By Stelios Orphanides

Public revenue in the first two months of the year fell 8.8 per cent to €978.8m compared to a year before, mainly on a direct tax revenue slump which outstripped a decrease in spending, the finance ministry said.

By Jean Christou
UN SPECIAL Adviser Espen Barth Eide will be in Cyprus from April 6-8, the Secretary-General’s Good Offices mission said on Monday only hours after the Turkish Cypriot side announced the withdrawal of its seismic vessel Barbaros “within the day”.
Eide’s visit also comes on the day Turkey’s second navigational telex (NAVETX) expires. This, combined with the departure of the ENI-KOGAS drilling vessel Sapiem1000 from the island’s exclusive economic zone (EEZ), has paved the way for the stalled negotiations to resume.
According to an announcement from the UN, Eide was visiting to “to follow up on the encouraging indications received during his last trip to the island regarding a possible resumption of the negotiations”.
Eide will meet separately with President Nicos Anastasiades and Turkish Cypriot leader Dervis Eroglu to continue discussions on restarting the talks. He will also meet the chief negotiators for both sides “in support of their substantive preparations”.
“The Special Adviser continues to be optimistic about the prospects for a return to structured, results-oriented negotiations, and looks forward to this visit as an important step towards renewing the momentum in the talks,” the UN statement said.
No indication was given for when the talks might resume but Eide has previously said he hoped to announce a date either for the end of April or the beginning of May when conditions were optimal. Elections are being held in the north on April 19.
On Monday, the Barbaros was due to leave Famagusta port, a day after the Sapiem left the island’s EEZ.
According to a marine traffic site, the Barbaros was still at Famagusta late afternoon, but Turkish Cypriot ‘foreign minister’ Ozdil Nami said it would be gone within the day.
He said the Turkish Cypriot side was reciprocating for the departure of the Sapiem by sending the Barbaros back to Turkey.
Speaking on Turkish Cypriot radio, BRT, Nami said Turkey did not want to give the Greek Cypriot side “any excuse” not to return to the negotiating table.
The Barbaros has been anchored off Famagusta since December 30 when the first navigational telex (NAVETX), issued in October, expired, and the vessel had carried out seismic explorations in the island’s exclusive economic zone during a two-month period. In response, the Greek Cypriot side withdrew from the talks.
A second NAVETX was issued from January 6 until April 6 but the Barbaros has not left Famagusta port during the past three months.
The expiry of the second NAVTEX, plus the fact that ENI-KOGAS has stopped drilling and sent the Sapiem to Italy for maintenance, which is expected to take four or five months, has opened a window of opportunity for the resumption of the stalled negotiations.
The Greek Cypriot side had said as long as any NAVTEX was in force, and as long as the Barbaros remained off Cyprus, there would be no talks, while the Turkish side refused to go back to the table as long as drilling continued in the EEZ.
Mediators deny any backdoor deal even though the demands of both sides have now been met.
Nami said departure of the Barbaros would put an end to any excuses put forward by the Greek Cypriot side to stay away from the talks.
He also told the Associated Press that Turkey’s NAVTEX would not be renewed “if the Greek Cypriot side does not [resume drilling] either.”

Police on Monday arrested the rector of the Limassol-based technical university TEPAK on suspicion of interfering with promotions procedures.
Elpida Keravnou is being questioned in connection with claims that she had interfered with the committee assessing lecturers between September and October 2014.
Authorities are looking into potential offences relating to abuse of authority, forgery and conspiracy to commit felony.

Guards shot one man dead and seriously wounded a second when they tried to ram a vehicle into the entrance gate at the Fort Meade, Maryland, headquarters of the National Security Agency on Monday, news reports said.

Federal law enforcement officials told Reuters that two people in a car tried to ram the spy agency’s gate and initial indications are that at least one was seriously injured. The motive was unknown but the incident was not related to terrorism, the officials said. The FBI is investigating.

One federal law enforcement official told Reuters the incident appeared to be a local criminal matter.

White House Principal Deputy Press Secretary Eric Schultz said: “The President has been briefed on this morning’s incident at the National Security Agency and will be updated as appropriate.”

NBC, quoting sources, said the men, disguised as women, were in a stolen car. A guard shot at least one of the men and a gun and drugs were found in the vehicle, a Ford Escape.

The NSA is investigating the incident, which occurred about 20 miles (32 km) northeast of Washington, NBC said.

Television helicopter video footage showed two damaged vehicles outside the gates and at least one person in uniform being wheeled to an ambulance.

One of the vehicles was marked ‘police’ on the side and had its hood up. The other, a dark vehicle, had front-end damage.

An NSA spokeswoman had no immediate comment. Spokesmen for Fort Meade and Anne Arundel County Police referred questions to the spy agency.

British Foreign Secretary Philip Hammond will not make it to Cyprus on Tuesday due to the ongoing nuclear talks in Switzerland between Iran and the major powers.
No new visit has been planned, a spokesman at the British High Commission said on Monday.
“The Foreign Secretary had planned to travel to Nicosia but ongoing talks on Iran in Switzerland means his plans have had to change,” the spokesman told the Cyprus Mail.
No new visit has been scheduled, he added, as Hammond would be returning to the UK, which has entered an election period. Britons go to the polls in May
The planned visit was part of a European tour to push Britain’s EU reform agenda. Hammond was due to meet both Cypriot leaders to discuss the Cyprus problem, bilateral relations, developments in the Eastern Mediterranean region and the fight against terrorism.
Political parties were all riled up last week over reports that Hammond would be in Cyprus and meeting Eroglu on April 1, the 60th anniversary of the EOKA uprising against colonial rule.

CO-OP BANKS on Monday announced a €41.2 million net profit for 2014 despite the rise in provisions for bad debts. Total provisions reached €2.97 billion.
Loans which have not been serviced for over 90 days reached €6.7 billion or 51.1 per cent of the of the loan portfolio.
Net income rose to €392.3 million compared with €377.8 million in 2013, the Cooperative Central Bank (CCB) said.
Net interest rate revenue was €378.4 million compared with €411.7 million in the previous year.
Operational profit rose 10.2 per cent to €192 million against €174.3 million the year before.
Deposits dropped to €12.4 billion compared with €13.5 billion in 2013, the CCB said.
Some €500 million flowed into co-ops following their success in the European bank stress tests in October.
As part of the island’s €10 billion international bailout, co-ops received €1.5 billion in taxpayers’ money to recapitalise.
The sector has been reduced in size through mergers, which saw the island’s 93 co-operatives merged into 18. The mergers were completed in 2014.
CCB chairman Nicholas Hadjiyiannis said 2014 was an important year for co-ops, which ended “with significant profitability supported by a robust balance sheet with adequate provisions, strong capital basis, and ample liquidity”.
The CCB recently announced cuts in its lending rates across the board.

MPs on Monday wrapped up discussion of the fifth bill comprising the insolvency framework – a set of laws governing personal and corporate bankruptcy – hoping to put the whole package to a vote this Thursday.
The fifth bill deals with the protection of primary homes, business premises and guarantors’ obligations to the principal debtor.
The House aims to table the insolvency framework to the plenary for a vote by April 2, the last plenum before the Easter break.
April 2 is also the date on which the foreclosures law – which the opposition has repeatedly blocked – comes into force.
However, the House finance and interior committees will hold another session on Tuesday – and perhaps on Thursday – to review modifications made by the government to the four other insolvency bills.
Asked what would happen should legislators not make the April 2 target they have set themselves, finance committee chairman Nicholas Papadopoulos (DIKO) said:
“Allow me to answer that on Thursday. We shall see. We are making every effort to complete discussion within the time limit.”
Enactment of the insolvency package should allay opposition parties’ concerns over the foreclosures legislation, finally allowing the latter’s enforcement.
Implementation of effective repossessions legislation is a key obligation stemming from Cyprus’ bailout deal with international creditors.

By Constantinos Psillides

Rector of the Technology University of Cyprus (TEPAK) Elpida Keravnou was remanded in custody for three days on Tuesday in connection with claims she had interfered with promotion procedures.

According to the Cyprus News Agency, police had requested the Limassol District Court issue an eight-day remand.

Authorities are looking into potential offences relating to abuse of authority, forgery and conspiracy to commit a felony.

It is understood that a TEPAK committee had drafted a list of those deemed eligible for promotion but a second list later appeared including those who had been excluded.

The TEPAK rector was arrested on Monday after claims she had interfered with the committee assessing lecturers between September and October 2014.

According to the court report, the rector falsified the minutes of a committee meeting tasked with deciding lecturers’ promotions. Following the departure of two members of the committee, the rector appears to have dictated new minutes to the committee secretary, effectively changing the promotions order. The committee chairman signed off on the new minutes, after being assured by the rector that the rest of the committee would sign off on them too.

The rector claims she altered the minutes to correct mistakes in the procedure, arguing that an erroneous procedure would pose problems for the university in the future.

The rest of the committee members refused to sign off on the new document, requesting the document be disregarded.

The new minutes were destroyed, according to the court report, but a copy was emailed to the university senate which on October 8, 2014 promoted lecturers based on the document altered by the rector.

The process was put on hold by Auditor General Odysseas Michaelides, who was looking into TEPAK’s various dealings.

In court on Tuesday, the rector’s lawyer argued that Keravnou was merely doing her duty after realising that the original document had “glaring omissions and mistakes”.

The police investigator responded that despite that fact, the rector should not have interfered in the way she did.

In handing over evidences to the police, the rector appears to have handed over a USB stick claiming “on it there are evidence that would help solve the case”.

The rector’s arrest is the latest in a series of scandals to have hit TEPAK.

Authorities have charged the head of the university’s property management service Zenon Achillides, 44, and 51-year-old contractor Giorgos Hadjigeorgiou in connection with mismanagement of funds.

The pair face 20 charges including conspiring to commit a felony, forgery, circulating a forged document and obtaining money through false pretences.

Achillides was also charged with receiving bribes and abuse of authority. Both have denied all charges. Their trial is scheduled for June 3.

The charges concern offences committed between 2005 and 2009 relating to three buildings rented by TEPAK for almost €16m.

Achillides was also arrested last week along with Andreas Malloupas, 66, the former head of administration and finance, for offences relating to other TEPAK property.

Among others, the pair could face charges relating to abuse of power, bribery, forgery and money laundering.

Michaelides said recently that the case of misappropriation of funds at TEPAK might be even bigger than the Paphos Sewerage Board scandal, which has so far seen the town’s mayor and the board’s director jailed for six years.

The TEPAK affair concerns millions of euro in contracts for around 60 buildings acquired to accommodate students.

By Mohammad Mukhashaf and Sami Aboudi

Saudi troops clashed with Yemeni Houthi fighters on Tuesday in the heaviest exchange of cross-border fire since the start of a Saudi-led air offensive last week, while Yemen’s foreign minister called for a rapid Arab intervention on the ground.

Saudi Arabia is leading a coalition of Arab states in a six-day-old air campaign against the Shi’ite Houthis, who emerged as the most powerful force in the Arabian Peninsula’s poorest country when they seized Yemen’s capital last year.

The Saudis say their aim is to restore President Abd-Rabbu Mansour Hadi who left the country last week. The Houthis are allied with Saudi Arabia’s regional foe Iran, and backed by army units loyal to long-term ruler Ali Abdullah Saleh, who was toppled three years ago after “Arab Spring” demonstrations.

The conflict has brought civil war to a country already on the verge of chaos and forced Washington to evacuate its personnel from one of the main battlefields in the secret U.S. drone war against al Qaeda.

Residents and tribal sources in north Yemen reported artillery and rocket exchanges along several stretches of the Saudi border. Explosions and heavy gunfire were heard and Saudi helicopters flew overhead, they said.

In the southern port of Aden, Houthi fighters and allied army units pressed an offensive against forces loyal to Hadi, trying to capture the last remaining major stronghold of the absent president’s forces.

At least 36 people were killed when Houthi forces shelled Hadi loyalists in Aden. Jets from the Saudi-led coalition bombed Houthi positions near the airport.

Hadi’s rump government, now based in Saudi Arabia, is calling for Riyadh to escalate the air war into an invasion.

Asked by an interviewer on pan-Arab television channel al-Arabiya Hadath whether he sought an Arab ground intervention, Yemeni foreign minister Riyadh Yasseen responded: “Yes, we are asking for that, and as soon as possible, in order to save our infrastructure and save Yemenis under siege in many cities.”

Saudi authorities say they have gathered troops along the border in preparation for any possible ground offensive, but have given no timetable to send them in. Pakistan has also said it is sending troops to support Saudi Arabia.

In the southern city of Dhalea, residents reported heavy fighting, with southern secessionist fighters trading artillery fire with Houthis backed up by army units loyal to Saleh.

Repeated air strikes hit Houthi and allied positions, including an ammunition store at a military base causing huge explosions. An eyewitness said nine southern fighters were killed, along with around 30 Houthi and allied fighters.

In the central town of Yarim, an air strike hit a fuel tanker, killing at least 10 people, residents said.

IRAN PROPOSAL

The Houthi fighters are drawn from a Zaidi Shi’ite minority that ruled a thousand-year kingdom in Yemen until 1962. They are backed by military units still loyal to Saleh, himself a member of the Zaidi sect who fought to crush the Houthis while in power but has now allied with them.

Tension in the border area has mounted since an air strike by the Saudi-led coalition killed at least 40 people at the Mazraq camp for displaced people near Haradh on Monday.

Saudi Arabia has a history of wielding influence in its poorer neighbour and fought a brief and indecisive ground conflict against the Houthis in the border area in 2009 while supporting then-leader Saleh.

The civil war comes after years of unrest and disintegrating central authority in a country also dealing with a southern secessionist movement, tribal discontent and al Qaeda’s most potent regional branch.

Saleh’s decision to ally with the Houthis tips the regional balance of power away from Saudi Arabia and towards Iran, a feud also being played out on battlefields in Syria and Iraq. The crisis is the first big foreign policy test for Saudi Arabia’s new king, Salman, and kin he has elevated to top posts.

Iran’s Deputy Foreign Minister Hossein Amir Abdollahian called the Saudi strikes a “strategic mistake”. He said Tehran had a proposal to end the conflict and was trying to reach out to Riyadh. He gave no details.

“Iran and Saudi Arabia can cooperate to solve the Yemeni crisis,” he said in Kuwait. “We recommend all parties in Yemen return to calm and dialogue.”

Saudi Arabia’s Foreign Minister, Prince Saud al-Faisal, said the operation would continue until it achieves its aims of restoring security and unity to Yemen.

“We are not the ones calling for war. But if you bang the drums of war, we are ready for it,” he told the kingdom’s Shura Council advisory body.

While the strikes have not halted Houthi gains, the Saudi-led coalition says it has succeeded in closing off Yemeni airspace to Houthi supporters and imposing a naval blockade.

The International Committee of the Red Cross said one of its planes was prevented from delivering medical supplies in Sanaa, and called for “the urgent removal of obstacles to the delivery to Yemen of vital medical supplies needed to treat casualties”.

It also called on all combatants to allow humanitarian workers to operate safely. A Yemeni Red Crescent volunteer was shot dead on Monday in Dhalea while evacuating wounded people.

By Curtis Skinner

An armed prisoner who fled a suburban Washington hospital with a guard’s gun on Tuesday was recaptured in the US capital after a nine-hour manhunt, police said.

The prisoner, accused bank robber Wossen Assaye, 42, broke free from a private security guard at the Inova Fairfax Medical Campus in Falls Church, Virginia, at about 3 a.m. and fled with the guard’s weapon, the Fairfax County Police Department said on its Twitter account.

Assaye stole two cars during a manhunt by local, state and federal authorities. He was recaptured in Washington and is in the custody of the city police, Fairfax County Police said.

Assaye had been held by the nearby city of Alexandria and was taken to the hospital about 24 km west of Washington on Friday after he tried to harm himself, according to police.

While at the hospital, Assaye overpowered the guard early on Tuesday and took his gun, police said. One shot was fired, but no one was injured before Assaye fled wearing only a hospital gown, police said.

Assaye is charged with the March 20 robbery of the Apple Federal Credit Union in Alexandria. An affidavit in U.S. District Court said he fled the bank on a bicycle with about $1,800.

A man matching Assaye’s description is suspected in 11 other bank robberies in northern Virginia. Assaye, who is on probation, was in prison from 2000 to 2013 for burglary and robbery convictions, the affidavit said.

Fairfax County Police spokesman Roger Henriquez told CBS News that the first vehicle stolen by Assaye had been driven by a woman who discovered him in the back seat.

Henriquez said that either during the woman’s escape or when Assaye was driving, the car sustained heavy front-end damage.

By Elias Hazou

The consortium with a concession on offshore Block 12 will, sometime in the next few weeks, submit their development plan for the Aphrodite gas prospect to the government, energy minister Giorgos Lakkotrypis said on Tuesday.

“The development plan will essentially describe in detail the ways in which the subsea infrastructures will be done for the exploitation of the Aphrodite reservoir, as well as the potential markets which this exploitation will target,” Lakkotrypis told reporters after briefing a closed-doors session of the House commerce committee.

The Block 12 partners – Noble Energy and Delek – are targeting regional markets.

“We are talking about Cyprus, Egypt or even Jordan,” the minister said.

Responding to questions, Lakkotrypis clarified that though the government is still waiting for the development plan, preliminary plans are looking at a floating production, storage and offloading (FPSO) vessel combined with subsea pipelines to the possible destinations earmarked.

An FPSO is essentially a platform producing and treating the gas on-site. The gas would then be piped to existing LNG facilities in Egypt.

Jordan meanwhile is currently building an LNG terminal at the port of Aqaba. The terminal is scheduled for completion by July, according to reports.

Asked about the cost of developing Aphrodite, Lakkotrypis said they had some estimates available, but declined to disclose them until the government had in its possession the development plan.

The Aphrodite play holds an estimated 4.5 trillion cubic feet of natural gas. It is understood that a small portion of the gas is to be channelled to the Cypriot market for domestic electricity generation.

“The timeline we are looking at right now for the advent of natural gas, either to Cyprus or to the destination with which we will strike commercial agreements, envisages 2018, 2019 or 2020,” Lakkotrypis said.

The minister was asked also whether it was certain that no further drilling would be taking place in Cyprus’ offshore blocks until 2017.

“No, nothing is certain,” he commented.

On the ENI-KOGAS consortium – which recently hit a dud in Block 9 – Lakkotrypis said the companies have requested an extension to their exploration programme, allowing them time to re-evaluate their geological model.

The government, assisted by its foreign consultants, is considering the request and would give its answer within the next few days, Lakkotrypis noted.

ENI-KOGAS’ exploration license expires in February 2016.

Asked whether the revision of Total’s contract set a precedent for ENI as well, Lakkotrypis said: “We don’t think so, these are two completely cases.”

In January, it emerged that French oil giant Total had found no potential drilling targets in their two offshore concessions (blocks 10 and 11) and were likely to pull the plug on their operations. The government subsequently amended Total’s contract, waiving a penalty for not drilling exploratory wells.

For his part, House commerce committee chairman Zacharias Zachariou (DISY) told reporters that, based on the minister’s briefing, “nothing is being suspended, we are proceeding according to schedule, and unsuccessful drills are part of the programme.

“We are not the only country with unsuccessful drills,” the MP said, adding: “In general, the probability of discovering natural gas is about 25 per cent, and the probability of finding commercially exploitable quantities is 18 per cent.”

The Turkish Cypriot Chamber of Industry (TCCI) has moved forward with registering traditional alcoholic drink zivania as a Protected Designation of Origin (PDO) product, although the certification is only applicable in the breakaway state.

According to the Cyprus News Agency, TCCI chairman Ali Cirali stated that while it is true the certification is not valid in the EU or Turkey, “it is the first step for filing for an application with the

Turkish Patent Institute and launching an initiative within the EU.”

Cirali pointed out that zivania is the third product protected by the TCCI – which now requires producers to adhere to certain standards – after whisky and halloumi cheese. The chairman added that crushed olives, shieftalies and carob syrup are next on the list.

Halloumi/hellim is a point of major contention since Cyprus has filed an application to the European Commission to grant halloumi a certificate of PDO last July.

The TCCI and Turkish Cypriot halloumi producers strongly object the application, arguing that they have not been consulted on the process. To that effect, the TCCI has filed five cases at the Supreme Court fearing that their producers would be disadvantaged.

The TCCI is calling for a separate production control mechanism of halloumi to be established, claiming that in any other scenario they would be at a disadvantage.

By Stelios Orphanides

Bank of Cyprus’ audited results showed the lender made a €261m after tax loss in 2014 and revised upward its unaudited loss by €5m posted on February 25, the lender said.

The loss last year resulted from a €303m loss caused by discontinued operations related mainly to operations in Russia, Bank of Cyprus said in an emailed statement today. In 2013, in which the lender was forced to sell its operations in Greece and use its customers’ deposits to recapitalise itself as part of the bailout, it posted a €2.1bn loss, which was mainly caused by losses on disposals of its Greek units.

By George Psyllides

MPs were irked on Tuesday by the refusal of state officials to attend a meeting to discuss FBME Bank, placed under administration by the Central Bank (CBC) following allegations of money laundering in the USA.

The attorney-general, the finance minister and the CBC governor did not attend the meeting. The attorney-general and the minister had written to the committee saying they would not attend so as not to affect ongoing legal procedures.

Deputy chairman of the House Ethics Committee Demetris Syllouris censured the officials, adding that he would raise the issue with the president of the republic and the House president.

Syllouris claimed the officials were trying to hide behind procedures either because they feared to take responsibility or there was an effort to cover up mistakes and omissions.

The CBC took over the Cyprus branch of the Tanzania-based bank last year, placed its operations under resolution and embarked on finding a buyer after the US Department of the Treasury named FBME as “a financial institution of primary money laundering concern”.

To date, FBME shareholders deny the allegations and have resorted to the arbitration court to have the liquidation and resolution orders lifted.

In February, Attorney-general Costas Clerides appealed to the members of the committee to refrain from discussing the matter at this time.

In a letter to the committee, Clerides said it would be against the public interest and would cause problems to the ongoing legal procedures.

“We categorically reject this argument, which we consider unfounded,” AKEL MP Aristos Damianou said, adding that if the outcome of any cases was affected it would be because those responsible had handled the matter the wrong way.

Syllouris said the committee will not discuss the matter in an open session and will invite the same officials again on April 21.

By Angelos Anastasiou

Former Laiki Bank strongman Andreas Vgenopoulos on Tuesday denied charges that ship-owner Michalis Zolotas, owner of the controversial Focus Maritime Corporation, is his “close friend and associate”, as allegations of the company being used as a slush fund to bribe political parties and state officials resurface.

Considered by many a key figure in the build-up to Cyprus’ banking meltdown in March 2013 through bad loans and investment bets, Vgenopoulos has trumpeted his innocence for years, accusing the

“Cypriot political and economic establishment” of trying to use him as a scapegoat.

At the core of charges against Vgenopoulos lie allegations of indirectly bribing Cypriot politicians and key officials, including former Central Bank governor Christodoulos Christodoulou, who was recently sentenced to five months in jail for failing to disclose €1 million he received from Focus Maritime Corporation to the taxman, a payment he maintained related to consultancy services for 10 years, as well as alleged payments of €2 million – also by Focus – to the island’s two largest political parties in the run-up to the 2008 presidential election.

Focus is owned by Greek shipping magnate Zolotas, described by many a “Vgenopoulos’ close friend and associate” – the implication being that Zolotas had greased the wheels of the political and financial world on Vgenopoulos’ behalf – a link flatly denied on more than one occasion by Vgenopoulos.

“I repeat once more that Mr Zolotas was neither my friend nor my associate,” Vgenopoulos’ statement read.

Vgenopoulos referred to an interview he gave to CyBC presenter Elita Michaelides last June, in which he revealed that prior to any purported link between him and Zolotas, the Greek ship-owner already had business interests in Cyprus and had teamed up with important Cypriot businessmen, who later went on to take political appointments.

“This includes two of Zolotas’ business partners as early as 2005,” Vgenopoulos said.

“One is Mr Stavros Stavrou, who was appointed chairman of Cyprus Airways in 2012 by Mr Christofias, and the other is Mr Takis Clerides, Finance minister during Glafcos Clerides’ term in office, and treasurer for the Cyprus Ship-owners Association.”

“Therefore, any investigation that should be carried out, if not already underway, should relate to the origin and beneficiaries of funds invested in Mr Zolotas’ ships, as well as any links these funds may have had to the money that found its way to the two parties’ coffers.”
Vgenopoulos insisted he was in no way linked to any money that may have been paid by Focus to politicians or state officials.

“As far as I am concerned, the merciless attacks I am being subjected to by Cypriot political parties prove that I have never sought, or achieved, any dealings with the establishment,” he declared.

Meanwhile, in a letter of response to a statement issued by Vgenopoulos on Monday announcing journalist Costas Vaxevanis’ conviction to 26 months in jail – suspended for three years – for slanderous claims, the journalist implied that justice had not been served at the trial and implied that vested interests both in Greece and Cyprus are trying to silence him.

“In Cyprus, a commission was set up to investigate the economic collapse, reports and classified documents were submitted and witnesses testified, but Greek justice showed no interest in any of it,” Vaxevanis charged.

“I’m not sure the Cypriot justice system cared any more, but I am talking about the Greek authorities,” he added.

During the libel trial, the journalist claimed, Vgenopoulos argued that through his press reports, Vaxevanis defended Cypriot interests against those of Greece, and that his aim was for Cyprus to get out of paying Vgenopoulos €4 billion.

“That is what Andreas Vgenopoulos said, and that is what some in Cyprus – who speak lightly of my conviction – are snickering about,” Vaxevanis’ letter read.

Suggesting that justice was not served during the libel trial, the Greek journalist said he would be seeking his vindication through the appeals process, and “if necessary, by European courts”.

“Cypriots can rest assured that all documents will be submitted to state prosecutors, whether the Cypriot authorities release them or not,” he warned.

By Elias Hazou

The price of electricity is to be reduced due to falling oil prices, the Electricity Authority of Cyprus (EAC) announced on Tuesday.

April’s household bills will see a 1.2 per cent decrease in the unit price of electricity, relative to the previous month, and a total 9 per cent decrease compared with February’s prices.

A year-on-year comparison reveals a 20 per cent decrease in the price of electricity.

Meanwhile, energy minister Giorgos Lakkotrypis has promised to meet anew with EAC workers’ unions in a bid to avert a potentially crippling showdown over government plans to privatise the power utility.

“We are committed to continuing the dialogue… and over the next days I shall have a private meeting with the unions in an attempt to bridge any differences,” the minister told reporters on Tuesday after a session of the House commerce committee.

The dialogue with the unions would be based on the suggestions made by the chairman of the commerce committee, Lakkotrypis said.

On Tuesday, committee chairman Zacharias Zachariou (DISY) proposed pushing back further the tender deadline for a study on the legal separation of the EAC.

The deadline was initially set to expire on March 31, but through the commerce committee’s mediation last week, it was delayed to April 15 – temporarily averting planned strikes by EAC workers that would have led to power outages.

Last Thursday, the Privatisations Commissioner announced that a tender deadline for a study on the legal separation of the EAC would be pushed back by two weeks. In turn, the trade unions said they would likewise suspend any industrial action until April 15 as a goodwill gesture.

Zachariou’s proposal also envisages modifying the terms of the tender, following consultations with all the stakeholders.

“Cyprus and its economy cannot afford strikes at the moment, and it is not right for consumers to be left without electricity during Easter,” the MP later said.

“Candles should be lit only to celebrate the Resurrection, and not for illuminating our homes because there is no power,” he added.

The MP said he felt the two sides – the energy ministry and the EAC – are closer to each other than they realise.

“They just don’t know it yet. In order that they do realise it, we shall be convening again before the end of the week, giving them a chance to reach an agreement that will be to the benefit of the economy, the consumers, the EAC and the workers whose rights are enshrined in law.”

For his part, head of the EPOPAI-SEK trade union Andreas Panorkos welcomed the dialogue but warned the strike measures have been suspended, not cancelled.

He went on to remark that EAC employees might spend the Easter holidays at home, hinting at possible strikes during this time.

The Privatisations Commissioner has initiated a tender for the appointment of an independent energy advisor “to provide professional services regarding the preparation of a study for the legal unbundling, the corporatisation and the privatisation of the Electricity Authority of Cyprus, and the required regulatory review.”

EAC unions want the tender scrapped, and a new study initiated, to be carried out by them, the EAC and the energy ministry – taking the Privatisations Commissioner out of the loop.

The unions say the tender documents incorporate a memo put out by the ministry, which proposes that the energy regulator impose a power generation quota, or cap, on the EAC so that new players are encouraged to build power units.

The ministry has also proposed downsizing the EAC, selling off its assets to investors abroad, and leasing its most efficient power engines to local private operators.

The ministry memo is partly based on a study commissioned by the energy regulator late last year regarding changes to the energy market.

The regulator is currently examining stakeholders’ – including the EAC’s – comments on that study; it’s understood that the regulator will issue a finalised study sometime this month.

Under the terms of an international bailout deal, Cyprus has to raise €1.4bn by privatising state-owned enterprises.

Under the road map agreed by the government and international creditors, the EAC is to be transformed into a corporation governed by private law by the end of 2015, with all of the company’s shares held by the state. Full privatisation of the EAC – however this is implemented – must be completed by 2018.

EAC employees, who fret for their jobs, argue that privatisation as envisaged by the government will not lead to a drop in electricity prices.

The domestic price cuts announced Tuesday will be matched for commercial, industrial, and street lighting, the authority added.

By Angelos Anastasiou

Ten employees will be let go at the Cyprus Broadcasting Corporation as part of the broadcaster’s ongoing effort to consolidate costs, the board chairman told the House Finance committee on Tuesday.

Presenting lawmakers with the state TV channel’s 2016 budget, Yiorgos Tsalakos said the broadcaster’s budget has been slashed to half over the last three years – from €50 to €24 million.

This year’s savings will focus on content, including the purchase of feature films, rights to sporting events, and joint productions.

The aim, Tsalakos said, is for the CyBC to produce as much content as possible itself.

He explained that the broadcaster’s management has been instructed to proceed with firing staff based on operational needs, noting that there will be no political or other selection criteria.

“The board does not want to know which individuals will be asked to leave,” Tsalakos said.

The CyBC board chairman’s remarks drew criticism from political leaders and employee unions.
“We are living in times of increased sensitivity in government spending,” said DISY leader Averof Neophytou.

“But I feel that before someone tables staff reductions, they must have exhausted every other possible source of savings. DISY will not accept anyone’s victimisation while overspending that can be reduced continues.”

He added that the CyBC must not “thoughtlessly spend” funds to buy content, thus unfairly competing with privately-owned channels that operate without burdening the taxpayer.

“First we must look at unnecessary spending, and if we can’t find sufficient savings there we will look at the issue of staff, always through social sensitivity,” he said.

Even more scathing were the comments made by opposition AKEL leader Andros Kyprianou.

“I would like to remind the CyBC board chairman’s promise in our recent meeting that there would be no firing or redundancies before the necessary consultations with employee unions,” Kyprianou said.

He added that any unilateral decision on these matters will incur AKEL’s wrath.

“There should be discussion to find solutions, and releasing staff should be the last resort,” he said.

“This is not the time to push people into unemployment.”

CyBC employee union SIDIKEK PEO announced it will hold a union meeting on Thursday to discuss measures in response to the board’s plans.

“We condemn the CyBC chairman’s statement for the firing of ten colleagues in the coming period,” the union said in a statement.

Suggesting that the move is aimed at benefiting private TV channels, the union said it will not accept unilateral decisions.

“At a time when every new firing may trigger a new suicide, those who choose to paint their hands with the blood of the fired should know that it will bring consequences,” the union warned.

By Mike Collett

IT was much derided when announced but UEFA’s decision to expand the Euro 2016 championship to 24 teams has revitalised the qualifying competition with a host of countries daring to dream of making it to a major tournament, often for the first time.

At the halfway stage, countries such a Wales, Iceland, Northern Ireland, Albania and Norway, who have either never qualified for a major finals or been absent for years, are all in contention for a place in France next year.

At the same time traditional powers such a Italy, Germany, Netherlands, and holders Spain have all dropped points, while only England and Slovakia hold 100 per cent records with five matches played and five to come.

The English FA, for example, might have been less than happy to play the likes of San Marino, Estonia and Lithuania, but there is another side to the argument with far more meaningful matches being played because there are more slots available.

It is now nearly seven years since UEFA president Michel Platini announced the expansion of the finals from 16 teams, and faced heavy criticism that he had destroyed the “perfect format” and that by having 24, almost half of UEFA’s members, the tournament would be devalued.

But he now has good reason to defend the decision, initially instigated by his former general secretary, David Taylor of Scotland, who died last year.
“David must be credited for this and it is just a shame he did not live long enough to see it happen,” Platini said.
“He was right because look at the way the competition has opened up. The fact many more countries now have hope has lifted their game.
“European football is now of such a high quality that we do have 24 very good teams who deserve a place in the finals, why should they be deprived?
“It is still tough for them to qualify, but this is part of what UEFA does – develop football throughout Europe – and this is one way of doing it.”

Under the new format, the winners and runners-up from the nine qualifying groups plus the best third-placed team – with the results against the sixth-placed team discarded – comprise 19 direct qualifiers along with automatically-qualified hosts France.
The eight remaining third-placed teams will contest two-legged playoffs to determine the last four qualifiers.

As it stands, Wales are on course to take part in their first major finals since their sole appearance at the World Cup in Sweden in 1958.
In the past great Welsh players such as Ian Rush and Ryan Giggs missed out on major finals as did current manager Chris Coleman, whose unbeaten side are second on goal difference to Belgium with 11 points at the top of Group B.

Wales do boast Gareth Bale of Real Madrid, the world’s most expensive player, as well as the influential Aaron Ramsey of Arsenal and Coleman believes if they take another nine points from the remaining 15 available they should qualify.

“I played in Welsh teams in 1994 and 2004 where we nearly did it and now we have the opportunity to go a step further,” he said.
If the qualifying competition ended now, Wales would be among the finalists as would Iceland, who are a point behind the Czech Republic at the top of Group A – but five ahead of the Netherlands.

The closest Iceland have come to a major finals was reaching the playoffs for the 2014 World Cup in Brazil when they lost to Croatia.
Slovakia, three points clear of holders Spain in Group C, are also relishing the competition and are currently heading for their first European finals since they began playing as an independent nation from 1996.

Slovakia did appear in the World Cup in 2010, but a combination of their continuing good form, and the restructuring of the competition, could mean their long wait to sit at Europe’s top table will come to an end.

By Bejay Browne

For the second year running the ‘Passion Play’ will be enacted in the grounds of a historic church in Paphos and this year will take place on Orthodox Palm Sunday.

Organised by Fr Miguel de la Calle of St Paul’s Catholic Parish, people of all faiths are being encouraged to come together to take part in the performance on April 5, which is the western Easter Sunday this year.

The Catholic Church in Paphos will be staging the play which will take place outside Ayia Kyriaki church in Kato Paphos, also known as the Church of Saint Paul’s Pillar. Presenting ‘The Passion’ in the Holy Week of Easter is a tradition in many countries around the world.

Last year’s production, which featured a cast of local’s, was a success and enjoyed by both residents and tourists, who asked for it to be staged again.

Fr Miguel said that more men are needed to play soldiers and apostles to make up the cast of around 50 or so.

“If we could have more people taking part this year, it would be wonderful. Everybody is welcome and people of varying beliefs are taking part already.”

Fr Miguel said that the cast consists of various denominations of the Christian faith, as well as Muslims and Buddhists.

The ‘Passion Play’ – also known as the ‘Way of the Cross’ – is a traditional part of Lent and is a dramatic presentation that depicts the Passion of Christ, his trial, suffering and death.

This year the performance is being held on Palm Sunday and will see Fr Miguel play Jesus and enter on a donkey. Children are also being invited to take part. This year’s offering promises to be ‘slicker’ than last year’s enactment, as players experienced some technical problems with wireless microphones.

“We have already pre-recorded the audio. This includes a selection of parts from the Gospels, these have been recorded by a Cypriot actor and singer who has a wonderful voice. He has also recorded the voice of Jesus and the dialogue. The narrative has been undertaken by an English woman.”

Fr Miguel said the historic setting for the play was extremely special, as Saint Paul preached there about Christ. Tradition says that he was tied to a pillar and received 39 lashes as punishment for converting many to Christianity.

The Father, who is directing the performance, said: “We welcome anyone who would like to join us, either to take part or in the audience; it’s a meaningful and deeply moving experience. Easter is an important time to come together, to celebrate and to remember.”

He pointed out that the enactment is a good way to bring entire communities together and is especially important in Paphos as it is home to so many different nationalities who follow all faiths.

The cleric is currently organising rehearsals, costumes and flyers for the event and said that everyone is welcome to come along and to watch and join in the prayers and singing.

“We would very much like people to come along to watch and listen and join us with the singing and prayers.”

The play will be enacted on Sunday April 5t at 4-5pm, outside Ayia Kyriaki (St. Paul’s pillar) church in Kato Paphos. Entrance is free.

The Passion
Performance of the play. April 5. Ayia Kyriaki church, Kato Paphos. 4pm Free. Tel: 99-093988

The hardline Islamic State group took control of large parts of a besieged Palestinian refugee camp in southern Damascus on Wednesday, witnesses and a monitoring group said.

The Yarmouk camp, home to up to 18,000 people, has been caught between government forces and Syrian insurgent groups including Islamic State’s rivals such as al Qaeda’s Nusra Front.

“They pushed from the Hajar Aswad area and Nusra fighters have joined them, they have pledged loyalty to Daesh,” one witness said, using an Arabic term for Islamic State.

The witness and the British-based Syrian Observatory for Human Rights said clashes continued inside the devastated camp where food, medicine and water are scarce.

The Observatory said Islamic State controlled some of the main streets in the camp.