side that undermined peace efforts, whether “in the form of settlement activity or imbalanced draft resolutions.”

Jordanian Ambassador Dina Kawar, the sole Arab representative on the council, expressed regret that the resolution was voted down, while noting that she thought council members should have had more time to discuss the proposal.

The defeat of the resolution was not surprising. Washington, council diplomats said, had made clear it did not want such a resolution put to a vote before Israel’s election in March.

The Palestinians, the diplomats said, insisted on putting the resolution to a vote despite the fact that it was clear Washington would not let it pass. Their sudden announcement last weekend that Ramallah wanted a vote before the new year surprised Western delegations on the council.

PALESTINIAN FRUSTRATION
In order to pass, a resolution needs nine votes in favor and no vetoes from the council’s five permanent members.

The European and African camps were split in the vote. France and Luxembourg voted in favor of the resolution while Britain and Lithuania abstained. Among the Africans, Chad voted yes while Rwanda and Nigeria abstained.

The Palestinians, frustrated by the lack of progress in peace talks, have sought to internationalize the issue by seeking U.N. membership and recognition of statehood via membership in international organizations.

Palestinian observer Riyad Mansour thanked delegations that voted for the resolution, noting that lawmakers in a number of European countries have called for recognition of Palestine. He said it was time to end the “abhorrent Israeli occupation and impunity that has brought our people so much suffering.”

“It is thus most regrettable that the Security Council remains paralyzed,” he said.

Mansour added that the Palestinian leadership “must now consider its next steps.” The Palestinians have threatened to join the International Criminal Court, which they could then use as a forum to push for war crimes proceedings against Israel.

In a brief statement, Israeli delegate Israel Nitzan said the Palestinians have found every possible opportunity to avoid direct negotiations and brought the council “a preposterous unilateral proposal.”

“I have news for the Palestinians – you cannot agitate and provoke your way to a state,” he said.

French Ambassador Francois Delattre said Paris would continue its efforts to get a resolution through the council that would help move peace efforts forward.

“France regrets that it isn’t possible to reach a consensus today,” he said, noting that he voted for the resolution despite having reservations about its contents. “Our efforts must not stop here. It is our responsibility to try again.”

An earlier Palestinian draft called for Jerusalem to be the shared capital of Israel and a Palestinian state. The draft that was voted on reverted to a harder line, saying only that East Jerusalem would be Palestine’s capital and calling for an end to Israeli settlement building.

The Israeli government had said that a Security Council vote, following the collapse in April of U.S.-brokered talks on Palestinian statehood, would only deepen the conflict.

Israel, which pulled troops and settlers out of the Gaza Strip in 2005, has said its eastern border would be indefensible if it withdrew completely from the West Bank.

By Masayuki Kitano

The dollar was on track to end 2014 with a gain of 12 percent against a basket of major currencies, and anticipated U.S. interest rake hikes may strengthen its appeal in the new year.

This year’s gain will be the dollar’s largest since 2005, when it climbed nearly 13 percent.

The divergence between the U.S. Federal Reserve’s path toward rate hikes and stimulative monetary policies in the euro zone and Japan has helped the dollar index hit an eight-year high this year, and is likely to remain a key theme in 2015.

A woman was accidentally shot and killed at a Walmart store in northern Idaho on Tuesday when her 2-year-old son pulled a loaded handgun from her purse that then went off, a county sheriff said.

The 29-year-old woman was shopping at a Walmart in Hayden, Idaho, with the toddler seated in her shopping cart when the incident occurred, Kootenai County Sheriff Ben Wolfinger said in a written statement.

Sheriff’s officials said investigators were still processing the scene of the shooting, which took place shortly after 10 a.m. in the store’s electronics department.

The woman’s identity was withheld by authorities pending notification of next of kin.

“A very sad incident occurred at our store today in Hayden involving the death of a female customer. We are working with the Kootenai Sheriff’s department as they investigate what happened,” Walmart spokeswoman Brooke Buchanan said.

Buchanan said the store had been closed and would remain so until further notice.

Hayden is a community of about 10,000 people located in Kootenai County, north of Coeur d’Alene.

PRESIDENT Nicos Anastasiades on Wednesday underwent a check-up at the American Heart Institute in Nicosia following his heart surgery in the US in early December.
It was his first check-up since his return from New York some ten days ago where he had corrective surgery on his mitral and triglochin valves at Mount Sinai hospital.
“It is going better than the doctors anticipated,” Anastasiades told reporters outside the clinic.
The president said that he was viewing the new year positively and that just like the way he was leaving behind his health difficulties, the same was true for the island. In 2014 conditions were created for a hopeful 2015, he said.
“No one can say that we have overcome the difficulties as long as there are unemployed people and food banks. The problems are the same but we have created two basic conditions, the stability of the financial system and the credibility of the government’s borrowing capabilities on the international markets,” Anastasiades said of the coming 12 months.
“We were talking about a state ready to collapse and in less than a year and a half we managed to return to the international markets, create trust in the state while our banks achieved recapitalisation and passed the stress tests successfully,” he said.
“I see 2015 through a positive lens and always through hard work and by being consistent with our obligations.”

By Maria Gregoriou

Let’s move away from December and turn to the start of January when everything seems brand new and we want to hold on to that party spirit of Christmas and New Year for just a little bit longer.

As expected, the first few days of the year are full of music and one man who really was born to make music, Cayetano (or George Bratanis) from Thessaloniki, will be spinning some of his tracks on Saturday at Ammos Beach Bar in Larnaca.

Bratanis started his musical career at the age of 19 as a part of the band Strongilo Kitrino (The Round Yellow). The band received much success in 1996 with the release of their first album, which they toured with around Greece and Italy.

In 1999 Bratanis packed up, left the band and moved to Spain where he composed music for theatrical plays and films. While there he also toured the country and played as a session musician for a number of Spanish bands.

But in 2004 he decided it was time to move, so once again he packed his bags and left Spain in search of even more success and a career as a solo artist under the name Cayetano.

Now under a showbiz title, the artist released his first track, the vinyl EP Mr. White, while still living in Barcelona. His international recognition, however, came a little later in 2006 when he released the album Focused, which managed to get extensive airplay on many radio stations and was very high up on the list of likes for critics around the world. His following collaboration with Loopa Scava resulted in his next album Up & Down.

Cayetano has since received a nomination for the French Annual Prizes Prix Radiophonie, the first award for film scoring for the Swedish film Herr Holger, numerous remixes from the likes of Parov Stelar, Wax Tailor, and Mod X, has licensed his music to a diverse selection of media, and has given many, many live appearances.

His third album, The Big Fall, kept his success going as its tracks quickly climbed the iTunes and SoulSeduction.com charts. This album is where the artist stepped into a darker and more mature musical stage.

In October 2010 Cayetano released the album Back Home and four months later began the Back Home Tour. October seems to be the month for new starts for the artist as in October 2012 he released his next album Once Sometime. Getting right up to the present now, in January of 2014 the mixed version of his latest album hit the airwaves.

A lot of music for one night!

Cayetano
Live performance from the Greek musician. January 3. Ammos Beach Bar, Makenzy Beach, Larnaca. 11pm. Tel: 24-828844

By Ian Chadband

Chelsea will begin 2015 protecting a three-point lead in the Premier League title race but will heed the words of their grand old striker Didier Drogba who warns that it is simply not enough.

“We start again a new championship,” boomed the Ivorian, as Chelsea prepared to visit their fierce London rivals Tottenham on New Year’s Day, with champions Manchester City, at home against Sunderland, still snapping at their heels.

Everything bodes well for Jose Mourinho’s soaring side, not least the fact that on the seven previous occasions his teams have been leading their respective leagues at Christmas, they have always gone on to take the title.

Mourinho’s faithful old lieutenant Drogba, though, believes it will have to be a particularly special achievement for the ‘Special One’ to maintain that extraordinary sequence.

“I think it’s going to be tough,” Drogba said, reflecting on how Chelsea’s one-time eight-point lead has been whittled down.

Indeed, if City had not blown a 2-0 lead on Boxing Day to draw with Burnley, there would have now been only one point separating the leaders.

“We knew it was not over. A few years ago, I think we were 11 or 12 points in front of Man United and then they won the league,” Drogba said.

“So eight points or nine points – I don’t know how many points we had on top of Man City – I think it is not enough.

“I think now we start again a new championship. I think the game is on.”

Mourinho, happy to play up any conspiracy theory if it helps strengthen his players’ indignation, claimed after the draw at Southampton that a campaign to portray his team as divers was costing them crucial points.

Still, he could hardly be starting the year at a happier hunting ground, Chelsea’s domination over Spurs having been so pronounced in the Premier League era that their fans like to think of Tottenham’s White Hart Lane home as ‘Three Point Lane’.

Against Sunderland, City manager Manuel Pellegrini will be looking to avoid a repeat of what he felt was complacency in the Burnley slip-up.

Manchester United, seven points behind their city neighbours in third place, visit Stoke City while the New Year match of the day could be at St Mary’s where Southampton and Arsenal, fourth and fifth respectively on 33 points, lock horns.

By George Psyllides
WHILE worldwide tourist arrivals rose by 60 per cent in the past 13 years, Cyprus has seen an 11 per cent decline, a European Commission report said, suggesting it was time for the island to rethink its strategy to reverse the current trend.
“Growth in the number of tourist arrivals in Cyprus has been weaker than in its main EU competitors Greece, Spain, Malta and Croatia, or than its neighbouring competitors Turkey and Tunisia, and has not been in line with the sharp increase in tourist arrivals worldwide,” the report, drafted by the Directorate General Economic and Financial Affairs, said.
It compares Cyprus with Greece and Spain where tourism also constitutes a large part of their economies.
“In Spain and Greece, tourist arrivals increased by around 20 per cent and 10 per cent from 2001-2012, respectively, over almost the same period.”
While worldwide tourist arrivals increased by 60 per cent, from 2001 to 2013, arrivals in Cyprus were down 11 per cent, the report said.
To revive and regain competitiveness, Cyprus needs to define its vision, and perhaps choose between attracting more high-spending tourists, therefore increasing overall non-price competitiveness elements, including quality, or attracting more low-spending tourists, thus competing more on price levels.
Short- and medium-term priorities need to be defined to support the long-term vision for the sector.
“The lack of priorities might be explained by the weak governance structure and a rigid regulatory framework,” the report said.
Among the structural shortcomings was the fact that hotels and restaurants in Cyprus were on average slightly larger than in Spain and Greece – around half the workforce in the industry was employed at hotels and restaurants with more than 50 employees.
This, the report said, may suggest a more relative importance of a few large players and also that competition in the sector could be rather low.
It also noted the lack, since 2008, of foreign direct investment in the Cypriot accommodation and food services, which provided around 7.0 per cent of total real gross value added and employed around 10 per cent of total employment in 2013.
The situation however, was similar in Greece and Spain, which may suggest that investment in the tourism sector is predominantly domestic.
The report said the high number of hotel rooms relative to the population may not be the problem. Instead, it could be the quality of hotels and restaurants.
Using the number of beds at five-star hotels as an indicator for their quality may suggest that quality in Cyprus and Spain was similar, the report said.
“Nonetheless, the higher supply of beds in Cyprus implies a lower share of five-star beds in Cyprus than in Spain, suggesting that the average quality of beds in Cyprus could therefore be lower than in Spain.”
It said that the lack of Michelin restaurants—Spain has 150 and Greece six — could suggest a relatively low quality of restaurants though “it is important to note that the haute cuisine of Michelin restaurants does not always necessarily prove to be an appropriate indicator for quality in countries such as Cyprus, where traditional cooking with simple ingredients dominates.”
“At the same time, prices for accommodation in Cyprus are among the highest in the EU, higher than in Spain and, to a lesser extent, than in Greece,” the report said, which was at odds with possibly lower quality of the accommodation in Cyprus than in Spain.
“A (2013) study by PWC shows that tourists having visited Cyprus in 2012 were the least satisfied with the country’s value for money, suggesting an issue of price competitiveness.”
Overall, the cost structure of the Cypriot tourism sector did not compare unfavourably to Spain and Greece, the report said,
Labour costs were similar to Greece, and lower than in Spain, more so since the reductions in 2013.
The island does compare “somewhat” unfavourably on electricity prices, particularly to Greece.
The report suggests that Cyprus’ strategy to reverse the trend must be consistent with its comparative advantages and must accommodate its unique profile.
Cyprus can overcome these impediments and therefore focus on key priorities: increase price and non-price competitiveness , reduce vulnerabilities related to its high geographical concentration, stronger governance structure of the tourism sector and a clearer ownership by tourism stakeholders, and expand the tourist product.
Cyprus must also further develop branding and marketing.
“As Cyprus remains an incognita for most people, it would be appropriate to give it a specific face by leveraging its local unique characteristics, such as for instance its hallumi cheese, its honey puffs loukoumades, its villages, or its local wine, just to mention some.”

By Elias Hazou

THE government yesterday said it would not return to peace talks even if Turkey were to cease its illegal explorations in the island’s Exclusive Economic Zone (EEZ).

Speaking to the state broadcaster, government spokesman Nicos Christodoulides said the withdrawal of the Turkish research vessel Barbaros from the EEZ was only one of two preconditions for the resumption of negotiations.

The other precondition, he said, would be a “tangible demonstration” on Turkey’s part that it respects Cyprus’ sovereignty.

“We want to see Turkey’s response to certain developments in the coming days and weeks,” Christodoulides said.
“No one can give us adequate guarantees that the Barbaros will not return after a possible resumption of the talks.

The aim is not to restart talks for the sake of having talks, but rather to conduct negotiations with prospects for a positive outcome. The departure of the Barbaros alone is not enough.”

The NAVTEX, or marine advisory, issued by Turkey expired on Tuesday. Under the advisory, Turkey had reserved a massive swathe of the Cyprus EEZ for seismic research of hydrocarbons – illegally according to Nicosia.

Yesterday the Barbaros – the Turkish vessel conducting the seismic surveys on behalf of Turkish Cypriots – was anchored off Famagusta port, having returned there late on Tuesday.

As of yesterday, Turkey did not renew the same NAVTEX, but could conceivably issue a new one at any time.

The spokesman also dismissed outright a demand put forward by Turkish Cypriot negotiator Ergun Olgun that Cyprus halt its offshore prospecting for hydrocarbons in tandem with a cessation of Turkish exploration activities in the EEZ, paving the way for a resumption of talks.

“There is no question of discussing such a proposal. This idea/suggestion is not acceptable, it is not even accepted by foreign countries involved in the Cyprus question,” said Christodoulides.

“In any case, this is not possible. The Republic has contractual obligations toward these [oil and gas] companies operating in the EEZ, and we have no right to ask them to suspend their operations,” the official added.

“But I want to stress that it is not our intention, even if we could [ask them to suspend their operations], to do so.”

Christodoulides confirmed reports that Cyprus would press on with its natural gas prospecting as scheduled.

A drillship operating on behalf of the ENI-KOGAS consortium would soon be heading to another target in offshore block 9, dubbed ‘Amathusa’.

The drillship would commence drilling there sometime within the first fortnight of January, the spokesman said.

Cyprus has already issued its own marine advisory for the new drilling operation; the advisory will reportedly be in effect until March 19.

President Nicos Anastasiades appears to have hardened his stance. In comments last week, the President indicated he was not ready to return to the negotiating table, and ruled out including hydrocarbons on the talks agenda, as the Turkish side wants.

In doing so, Anastasiades has the backing of almost all opposition parties. DIKO, EDEK, the European Party and the Citizens Alliance have all warned the President against being lured back to negotiations.

Should Turkey refrain from any actions in the EEZ, that would make it that much harder for Anastasiades to argue against the resumption of negotiations.

The government’s strategy on the peace talks – now intertwined with the hydrocarbons issue – is to be reviewed at a meeting of party leaders under Anastasiades scheduled for January 12.

And before that, on January 2, Anastasiades will be hosting an informal gathering of the leaders at his Presidential retreat in Troodos to discuss the same.

Speaking to the Mail, Christodoulides explained that his earlier remarks regarding Turkey’s behaviour in the coming days related to the operations of ENI-KOGAS.

“Provided there is no harassment by Turkey, in any shape or form, of ENI’s operations, and no new NAVTEX is issued, there is a chance for negotiations to resume.”

Commenting on media reports, the spokesman said also the government has no knowledge of an upcoming visit to the island by UN Special Adviser Espen Barth Eide.

Turkey does not recognise the Republic nor Nicosia’s jurisdiction in the EEZ, and says Greek Cypriots are acting ‘unilaterally’ in prospecting for hydrocarbons without including Turkish Cypriots.

By Constantinos Psillides
THE Larnaca Criminal court ruled on Wednesday that the state could seize the assets of defendants found guilty on the Dromolaxia scandal.
The seizure ruling was part of the mitigation hearing that took place until late afternoon after which session was adjourned pending sentencing on January 5.
On December 22 the court found five people and one legal entity guilty. The case concerns the purchase by Cyprus Telecommunications Authority (CyTA) pension fund of a land plot in Dromolaxia at an inflated price.
The court had then delivered a guilty verdict for ex-CyTA boss Stathis Kittis; former Electricity Authority boss Charalambos Tsouris, who was a member of the board of directors of CyTA during the material time; AKEL member Venizelos Zanettos; trade union rep Orestis Vasiliou; land registry official Gregoris Souroullas; and the company Polleson Holdings Ltd as a legal entity.
Larnaca Press said the state was demanding €200,000 from Vasiliou and €250,000 from each of the other defendants, with the exception of Zanettos and Tsouris. The expected amount is estimated at a €1.2m.
Tsouris was only found guilty of conspiring to commit fraud – he was facing the same charges as Kittis, Souroullas and Vasileiou but the prosecution failed to establish his guilt beyond reasonable doubt – while Zanettos was found guilty of blackmail, as he threatened to block the Dromolaxia investment unless Nicos Lillis – the businessman behind the project that turned prosecution witness- repaid old debts of Alki football club worth €650,000. Lillis was chairman of Alki at the time.
Kittis was pronounced guilty on 16 out of 19 counts, including corruption of a public official, accepting bribes and legalising ill-gotten gains. The court said Kittis conspired to inflate the real cost of the Dromolaxia project, for which he took kickbacks totalling €300,000.
He also forged documents in a bid to give the veneer of legitimacy to a commercial agreement between Wadnic Trading and another company by the name of Leagros Investment Ltd, which would justify him receiving a €100,000 cheque from businessman Nicos Lillis, a key player in the whole deal.
Tsouris is liable for going along with the addition of 400 square metres to the Dromolaxia project, known as the Aero Centre. The added surface area unnecessarily raised the project’s cost. He was also liable for drafting a report – which he submitted to the pension fund’s management committee – containing false data to that effect. He was found guilty of fraud, abuse of a public official’s fiduciary duties and obtaining moneys under false pretences.
Vasiliou took €450,000 in bribes as a sweetener to refrain from inciting opposition to the investment from CyTA unions.
Souroullas received €250,000 from Polleson Holdings Ltd and from Vasiliou despite knowing that these were ill-gotten gains. Polleson Holdings, of which Souroullas was a member, was found guilty on the charge of money laundering.
Legislation on seizing assets believed to be the product of criminal activity allows authorities to look into financial records going back six years. CyBC radio also reported that one of the defendants had his assets moved shortly before the trial commenced.
The court acquitted the two other defendants in the case, jewellery shop owner Antonis Ioakim and former CyTA marketing manager Yiannis Souroullas.
As part of the mitigation arguments process, the Criminal court heard a report by Welfare Services on each of the defendants.
The trial began in March 2014. It revolved around the purchase by CyTA’s pension fund of office space in Dromolaxia, near Larnaca airport, at a price several times the going market value. The land was initially sold to a company by the name of Wadnic Trading, which upgraded the coefficients, built on it and sold it on to the CyTA pension fund for some €20 million.

By Gavin Jones
WHEN we were children, many of us were brought up with and inspired by the magical tales of the Greek myths which were dominated by such characters as Hercules with his 12 labours, Jason searching for the Golden Fleece, Perseus battling the multi-headed Gorgon Medusa and a host of other wonderful adventures. In all probability, at an early age these stories gave us the impetus to take up reading as a worthwhile pursuit and helped us to fire our imagination and open our eyes to the many wonders and possibilities that surrounded us.
In the modern Hellenic world, the propensity for myth-making and exaggeration is very much alive and well and ever more so in its eastern outpost, Cyprus. Hardly a day goes by when some Minister or worthy announces that some fantastical project or discovery will soon come to pass and that the island’s current woes will be a distant memory: gas extraction; LNG terminal; pipelines to Egypt, Israel, Greece and all points of the compass; hubs for medical tourism, port facilities and other such ‘hubs'; tourist resorts complete with seaplane facilities; Chinese trade exhibition hall; Qatari hotel, apartment and shopping mall; the overall recovery of the economy and the upward trend of the banking sector. The list is endless.
We then come to the long running national issue, more commonly known as the Cyprus Problem. Of all the fables that have been bandied about over the decades, those concerning this issue must surely take pride of place as it’s been the most prolific in terms of wishful thinking and myth generation as we enter 2015.
In the wake of the general consensus between Makarios and Denktash over 35 years ago that the island should become a bizonal, bi-communal federation, what has been achieved since? Absolutely nothing. Apart, that is, from plenty of mud-slinging and yet more myth-making. Greek Cypriot politicians have implored the refugees to remain strong as a solution would soon be forthcoming. The Church reinforced this view. In addition, the retort ‘All refugees to their homes’ is another cruel fallacy along with the inference that those refugees resorting to the Immovable Property Commission in the north were as good as traitors to the ‘patriotic’ cause.
The reality is that successive Greek Cypriot governments and politicians have made it abundantly clear that they’ve never been serious about a settlement and have merely gone through the motions for both domestic and international consumption. As for occasional references by these same politicians that the Turkish Cypriots are their ‘brothers’, this is fanciful in the extreme and ranks as insincerity in its crudest form.
That other great folklore that’s often quoted is that Greek and Turkish Cypriots lived in perfect harmony with one another and that any discord was encouraged and fomented by perfidious Albion during the EOKA struggle years. Television programmes such as Biz/Emeis foster this idea with octogenarian Cypriots recalling how each community used to visit one another’s houses and attended their respective religious festivals together.
All well and good but the reality was rather different. The village in the Karpas peninsula where my mother and grandmother were born was mixed and while there was no open hostility between the two communities, by and large they led very separate existences. To reinforce this reality, there was no intermarriage (There were exceptions but these were extremely rare occurrences).
The modus operandi of the Legislative Council confirms the above. This body was set up by the British colonial administration with the express aim of allowing a certain degree of involvement in the running of the island by the ‘natives’.
In the 1920s and early 1930s, there were 12 GC elected members, of whom my grandfather was one, and 3 TC members. Unsurprisingly, each community as often as not voted along partisan lines. Furthermore, my grandfather who was a passionate advocate of ENOSIS, Union with Greece, often clashed with his TC colleagues in the Council as they stated that Turkey had a much better claim on Cyprus. (These exchanges are there in black and white via the Cyrus Research Centre publication, ‘Texts and Studies of the History of Cyprus’. The nearest equivalent would be Hansard which publishes the daily goings-on in the British parliament).
In conclusion, the social and political differences between the two principal communities have existed since time immemorial and those who currently govern the island continue to ignore them and pursue the myth that Humpty Dumpty, barring one or two adjustments, can politically be put back together again and return to his former status and position on the wall. In the context of Cyprus, the reality is that there were always two such characters who fell off it. And even if their respective shells are indeed put back together again, ultimately they’re more likely to be sitting at opposite ends of the same wall rather than side by side – if not on two different walls.

By Constantinos Psillides
FOOTBALL season will recommence as scheduled on January 3, a statement from the Cyprus Football Association (CFA) said on Wednesday after police returned all computers and equipment confiscated last month.
Police investigators raided the CFA offices late on December 23, following accusations by international referee Marios Panayi regarding match-fixing in the island’s top league.
“Since our equipment has been safely returned, we can work on Friday January 2 and be ready for the top league’s second round that kicks-off on Saturday,” said the statement.
CFA chairman Kostakis Koutsokoumnis issued a statement last week warning that the championship’s second round kick-off day could be postponed because CFA officials could not go to work. This was only a day after Koutsokoumnis jokingly told media that if he knew about the police’s intention to raid the CFA offices, “I would deliver them the computers myself.”
Referee Panayi caused an uproar within the football community when he gave a press conference claiming that he had recordings, documents and other evidence proving that members of the CFA were fixing matches, in particular those deciding which team would be relegated to the second division.
The whistleblower subsequently gave police a lengthy statement.
According to reports, much of the information Panayi has supplied comprises audio recordings and emails. Because a great deal of this information was illegally obtained, it cannot be used in court, which is partly why police need to corroborate Panayi’s allegations by getting hold of the CFA’s documents.
While the case is currently under investigation and Attorney-general Costas Clerides has pledged to thoroughly investigate, only one arrest warrant was made so far. It concerned an ARIS Limassol football club official Panayiotis Panayiotou, who was accused by former ARIS boss Kyriakos Hadjikyriakou of threatening him. Panayiotou turned himself in late on Christmas Eve and was released the next morning.
Panayi has repeatedly stated that if the legal services can’t build a case he would make all of his evidence available to the public.

BIG CHALLENGES face the country in 2015. The first 20 months of the assistance programme, which focused on fiscal consolidation – cutting spending, increasing taxes and putting public finances on a healthy footing – as well as re-capitalising the banks, would seem the easy part compared to what is expected of the country this year.
Having put public finances and banking on a sound basis the government now has to undertake radical structural reform, such as the introduction of a national health system, privatisation of CyTA and the Ports Authority, the downsizing of local government and the overhaul of the public service. In effect it would be dismantling a malfunctioning state and modernising it in order to improve efficiency and productivity and thus improve service to citizens.
This is the creative, constructive part of the memorandum which admittedly would be much more difficult to implement because people dislike change or to be moved out of their comfort zone. In fact, political parties and unions have already drawn battle-lines vowing to fight the planned privatisations, expressing strong objections to the government proposals for the national health system and slamming the plans for the downsizing of local government. There has not been any reaction from the public servants union PASYDY to the restructuring of the public service, but this could be because plans were still being formulated.
Radical changes that affect long-established privileges and practices will always meet strong resistance, but there is no going back. The government is committed to the restructuring drive and will have to find ways of overcoming the resistance of unions and political parties which have become the forces of reaction.
Expected opposition to reforms may have been the reason President Anastasiades spoke about forming a government of the “broadest possible acceptance”. He recognised that he would need support from more parties than just DISY to implement the programme of reforms. The president is expected discuss his proposal with the party leaders at a meeting scheduled to take place in two weeks, but it would be a major achievement if he persuades any of them to join the government. The parties would opt to stay out of the government and irresponsibly fight reform as this carries no political cost.
This is why the government must formulate strategies for securing approval of the planned reforms. It will not be enough to cite the dangers of not receiving assistance from the troika if reforms are not approved by the legislature. It would need to sell the reforms to public through public campaigns and use of the media as this could put pressure on the parties and weaken their resistance. The president would have to promote the reforms as the way forward for the country and the way of establishing a modern and well-functioning state from which all citizens would benefit. It is a difficult task, but if he succeeds 2015 could become the year of the re-birth of our state.

By Elias Hazou

AFTER a scandal-filled 2014, President Nicos Anastasiades warned yesterday there would be no let up to the crackdown on corruption in public life in 2015, adding that no one – neither politicians nor VIPs – would be spared.

“Coming into 2015, Cyprus is turning a new page. We are entering a new era, the era of rebirth of the Cypriot economy and the modernisation of the state, but also a clampdown on corruption, special interests and impunity,” he said in his New Year televised address.

“Whoever has stolen from or defrauded the public, or abused their position…will be punished. Not as part of a revanchist process, but in the context of serving justice and, wherever possible, compensating the damage caused to the economy and the Cypriot people,” asserted Anastasiades, in an evident allusion to an ongoing probe into the near-collapse of the economy and a host of scandals that have seen the light.

“I wish to be clear: the time of impunity is at an end. The time of zero tolerance has already begun, and this government shall not interfere, shall not cover up, and shall not provide cover to anyone,” Anastasiades promised.

He said that although 2015 would not be an easy year for Cyprus, the government would do what it could to pave the way for better days ahead for adversity-stricken Cypriots.

The President said the worst was now behind Cyprus, following events in 2013 that brought the financial system to the brink of meltdown, wiping out billions from the economy.

In a message crafted to convey unity of purpose, Anastasiades thanked the Cypriot people for their “gigantic contribution” to the rebuilding of a shattered economy, expressing the hope the new year will usher in the “beginning of the end for our country’s misadventures.”

“Our people, once again, faced an ordeal. But through this ordeal we have shown that we have the willpower and the strength to change whatever needs to be changed,” Anastasiades said.

Despite disagreements on how to handle the financial crisis, by and large political parties and social partners played a decisive part in helping the government comply with its obligations toward its international creditors.

Recapping 2014, which he described as a year of sacrifice, the President highlighted the stabilisation and consolidation of the banking system – which successfully negotiated the EU stress tests – the government’s ability to borrow from financial markets after three years, the upgrading of the country’s creditworthiness by rating agencies, and the posting of a primary surplus for 2014.

“At the same time, we are not blind to the huge problem of unemployment and the need for foreign investment inflows, which continues to be paramount,” the President said, asserting that his administration is actively working to attract foreign cash into the country.

The new year will see a redoubling of efforts to modernize and reform the state, Anastasiades noted.

On the Cyprus issue, the President said 2014 began well with the joint declaration of February 11 by the leaders of the two communities, which laid the groundwork for putting peace talks back on track.

However since then the situation has deteriorated due to the Turkish side’s backtracking.

Stating that his government is against the status quo, Anastasiades noted however that he would not enter into a dialogue “under blackmail” – a reference to the current standoff over hydrocarbons prospecting.

The President reiterated that the country’s natural resources and wealth belonged to all legal citizens of the Republic, but added that it was “self-evident” that exploiting and managing this wealth should be the purview of the legitimate and internationally recognized government on the island.

“Natural resources ought not to be used as a pretext to create new fait accomplis against the sovereignty of the Republic, but rather as an incentive to achieve, as soon as possible, a peaceful solution ensuring unity of the state, the people and the economy.”

Addressing the Turkish Cypriot community and Turkey, the President said Greek Cypriots are ready to restart peace talks provided there is a cessation of any actions questioning the Republic’s sovereign rights “or an indirect threat of imposing the will of the strong.”

In closing, Anastasiades repeated a proposal for forming a government of “broad acceptance.”

“It has always been my conviction that, in order to deal with national dangers and major national tragedies, such as the current economic crisis, the shoulders of any single person are not enough,” he noted.

Manchester United’s hopes of launching a New Year title challenge suffered a setback at the first opportunity on Thursday when they could only draw 1-1 at mid-table Stoke City in an all-action Premier League clash.

The result stretched their unbeaten run to 10 games but three of the last four have been draws and their already slim-looking hopes of catching the top two receded further after a match where they were somewhat lucky to escape with a point.

United remain third on 37 points, six behind Manchester City and nine behind leaders Chelsea, both of whom are in action later on Thursday in a full programme of Premier League action.

Though United are progressing as an attacking force under Louis van Gaal, they still look vulnerable at the back and that weakness cost them a goal after two minutes.

Peter Crouch got his head to a corner and Ryan Shawcross was the quickest to react to steer the ball as Stoke continued with the form that had brought them two wins out of two in the Christmas fixtures.

Mame Diouf should have made it 2-0 when he outmuscled Jonny Evans but then with just David de Gea to beat, shot wide.

United levelled midway through the first half from their own corner, which Michael Carrick flicked on and Radamel Falcao turned in but they were never able to take control of the game.

In a game made open and tough for defenders by a swirling wind, Crouch hit a post for Stoke and had a strong penalty claim for handball turned down, while Robin van Persie sent an aerial volley just wide in the second half.

“We’re disappointed, in terms of pressure, momentum, chances created, I think we were the team who looked most likely to score,” Stoke boss Mark Hughes told Sky Sports.

“Tactically we were spot on and they found it difficult to get their key players on the ball.”

United defender Evans accepted that his side could have few complaints. “Maybe some of the other draws we’ve had recently we deserved to win but today I felt Stoke put us under a lot of pressure in the second half and we probably didn’t play up to our usual standard.”

A stampede killed at least 36 people during New Year’s Eve celebrations in Shanghai, authorities said, but police denied reports it was caused by people rushing to pick up fake money thrown from a building overlooking the city’s famous waterfront.

The government in China’s gleaming business capital said large crowds started to stampede on Chen Yi Square, in the riverside area known as the Bund, just before midnight.

It was the worst disaster in the cosmopolitan city since 58 died in an apartment building fire in 2010.

The cause of the crush has still to be confirmed, though state media and some witnesses have said it was at least partly triggered when people rushed to pick up coupons that looked like bank notes.

A man named Wu, who brought one of the 47 injured to hospital for treatment, said the fake money had been thrown down from a bar above the street as part of the celebrations.

But Shanghai police said on their official microblog that while closed-circuit television footage did show some bills had been thrown from a bar in a building overlooking the Bund, which a small number of people picked up, this did not cause the crush.

“This incident happened after the stampede,” police said in a brief statement, without saying what the real cause was.

Another witness, who gave his family name as Wei, said there had been a problem away from the area where the fake bills were thrown, with people trying to get on to a raised platform overlooking the river.

Xinhua news agency said that people had been trampled on after falling down on the steps up to the platform.

“We were caught in the middle and saw some girls falling while screaming. Then people started to fall down, row by row,” a witness surnamed Yin told Xinhua.

Some Chinese media outlets carried criticism of the authorities for lack of adequate policing and planning.

Police officer Cai Lixin said they did not have a large presence on the Bund as there were no formal New Year events planned, Caixin magazine said.

Foreign media were forbidden from attending a police press conference, underscoring government sensitivity about any critical coverage of disasters.

State media said many of the dead and injured were students, and 28 of the dead were women.

Authorities had shown some concern about crowd control in the days leading up to New Year’s Eve. They recently cancelled an annual 3D laser show on the Bund, which last year attracted as many as 300,000 people.

On New Year’s Eve, Beijing also cancelled a countdown event in the central business district, Chinese media said, due to police fears about overcrowding.

President Xi Jinping has asked the Shanghai government to get to the bottom of the incident as soon as possible, and ordered governments across the country to ensure a similar disaster could not happen again, state television said.

The Shanghai government said on its official microblog that an inquiry had begun, and that all other New Year events had been cancelled.

Photographs on Weibo, the Chinese version of Twitter, showed densely packed crowds of revellers along the Bund where buildings from Shanghai’s pre-communist heyday face the Huangpu River and house upscale restaurants, bars, shops and hotels.

In 2004, 37 people died in a stampede in northern Beijing, on a bridge at a scenic spot, during the Lunar New Year holiday.

For the second time in a week Manchester City threw away a 2-0 lead against a Premier League struggler but this time they hit back as Frank Lampard came off the bench to secure a 3-2 win over Sunderland on Thursday.

After dropping points at home to Burnley on Sunday, City looked to have blown it again in a second-half goalfest but Lampard celebrated extending his loan until the end of the season with the winner three minutes after coming on as a 70th-minute substitute.

The result takes City to 46 points, behind leaders Chelsea, who visit Tottenham Hotspur later, on goal difference. Manchester United are third on 37 after a 1-1 draw at Stoke City while Southampton stay fourth on 36 after they beat fifth-placed Arsenal 2-0.

The league’s bottom two, Leicester City and Burnley, came from behind to draw 2-2 at Liverpool and 3-3 at Newcastle United respectively while there were also draws for two clubs with new managers as Crystal Palace and West Bromwich Albion finished level with Aston Villa and West Ham United.

Chelsea and Manchester City ended the first day of 2015 locked together at the top of the Premier League as City’s 3-2 victory over Sunderland on Thursday was followed by a shock 5-3 defeat for Chelsea at Tottenham Hotspur.

Chelsea, previously beaten only once this season, looked set for another victory when Diego Costa scored after 18 minutes but rampant Spurs surged back with goals by Harry Kane, Danny Rose and Andros Townsend (penalty) to lead 3-1 at halftime.

Kane then fired in his second goal seven minutes after the restart and though Eden Hazard pulled one back, Nacer Chadli completed a memorable day for a hugely impressive Spurs with the fifth goal 12 minutes from time before John Terry got a late third for Chelsea.

City and Chelsea have 46 points from 20 games, an identical goal difference of plus-25 and have both scored 44 goals.

Manchester United are third on 37 points after a 1-1 draw at Stoke City, Southampton are fourth on 36 after beating Arsenal 2-0, with Spurs up to fifth on 34.

The meeting that was set to take place between President Anastasiades and the leaders of the parliamentary parties at the presidential retreat in Troodos region has been postponed due to weather conditions.

The meeting will now take place on Monday at 11.30 at the Presidential Palace.

Government Spokesman Nicos Christodoulides told CNA that the only issue on the agenda will be the Cyprus problem and that President Anastasiades and party leaders will review and discuss the situation.

CNA

By Staff Reporter

WHILE the reforms are real in the south, in the north they are hanging in mid air, the daily Halkin Sesi said in an article that compares the measures taken on the two sides of the island to tackle the economic problems.

According to the article, despite the reactions and criticism from the opposition and trade unions, the government of the Republic of Cyprus is implementing the austere measures demanded by the troika of international lenders in order to avoid reliving the same problems and help the economy grow on a healthy basis.

While the Greek Cypriot side is taking structural measures, those in the Turkish Cypriot side are temporary, the article said.

An overcrowded civil service seems to be a problem in the south as well, since, according to the article, for every two retirements in the north one person is hired, compared to the four to one ratio implemented in the south.

In 2013, the report said, 350 people retired from the civil service but 360 were hired. It also suggested that more and more students prefer private schools than state schools but the number of teachers in public schools is also increasing.

Even though teachers that come from Turkey are being paid by Ankara, the article said, the cost of their salaries is included in the budget of the breakaway regime in the north.

Meanwhile, the Turkish Cypriot real estate agents expect that between 2016 and 2017 the property market in the north will live its ‘golden era’ the daily Kibrisli added.

The head of the real estate agents was quoted as saying that the prices of property in the government-controlled area of Cyprus will increase in that period and many Europeans who own property there will sell and invest in property in the occupied areas with a part of the money they will get.