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New remand for murder suspects

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Author: 
Poly Pantelides

LARNACA court yesterday renewed an eight-day remand for two men being held in relation to a shooting in Ayia Napa in June.

The Greek nationals, 29-year-old Demetris Mamalikopoulos, and Anastasios Tsehilides, 41, have been remanded once in early August, after a hand-over from the Greek authorities.

The shooting took place on June 23 near the Red Square bar in the popular tourist hub of Ayia Napa.

Four of the men were security guards for Famagusta businessman Phanos Kalopsidiotis, who the police think was the target.

Police investigator Giorgos Economou told the court yesterday that DNA samples from cigarette stubs placed Mamalikopoulos across from the Kalopsidiotis’ coffee shop before the murders. Economou told the court last week that Mamalikopoulos had spent two days watching the coffee shop.

DNA samples also placed both men in a car, rented on June 19 when the two men arrived in Cyprus, which was returned on June 23, the day of the murder when they both left for Athens on different flights.

The police believe that Tsehilides allegedly drove the getaway car and Mamalikopoulos allegedly shot the men.

Police say they have CCTV footage placing the two Greeks at their hotel and at the crime scene, and that mobile phone records pointed to two collaborators. 

The police believe one of those is the mastermind. Mamalikopoulos denies calling anyone except his girlfriend.

The court previously heard that the two men changed hotels twice in four days, and called someone at Larnaca airport minutes after the murders.

It was their third visit in two months, Economou said. 

The victims’ moving car was shot at 3.24am on the day of the murders. The killer shot fourteen times, hitting the victims in the chest and head. The shooter then ran 50 metres towards a car, police said. Police found 14 nine millimetre shells from a Glock pistol at the scene but no murder weapon. Both men deny any involvement in the murders. Tsehilides has been assigned a lawyer as he is unemployed and has no property to his name, or a spouse to support him.

The police have been taking testimonies and are waiting on forensic test results.

Security was strong both inside the court and outside.


Cheese makers say no shortages expected

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CHEESE-MAKERS yesterday sought to assure consumers that no severe milk shortages would arise as a result of a recent intervention in the market by the competition watchdog.

Earlier this week milk suppliers warned of impending shortages after the Commission for the Protection of Competition (CPC) had ordered the Pancyprian Cattle Farmers' Organisation (POA) to supply Pittas Dairies with 65 tonnes of cow milk per day.

The cattle farmers say they have no choice but to comply with the order. But the quota imposed on them for supplying Pittas means they must reduce supplies to other dairy product companies, they claim.

But in a written statement yesterday, the Cyprus Cheese-Makers Association said no milk shortages would arise provided pasteurisers collaborated to ensure a smooth supply to the domestic consumer market.

The association said this would be achieved by temporarily diverting some of the milk quantities intended for cheese-making to pasteurisation.

It’s understood that, either way, August is traditionally a slow month for cheese-making and that cheese-makers operate at below capacity during this period.

However the cheese-makers said the fact they would be receiving smaller quantities of milk would impact their export business.

Companies risked canceling orders from abroad and dissatisfying foreign clients, the association said.

It said that in recent days the reduction in milk quantities has reached 40 per cent in some cases.

The competition watchdog counters that there should be enough milk to go around, accusing POA – which represents about 90 per cent of milk production on the island – of deliberately manufacturing a crisis.

Meanwhile cattle farmers threw another spanner in the works yesterday, announcing that the price of milk is set to shoot up within the next few days.

“Raising the price of milk is our only salvation,” said POA chairman Savvas Evangelou.

The rising prices of animal feed left them no choice, he explained.

Evangelou blamed the government for not allocating farmers all the subsidies they are demanding.

Reacting to the news, the Cyprus Consumers and Quality of Life Association called on the competition watchdog to intervene to stop the price of milk from going up.

Head of the association Loukas Aristodemou said it was unacceptable that fresh milk here costs three times as much as it does in Germany.

‘DNA test points to rape suspect’

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THE 37-YEAR-OLD man suspected of raping a 10-year-old Palestinian boy last week will be appearing in court today to hear the charges against him.

He is next expected to be referred to trial by a criminal court.

The man has been in police custody since last Friday, when he was identified by the alleged victim at Larnaca police headquarters. The suspect was there reporting to police as part of his bail conditions; he was free on bail awaiting trial for attempting to sexually abuse two other children (both boys) last year.

The alleged rape of the Palestinian boy took place last Wednesday.

Reports yesterday said that genetic material collected by authorities matched the suspect's DNA.

Police spokesman Lefki Solomontos told reporters: “We believe that scientific evidence, as well as other evidence obtained during the course of the investigation, will go a long way toward proving in court the offences under investigation.”

Today the police are expected to ask that the suspect remain in custody until the commencement of his trial.

 

 

Ryanair refunds for cancelled routes

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Author: 
Natalie Hami

RYANAIR yesterday assured customers who have booked any flights to and from Cyprus, which have been suspended as of November, that they would have their money refunded.

The low-cost carrier confirmed on Wednesday it would be suspending all flights to and from Larnaca airport this winter, starting in November, and cutting back from 15 to four destinations to and from Paphos. The announcement was made after arduous negotiations with the Cyprus Tourism Organisation (CTO) failed to have the flights continue throughout the winter period November-March.

Since 2010 Ryanair has been flying to four secondary European airports from Larnaca; Dusseldorf Weeze, Barcelona Girona, Bologna and Brussels Charleroi, and set up a hub in Paphos earlier this year from where it was operating 15 destinations.

Ryanair’s Maria Macken, sales manager for the Cypriot market said that as of yesterday the airline’s website had been adjusted to account for the suspended routes. 

Macken said that anyone who had booked on any of the cancelled destinations  for after November 1, would be contacted by the airline and would receive a full refund.

Ryanair ditched Larnaca until summer 2013, citing higher fuel costs. It has tried to negotiate higher financial incentives from the cash-strapped Cyprus Tourism Organisation but the talks were unsuccessful.

The airline was reportedly asking for double the incentives for the ‘promotion’ of its Larnaca flights.

In Paphos yesterday, the regional tourism board said that they were happy with what Ryanair had achieved there since it began flights in April this year. The four routes that will continue throughout the winter are:  Chania Crete, London Stansted, Milan Bergamo and Thessalonica.

“From the official statistics we have up until today Ryanair has accommodated more than 190,000 passengers while the company has significantly boosted the local and the island’s overall economy,” said Nasos Hadjigeorgiou, head of the board.

He added that one of the primary achievements had been access into new markets such as Sweden, Italy and Norway.

“It (Ryanair) contributes to the upgrade of the function of Paphos airport and has created new job positions in the tourist (sector), restaurants, commercial businesses while at the same time supporting small businesses in Paphos and islandwide,” said Hadjigeorgiou.

 

Fire ravages state forest

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A MASSIVE blaze raged into the night yesterday in a state forest in the Nicosia district, with firefighters on standby to ensure the flames did not reach inhabited areas.

The fire broke out in the ‘Aderfi’ state forest around 3.30pm, incinerating more than one square kilometer, according to Forestry officials.

More than 20 firefighting vehicles and 100 men were deployed in a combined effort by the Forestry Department, the Fire Department and Civil Defence.

Two firefighting planes and two choppers joined the efforts but had to stop operating at dusk.

One firefighter was treated for respiratory problems; no injuries were reported.

Senior Forestry officer Alekos Katalanos said tractors and bulldozers would be working through the night, moving earth to cut off the flames where possible.

The nearest villages are Ayios Epifanios, Askas and Palechori. Inhabited areas were not at risk at the time, Katalanos said.

 

Top aide was at deal signing ‘only as a friend’

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Author: 
Stefanos Evripidou

TOP DIPLOMAT at the Presidential Palace Marios Ieronymides yesterday denied allegations of a conflict of interest in his relationship with the Chinese investor interested in turning the old Larnaca airport into a commercial centre. 

Ieronymides rejected claims that he personally benefited from his “friendship” with Yang Qi, sole shareholder of Far Eastern Phoenix (FEP), the Cyprus-registered company that signed a deal with Hermes Airports on March 22, 2012 for a 19-year lease of the old airport. 

On the contrary, Ieronymides argued that he only had the country’s best interests at heart in all his dealings with Chinese businessmen. He pointed out that when serving as Cypriot ambassador to China- the post he held prior to his appointment as Director of the President’s Diplomatic Office- he encouraged many Chinese investors and property buyers to come to Cyprus. 

The Cypriot diplomat came under the spotlight on Wednesday after daily Politis reported that he was present at the signing of the agreement between Hermes and FEP. The paper also reported that his wife, Tatiana Ieronymides, was a co-director of FEP from its establishment in April 2009 until March 17, 2012, resigning six days before FEP signed the 19-year lease agreement with Hermes. 

Since then, the Chinese investor has been in negotiations with the government to extend that deal for a further 31 years. 

Hermes Airports released a statement after the article’s publication stating that Ieronymides made it clear during the signing that he was present as a friend of Yang Qi, not as a representative of the state. 

Speaking to the state broadcaster yesterday, Ieronymides said as ambassador in Beijing he undertook huge efforts to encourage Chinese investment in Cyprus. 

He only found himself at the signing of the agreement because he was the one taking Yang Qi to the airport to catch a flight, the morning after the long night of negotiations which sealed the deal. 

“I took him to airport, you can ask (Hermes Chairman) Mr (Nicolas) Shacolas, they didn’t let me leave, they insisted I stay for the signing so I highlighted I can stay as a friend but I represent no one,” said the diplomat.  

Ieronymides acknowledged that in hindsight, his presence there may have been wrong. “But I judged that they were two private companies, and made it clear that I don’t represent anyone.”

The ambassador said President Demetris Christofias was not informed about his or his wife’s role in the matter, adding that he was preparing a memo to give to the president’s office.  

He said his conscience was clear but that if necessary, he would hand in his resignation. 

He further disclosed that he accompanied Yang Qi at a second meeting, this time with Communications Minister Efthymios Flourentzos to discuss the investor’s desire to extend the Hermes agreement. 

“I took Mr Yang Qi to the minister, because he knew no one in Cyprus. I took him to meet the minister,” he said, noting that he exerted “great effort” to convince Yang Qi to invest in Cyprus.

Regarding his wife’s involvement in FEP, he said the company was set up in 2009 to invest in the Balkans, an idea which never materialised. His wife is of Serbian origin. 

“Mr Yang Qi decided to use this company for the airport project, and for ethical purposes my wife resigned and left the company six days before a private agreement between Hermes and Mr Yang’s company. Where is the flaw in that?”asked Ieronymides. 

He added: “My wife is director of a Serbian company and is on the board of another ten companies.”

The top diplomat questioned why no one mentions the fact that Yang Qi is the Cyprus Investment Promotion Agency representative in Beijing or that he is also Cyprus’ honorary consul in Macau. 

Ieronymides stressed that he “dedicated so much time” to securing Chinese investment in Cyprus, adding: “I don’t want anyone to say thank you or anything, but from Beijing I did my duty... the 150 residential property purchases (by Chinese buyers) in the last month in Cyprus, do you think that is by chance?”  

Flourentzos yesterday backed Ieronymides’ claim that he had no involvement in negotiations on the airport project. Once the Chinese investor requested a 31-year extension to the lease, the ministerial committee got to work on the proposal. 

“He had no institutional or any other kind of involvement, and neither could he,” said the minister.  

Flouretzos acknowledged that the government only found out in May that the majority of FEP’s shares (50.1 per cent) also belonged to Yang Qi. Before that, they were only aware that he owned the other 49.9 per cent.  

As for Ieronymides’ wife’s position as former director of FEP, the government discovered this fact last week, he said. Christofias was informed last Friday. 

Asked if the president was surprised, the minister replied: “He certainly wasn’t happy.” 

Parties across the political spectrum called for an investigation to provide full transparency and clarification of what exactly went on.  

DISY spokesman Haris Georgiades took it a step further, calling for Ieronymides’ suspension so that an investigation could take place.  

Regarding the 150 sales of immoveable property, Georgiades said immigration officials have complained to him about the diplomat, claiming Ieronymides put heavy pressure on them to issue permanent residence status to Chinese buyers.  

Ieronymides responded to the allegation: “There is a cabinet decision from 2009, which provides that any foreigner who buys a residence above €300,000 in value, has the right to get permanent residence.” 

He argued there was no way he could pressure immigration officials since a special committee headed by the interior ministry’s permanent secretary was responsible for giving such status. 

REPRESENTATIVE for FEP, Savvas Poyiadjis, yesterday issued a statement expressing the company’s “disappointment with the way its desire to invest in Cyprus has been handled, and particularly the huge delay and the many obstacles over a simple act of leasing” the old airport. 

“If for the Cypriot state, there are difficulties or insurmountable procedural problems for leasing the space of the airport, the company is ready to discuss purchasing private land, abandoning the idea of the old airport, provided that there won’t be other obstacles and that prompt procedures will be agreed allowing the implementation of the project within a reasonable time frame,” he said.  

Poyiadjis rejected any notion that the company received favourable treatment, arguing that, on the contrary, it has been subjected to “excessive checks”, casting doubt over whether Cyprus even wanted the investment to go ahead. 

He said the project is supported by the Chinese government, adding that the company is ready to provide full disclosure of its intentions in Cyprus, noting that “it has nothing to hide”. 

Sarris resigns after central bank pressure

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Author: 
George Psyllides

MICHALIS Sarris, chairman of troubled state-controlled Popular Bank resigned from his post yesterday following pressure from the Central Bank.

Sarris was replaced by board member Andreas Phillipou, who had spent years in banking supervision at the Central Bank.

In a written statement issued after the board meeting, Sarris said he resigned at the behest of the Central Bank but did not wish to comment further.

“Recently, the Central Bank Governor verbally expressed his desire that I depart, noting that this was also the position of the government,” Sarris said. “Since this is the wish of the regulator and main shareholder of the bank … then certainly I will respect it. I believe that this is not the right moment for further comments.”

Sarris was appointed in early 2012 to oversee the bank's recapitalisation drive – a difficult task after the heavy losses suffered by the bank due to its huge exposure to Greek debt.

Sarris said he had assumed the post “at a difficult time for the bank” following an invitation from the shareholders and the inducement of the authorities.

“I am only sorry that this development would not allow me to continue to provide my services to our country from this position during a difficult period for our future, which was the only reasons I accepted this position,” Sarris said.

Popular’s failure to come up with the necessary capital forced the lender to seek state assistance in late June.

Cyprus, which has been shut out of international capital markets for more than a year, had to seek a bailout to meet its €1.8 billion obligation to the bank.

Sarris’ departure had been rumoured for some time, mainly because of his frequent comments on fiscal slippage being partly to blame for Cyprus’ present predicament.

Sarris had served as finance minister under the previous administration, successfully ushering the island into the eurozone.

His name had been mooted in August last year to replace Charilaos Stavrakis, but his demand to have free reign over the economy apparently did not sit well with the administration.

He was also close with former Central Bank governor Athanasios Orphanides, whose term was not renewed when it expired in early May.

Orphanides has accused authorities of fiscal profligacy, which he blamed for Cyprus economic troubles, saying problems could have been averted had the state heeded his warnings sooner.

The government however, blames Orphanides for the banks’ exposure to Greece that led to the current troubles.

Sarris’ ouster followed the resignation of Bank of Cyprus CEO Andreas Eliades early in July, citing a lack of coordination in dealing with Europe's banking crisis as his reason for leaving.

Bank of Cyprus, the island’s biggest lender, rattled domestic markets by unexpectedly seeking €500 million in state support just prior to a regulatory deadline to bolster its core tier 1 capital last month.

 

CB boss says need to be realistic on economy

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Author: 
Elias Hazou

THE ECONOMY is not likely to come out of recession anytime before 2014, but the coming sacrifices resulting from an EU bailout will ultimately benefit the island, Central Bank governor Panicos Demetriades said last night.

He warned of painful measures such as negative effects on people’s income and also spoke of the importance of being realistic given what the economy is facing. 

“With the aid of the financial support mechanism, and through the consolidation of the banking system and of public finances, I believe we will see light at the end of the tunnel,” the Central Bank chief said yesterday in an exclusive televised interview with the state broadcaster CyBC.

“We do not expect the economy to come out of recession in 2013. But the foundations will be laid so that we can create a healthy economy for the medium-term,” Demetriades said.

He went on to acknowledge that people’s income would be negatively impacted as a result of necessary cutbacks.

“Some of the measures will undoubtedly be painful, but we can look at this as an investment for the future,” he said, adding: “It’s important to be realistic.”

Cyprus, with a runaway deficit, requested financial aid from the EU on June 25; since then, officials from the International Monetary Fund, the European Commission and the European Central Bank - known as the ‘troika’ - have twice visited the island.

The troika has stressed the need for the government to slash the expensive state payroll -- proportionately the highest in the eurozone – and introduce structural reforms.

Demetriades said a memorandum laying out the terms of the loan would be signed with the troika most likely by the end of next month.

The loan interest would be “quite low”, but on the flipside the repayment period would be relatively short although Cyprus expects to be granted a certain grace period, Demetriades said.

The top banker forecast that new capital would eventually start flowing to the island’s banks - starved for cash and in heavy need of recapitalisation.

This was key, he said, because economic recovery would come about from the private sector and its access to liquidity – rather than from the state pumping money into the economy.

Ever since the application for EU assistance was filed in June, the government has been at pains to blame the banks for the development, while Demetriades has announced there would be a thorough investigation into their loan portfolios and investments.

Meanwhile an investigation into whether banks may have misled investors into buying high-yield securities should be completed by late September, he said.

Investors say depositors were given advice by untrained staff giving them the impression they would have a stable, safe income from investing their savings into high risk securities.  When the Bank of Cyprus (BoC) and Popular Bank stopped paying interest and blocked off access to investors’ capital, a number of incensed people complained.

Demetriades pledged that if the banks would be subject to “sanctions” if found to have misled investors, but he did not elaborate.

 


Our View: The right questions need to be asked about airport deal

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AUGUST is usually the slowest month of the year for news, which may partly explain the big fuss made about the friendly relations between the director of the president’s diplomatic office, Marios Ieronymides and the Chinese businessman Yang Qi. 

Yang Qi is the owner of the company Far Eastern Phoenix (FEP), which is currently negotiating terms with the government for turning the old Larnaca airport into a regional commercial centre. Newspapers have been crying ‘foul’ because Ieronymides’ Serbian wife was a director of FEP when it made the airport proposal earlier this year. She stepped down in March, around the time the provisional agreement between the FEP and the government had been signed. 

Then again, Mrs Ieronymides, is a businesswoman in her own right and had been a director of FEP since 2009 long before the Larnaca Airport project had even been thought of. According to her husband, she had joined the company because it had plans, which eventually fell through, to undertake projects in the Balkans. She did the right thing in stepping down when FEP started discussing the airport project, because of her husband’s state position.

As for Ieronymides, his friendship with Yang Qi that dates back to when he was ambassador in Beijing, could hardly be described as unethical. All good ambassadors try to promote the commercial interests of their country when abroad and this is achieved by developing friendly relations with local businessmen. In the case of Cyprus, which does not have industrial products to sell, its ambassador would encourage foreign businessmen to invest in the island, which was what Ieronymides did. It was not as if there were hundreds of Chinese businessmen queuing up to invest in Cyprus and Ieronymides favoured the company of which his wife was a director.

Meanwhile, the negotiations between the government and FEP were the responsibility of a ministerial committee headed by the Communications Minister Efthymios Flourentzos, who said that Ieronymides had no role in the negotiations. He was present during the signing of the agreement with FEP as a friend of Yang Qi, which may have been unwise, given his state position. This is why there should be an investigation to establish if Ieronymides was guilty of any wrongdoing or improper conduct, because on the surface he does not appear to have done much wrong.

Perhaps there should also be an investigation into FEP, 50.1 of which’s shareholding is held in trust by Montrago Nominees Ltd. Yang Qi, who owns the 49.9 per cent of the company was also the owner of the Montrago shares, stated the law firm that represents him, but the government needs to look into the matter. It should also establish how a company with a share capital of a thousand euro could undertake a multi-million euro project. 

These are more important questions to answer than Ieronymides’ relations with the Chinese businessman. 

 

Hero’s welcome for Olympic champ

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Author: 
Elias Hazou

CYPRUS’ first-ever Olympic medal winner Pavlos Kontides was treated to a hero’s welcome at Larnaca airport yesterday, as his hometown of Limassol prepared to party well into the night.

Kontides’ flight arrived with about a half-hour’s delay, which only served to work the waiting crowd into a frenzy.

The airport terminal was flooded with fans, honking horns and holding up banners reading: “Thank you Pavlos.”

Fire engines sprayed a water arc on the runway close to the bay where Kontides’ plane docked. A similar honour was bestowed on the Anorthosis football club in 2005 after they eliminated Turkey’s Trabzonspor in the UEFA Champions League qualifying rounds, and to tennis star Marcos Baghdatis for progressing to the Australian Open final in 2006.

The crowd broke out in chants once a slightly weary but beaming Kontides finally walked out into the passengers terminal.

“I feel very proud and emotional right now,” Kontides said in his first comments to television news crews broadcasting the welcoming live.

“I cannot put these feelings into words. I’d like to dedicate this medal to my family, my girlfriend, my coaches – the folks who believed in me all along and supported me,” he said, promising yet more success in the future.

Kontides was greeted at the airport by Education Minister George Demosthenous and Larnaca mayor Andreas Louroutziatis, who handed him a commemorative plaque.

Donning an Olympic wreath on his head and proudly holding his silver medal in his hand, Kontides then waded through the crowd and boarded a bus headed for Limassol.

Kontides and his entourage were expected at the Limassol Nautical Club for an initial welcoming and party.

“From what I hear, there are going to be souvles [barbecue] until the morning hours,” his coach said.

A public welcome has been arranged for 6.30pm today at the Enaerios area in Limassol, where Kontides will be receiving various accolades from local sporting bodies.

Kontides’ Limassol Nautical Club is also expected to put on a sailing demonstration during the festivities.

This morning, the athlete will be honoured with the Grand Cross of the Order of Merit of the Republic of Cyprus.  He will be presented with the distinction in a ceremony with his family and President Demetris Christofias at the presidential palace.

Kontides won Cyprus' first medal at an Olympics when he took the silver in sailing's Laser class in Weymouth, England.

Currently ranked 11th in the world, Kontides gave up his university studies for two years, and suffered through a number of injuries during his training.

Cyprus started taking part in the modern-day Olympics at the 1980 Moscow Games.

Kontides said on the Cyprus Sailing Federation website that he was inspired by his father, himself a Cypriot sailing champion and former federation chief, to take up the sport at age 9.

His coach said yesterday that Kontides has potentially three more Olympic Games in him provided he stays fit.

 

Weapons found

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A 39-YEAR-OLD man from Larnaca was arrested on Friday in connection with charges of the illegal possession of offensive weapons.  

Acting on a tip-off, police secured a judicial warrant to conduct a search of the 39-year-old’s home and car where they found and confiscated three fake pistols, two knives, a black belt carrying a foldable baton and a pair of handcuffs, a sling, two more batons, and three walkie talkies.  

 

Petrol price hike

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THE PRICE of petrol has shot up by around 12 cents a litre in the last 20 days. According to state broadcaster yesterday, the latest price hikes were announced by Petrolina and Lukoil. In the most recent rise Petrolina announced an increase of 4.0 cents for unleaded petrol while Lukoil announced a 1.5 cents increase in unleaded petrol (95 Octane) and 4.0 cents for unleaded petrol (98 Octane). 

 

 

Heroin found

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MEMBERS of the Drugs Squad (YKAN) reportedly found a 1kg of heroin in a nylon bag in an open field in Nicosia yesterday. 

At around 8am, police were informed that a suspicious-looking nylon bag was lying in an open space in the capital. YKAN members went to the scene where they found the nylon bag. Inside were two cylindrical packages containing a beige powder believed to be heroin, weighing about 1kg. 

The Drugs Squad is continuing investigations into the confiscated bag. 

 

 

Suspected drugs’ death

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STATE PATHOLOGIST Sophoclis Sophocleous yesterday carried out an autopsy on a 29-year-old man found dead in his car on Friday. 

He has sent samples of the man’s blood and urine for tests to shed light on the cause of death. 

At around 3pm on Friday, a member of the public alerted police to the fact that a man appeared unconscious sitting in the driver’s seat of a car parked in a field in Nicosia. 

On arrival, police found the 29-year-old Georgian national dead in the car with an empty syringe lying on his stomach.  

 

 

Popular Bank restructuring to start next month

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Author: 
Stefanos Evripidou

THE NEW chairman of troubled state-controlled Popular Bank yesterday warned that the bank would implement a new restructuring plan at the start of next month which could include closing local branches and staff cuts  

Speaking to state broadcaster, Andreas Phillipou, who replaced outgoing chairman of the board Michalis Sarris on Thursday, said the Popular Bank will begin implementing its restructuring plan as soon as KPMG, the auditor enlisted to draw up the plan, completes its work by the end the month. 

The plan will be based on reducing the size of the bank, which will likely mean reductions in staff  and activity, he said, adding that any layoffs will be implemented as painlessly as possible. 

The new chairman confirmed that the bank will order a full and in-depth investigation to clarify how the bank got into the mess it’s in, noting that responsibilities will be apportioned. 

Earlier in the week, the bank- the island’s second largest lender- announced it will be shutting down branches in Cyprus and Greece, make staff redundant and cut wages as part of its restructuring plan. About 65 branches are reportedly due to shut down.  

Phillipou took over the helm after Sarris was pushed into quitting by the Central Bank governor who told the former finance minister that it was his and the government’s wish for him to step down. 

Sarris was appointed in early 2012 to oversee the bank's recapitalisation drive - a difficult task after the heavy losses suffered by the bank due to its huge exposure to Greek debt.

Popular’s failure to come up with the necessary capital forced the lender to seek state assistance in late June.

Cyprus, which has been shut out of international capital markets for more than a year, had to seek a bailout to meet its €1.8 billion obligation to the bank.

Sarris’ ouster followed the resignation of Bank of Cyprus CEO Andreas Eliades early in July, citing a lack of coordination in dealing with Europe's banking crisis as his reason for leaving.

Bank of Cyprus, the island’s biggest lender, rattled domestic markets by unexpectedly seeking €500 million in state support just prior to a regulatory deadline to bolster its core tier 1 capital last month.

 

 


Neophytou calls for probe into China deal

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Author: 
Stefanos Evripidou

DISY NUMBER two Averof Neophytou yesterday called on the government to launch a disciplinary investigation into former head of the president’s diplomatic office, Marios Ieronymides, regarding his involvement in a potential multimillion euro project to lease the old Larnaca airport. 

Speaking to CyBC yesterday, he said Ieronymides’ involvement in negotiations between Hermes Airport, the state and potential Chinese investor Yang Qi either as a friend or state representative most likely violated public service laws. 

Ieronymides submitted his resignation to President Demetris Christofias on Friday after press reports revealed that the former Cypriot ambassador to China was present when Chinese investor Yang Qi, who represents Cyprus-registered company Far Eastern Phoenix (FEP), signed an agreement with Hermes Airports on March 23, 2012, for the 19-year lease of the old airport. 

He subsequently accompanied Yang Qi to an introductory meeting with Communications Minister Efthymios Flourentzos to explore the option of extending the lease for a further 31 years with the government. 

It later transpired that he participated in a third meeting on May 10, this time between FEP and the ad hoc committee set up to evaluate the project’s viability. 

Complicating matters even further, Politis revealed that his wife, Tatiana Ieronymides, served as co-director of FEP for three years, resigning on March 17, 2012, just six days before the signing of the agreement with Hermes.  

The government said it was caught unaware by the revelation of Ieronymides’ presence in the negotiations and his wife’s role in the company. 

Ieronymides acknowledged that it was probably wrong of him to be present at those meetings, but maintained that he did nothing wrong. He said he was doing his best to encourage Chinese investment in Cyprus, and only acted in his capacity as a “friend” to Yang Qi. 

Neophytou argued that while Ieronymides has resigned as head of the president’s diplomatic office, he was still a diplomat who would return to work at the foreign ministry. 

He called on Foreign Minister Erato Kozakou Marcoullis to launch a disciplinary investigation against him. 

Acting government spokesman Christos Christofides said the government is not against launching an investigation against Ieronymides and taking other steps if deemed necessary.

However, Christofides accused the opposition deputy of purposefully trying to confuse two separate issues: Ieronymides’ behaviour for which the latter has already publicly admitted he acted wrongly, and the government’s handling of the negotiations. 

Meanwhile, representative of the Cyprus Investment Promotion Agency (CIPA) Christodoulos Angastiniotis yesterday clarified that Yang Qi has been providing services to CIPA since February 2011, for a retainer fee of €1,000 a month, to help organise investment conferences in China, attract investors to the island, and encourage residential property sales.  

He said CIPA was satisfied so far with the services offered by the Chinese businessman, noting that he has brought many Chinese businessmen to Cyprus, resulting in an increase in sales of residential properties.  

 

Pensioner and motorcyclist killed

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Author: 
Stefanos Evripidou

TWO PEOPLE - a 29-year-old man and 80-year-old woman - were killed yesterday in separate road accidents in Limassol and Larnaca while a third is in critical condition following an accident on Friday night. Three people have been arrested in connection with the accidents. 

The 29-year-old was killed riding his high-powered motorcycle without a helmet, while the pensioner was hit by a car trying to cross the road on her way to church. A third man was seriously injured when his car hit a rescue truck parked in a dimly lit area.   

At around 1.20am yesterday, 29-year-old Stelios Elias was riding his high-powered motorcycle on Leontiou A Street in Limassol very near to the city’s traffic police headquarters when he lost control, and was flung on to the road.  

Limassol traffic police officer Emilios Kaffas said Elias was not wearing a protective helmet at the time. “And based on preliminary investigations, it appears due to his high speed, he lost control, resulting in him hitting the asphalt and sustaining serious injuries,” said Kaffas.  

He was rushed to Limassol hospital where he died around 30 minutes later as a result of his injuries. 

Four hours later at around 6.30am, 80-year-old Anna Loizou from Karpasia was killed trying to cross the road at a spot where the traffic lights were not working in Larnaca. A 33-year-old man from Aradippou was driving his car on Ioanni Kranidiotis Avenue when in conditions still under investigation, he hit the elderly lady.. 

The 80-year-old was rushed to Larnaca General Hospital where she died soon after. 

Larnaca police spokesman Christos Andreou confirmed that the woman was hit while using the pedestrian crossing. 

“The traffic lights at the specific spot where the accident occurred were not in operation,” he added. 

The 33-year-old driver, who tested clean for alcohol consumption, was arrested to assist with inquiries. 

According to Larnaca Press Agency, Loizou was on her way to church, where she went every Saturday. Her funeral will take place tomorrow at 11am at the Ayia Thekli Church in Ayion Anargyron estate in Larnaca. 

A third person suffered serious injuries in a road accident on Friday night. 

At around 8.30pm in Ipsonas in the Limassol district, 24-year-old Antonis Elias sustained serious injuries when his double cabin vehicle hit a parked rescue truck. 

While driving on Elia Venezi Street in Ipsonas, the 24-year-old lost control and hit a pick-up truck parked on the right side of the road. 

Due to the seriousness of his injuries, Elias was transferred to Nicosia General Hospital where he was kept in the intensive care unit having suffered a fractured neck and head injuries.  

Meanwhile, police have arrested the 35-year-old driver and 49-year-old owner of the rescue truck for questioning.  

Police believe the truck was parked in a “dangerous” area, while lighting in the area was also inadequate for the driver to easily spot the truck’s location.

 

 

Tales from the Coffeeshop: Dear comrade, of course we will remember you

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Author: 
Patroclos

LACK of measure has always been one of our strong points as a country. We can always be trusted to go over-the-top whether we are quarrelling, protesting or celebrating.

Given this inclination, nobody could have been surprised by the OTT welcome and celebrations held for our first-ever Olympic medal winner Pavlos Kontides and broadcast live by our state broadcaster. You’d have thought he had just liberated Kyrenia given the fanfare and the laurels – quite literally - placed on his head.

This is not meant in any way to diminish his amazing achievement of which we are all proud and for which we would like to congratulate him personally. This is a 22-year-old kid that took on the best in the world and finished second – a super feat by any standards.

But did it justify the fire engines at the airport spraying a water arc on the runway or a welcoming committee of the education minister, the Larnaca mayor, the Bishop of Kitium, Limassol municipal councilors and a host of sports officials? 

The last time there was such a hero’s welcome it did not bring much luck to its subject. We gave the same treatment to Marcos Baghdatis after he became the first Cypriot to reach a grand slam final, the Australian Open final in 2006. He has not equalled this achievement since, plagued by injuries and poor form. Then again, this could be because there was priest in his welcoming committee.    

 

ON FRIDAY Kontides attended a special ceremony at the palazzo where he was honoured by the comrade president who bestowed on him a Grand Cross of the Republic and thanked him for lifting our spirits. 

He also lavished praised on the “historic and well-known Limassol family” of Kontides which “offered him pan-humanistic values and ideals at a time when these were being attacked”. 

The family must be AKEL voters because how else would the comrade have known what values and ideals the parents gave their son. And he would never have a praised a family of DISY voters, because they teach their kids neo-liberal values and to be nasty to other people.

It was hardly surprising that comrade Tof has tried to reap some personal benefit from Kontides’ triumph, hoping that some of the Olympic champ’s glory and popularity would rub off on him at a time when nobody loves him. He did not hide his desire to be associated with Kontides’ historic achievement during Friday’s ceremony, but said “Glory belongs to the winners. Glory is yours. Tomorrow nobody will remember that under the presidency of so-and-so we had won a medal, but everyone will remember Pavlos Kontides the Olympic winner.” 

The comrade should not take such a negative attitude. We will always remember that the only time Kyproulla won an Olympic medal was under the worst president in its history and will never forget to give him due credit for it.

 

PRESIDENT Vladimir Putin accepted an invitation from the comrade to visit Kyproulla a government announcement said, although the happy day has not yet been announced. 

The invitation was conveyed during a “very warm and very positive” half-hour telephone conversation comrade Tof had with Putin on Monday during which they also discussed “the conditions of further economic co-operation between the two countries”.

There was no mention in the official announcement of the €5 billion loan the comrade has been begging for, presumably because Putin has no intention of giving it. 

Asked about the loan the following day, charmless, apprentice government spokesman, Christos Christofides put the following spin on it: “What is important is for the procedure, we hope, to have a positive conclusion, but what I can say is that since discussions continue, apparently there has not been a negative response from the other side, at least at this stage.” 

Government mouthpiece Haravghi, having faith in the sweet-talking comrade was more optimistic. “It is thought that after the warm conversation the two men had, the effort to secure a new loan from Russia will be successful.”

 

WHAT we were not told was why the comrade called Putin on the phone on Monday. Was he sitting in his office with nothing to do and thought: “Maybe I will call my friend Vladimir and ‘stress the timelessly close relations between the two countries and two peoples … and express my thanks for Russia’s continuous support for a comprehensive, viable and just solution of the Cyprus problem and particularly for her stance in the UN Security Council’.” 

I suspect the reason he called was to make a grovelling apology for supporting the UN General Assembly resolution, approved three days earlier, which overwhelmingly condemned the Syrian government. Our potential lenders, Russia and China, voted against the resolution but our government could do no such thing. Now that it is in charge of the EU presidency it has to champion the EU’s position on Syria which is a bit different from that of the comrade’s friends. 

I hope Putin showed understanding for his close ally’s predicament and forgave him during their very warm conversation.

 

AWARE that there would be no loan from Mother Russia, the comrade has turned his attention to our new-found friends the Chinese. Our mole at the plazzo informs us that he has been manically trying to arrange a visit to Beijing, hoping that the personal touch would persuade his hard-nosed Chinese comrades to lend us a few billion.

Christofides meanwhile has declared that support for the Russian loan was more or less a patriotic duty. Those, who wanted to borrow all our money from the troika, “instead of playing hide-and-seek, should come out and say these things boldly to the Cypriot people.” 

The bungling idiots running the country have got into their heads that if we borrow less money from the troika it will impose less painful austerity measures or as the bright spark Christofides said, “the (bailout) terms are absolutely related with the amount (we need to borrow).” 

 

STAYING on the subject of China you had to feel sorry for the director of the president’s diplomatic office Marios Ieronymides, who found a Chinese businessman Yang Qi to invest in Kyproulla and is now being pilloried by the press because he sat in on a couple of the meetings that discussed the project.

He was also attacked because his wife, a successful businesswoman in her own right, had been a director of Far Eastern Phoenix, the Chinese company that would have undertaken the old Larnaca airport project in collaboration with Hermes. She had been a director long before the airport project was thought up and stepped down when the deal was about to be signed.

Speaking on a radio show on Thursday morning, Ieronymides mentioned something that nobody picked up. He attended the meeting at which the deal was signed as he had accompanied his friend Yang Qi to Larnaca airport. When he got there, the chairman of Hermes, Nicos Shacolas, insisted that he stay for the signing. 

Ieronymides told Trito radio show: “They insisted that I stayed. Ask Mr Shacolas, ask Mr Iacovou...” The presenter did not ask him which ‘Iacovou’ he was citing as a witness, because if it was who we suspect it was he had no business being at the signing either.

 

COULD Ieronymides have been referring to the rotund presidential commissioner, with the moustache, who is currently being paid 100 grand plus a year by the taxpayer to leak information to the press about the complete lack of progress of the technical committees?

And if it was him, in what capacity was he at the meeting? Was he there as a friend of Yang Qi, Shacolas or was he simply representing the interests of the Cyprus problem? Of course, it could have been another Iacovou, one who works for his living.

Then again the George Iacovou has been heard to boast that the taking over of the old airport by Yang Qi and turning it into a commercial centre was his idea. He may have been invited to the signing of the deal in March as the great mind who had up with the idea for the project.

 

AS WE are talking about directors of the president’s diplomatic office, nobody seems interested in Ieronymides’ predecessor Leonidas Pantelides, to whom the Polys Polyviou investigation into the Mari blast attributed neglect of duty. 

According to the report he had not kept the president informed about the state of the munitions, despite being briefed by the military about the hazards. Pantelides, to the surprise of legal circles, was not among those charged by the attorney-general. 

Not only this, but the president rewarded him for keeping him in the dark about the munitions containers, by appointing him permanent representative at our UN mission in Geneva, a posting all diplomats dream of. Some guys have all the luck.

 

MICHALIS Sarris, the ethical banker, was forced to resign as chairman of the Popular Bank, because the autocratic comrade wanted him out. 

Sarris had committed several mistakes that angered our wise leader – he was on friendly terms with public enemy number one, the former Central Bank governor, and he did not subscribe to the government myth that we applied to the support mechanism exclusively because of the banks – and had to be ousted.

He is also a Tottenham Hotspur fan which was anathema to Akelites, all of whom are Arsenal supporters.  

He was told to quit by the Central Bank Governor Professor Panicos, who informed Sarris that “this was also the position of the government.” As it was the position of the government, the independent state official agreed with it and was happy to act as the independent messenger of the comrade.

 

THE NEW chairman is Andreas Philippou, a former Central Bank employee in his seventies, who retired in 2003. A respected technocrat, he is unlikely to provide the dynamic leadership required by the fast-sinking bank, but the comrade probably considers him much easier to boss around than the strong-minded Sarris.

With Philippou in charge, there is no way the Popular will pursue the staff lay-offs and pay-cuts that Sarris was planning, because the great protector of the workers at the palazzo will not permit him to do such thing. He would rather they all lost their jobs than be blamed for pay-cuts and redundancies.

 

THE CAMPAIGN that our leading daily Phil has been conducting against the Turkish fish being clandestinely imported to the free areas bore results last week. A Turkish Cypriot, stopped by cops on the Pyla-Larnaca highway had 250kg of fish of Turkish nationality in his fridge-van.

The Turkish Cypriot admitted that he had not secured permission from the veterinary services of the Republic to bring the fish over, as is stipulated by the Green Line regulations. The driver claimed he did not go to the authorities because it was a Sunday and he could not wait another day for certification because the fish would have gone bad.

But what do the veterinary services actually do when the fish are taken to them? Do they test them for AIDS, mad cow disease, or bird flu? And when 200kg of fish need certification, do the services check every single fish before issuing the permission?

Meanwhile, the 250kg of fish confiscated were reportedly taken to the Kophinou incinerator and destroyed. What a waste.

 

 

 

 

Our View: Kontides, a role model on how to avoid endemic mediocrity

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PAVLOS KONTIDES, Cyprus’ first-ever winner of an Olympic medal, was given a hero’s welcome on his return to the island on Thursday. He was greeted at the airport by the education minister and then attended a party in his honour at the Limassol Nautical Club, where he had learned to sail. On Friday he went to the presidential palace where he was honoured by President Christofias and then returned to Limassol for more celebrations.

It was nothing more than he deserved. Pavlos is only 22 and won a silver medal in the laser category, considered one of the hardest and most competitive. He is obviously a talented sportsman but he would never have achieved what he did without continuous hard work, self-discipline and total commitment to the pursuit of excellence. He asked nothing of the state, as is the custom in Cyprus, nor from the Cyprus Sports Federation KOA, but he did have the full backing and unwavering support of his family. 

Pavlos is not only an Olympic hero but a shining example of what can be achieved through hard work, dedication and self-reliance. His example is all the more important in a country in which our youth have been encouraged to seek the easy and undemanding life of mediocrity. More than half of young adults, according to surveys, want a job in the public sector, the most uncreative, unchallenging and non-stimulating sector of the economy. 

The main opposition to the extension of the retirement age has come from youth organisations, protesting that this would delay and therefore restrict the number of public sector jobs for the young. When the legislature was voting on reducing entry salaries for the public sector, youths gathered outside to protest against the measure. Teaching graduates, meanwhile, have demanded automatic employment by state schools as soon as they received their certificate.

It is true that employment in the public sector is extremely attractive, a point noted by one of the members of the visiting troika. Public employees enjoy near-absolute job security; they are guaranteed annual pay rises irrespective of their performance; salaries are significantly higher than the private sector for fewer working hours; they have free healthcare, and the pensions are scandalously high. 

The downside, which seems of no concern to our youth, is that, in return for good pay and working conditions, they will spend their working lives doing unrewarding work and achieving nothing. It is an environment in which mediocrity is rewarded while excellence is punished, frowned upon or seen as a threat to the system. It is depressing that our education system produces youths with no drive, ambition and creativity, all of them clamouring for jobs as pen-pushers, paper-shufflers or teachers.

We often like to boast about the high proportion of university graduates we have, but what good is that if most of them seek a life of well-paid indolence in the public sector? It would be preferable to have fewer university graduates and more go-getter school leavers with an appetite for hard work and a willingness to take risks. This is the way to build a dynamic economy and create wealth. 

Unfortunately this is easier said than done in a society in which unions have eliminated healthy competition, ensuring that the lazy and mediocre are as well-rewarded as the few who attain excellence. They have also helped eliminate the work ethic that was such a key feature of Cypriot society in the past. When unproductive and shoddy work is so well-rewarded, the value of hard work is automatically diminished.

Under the circumstances, it is a true paradox that a society which rewards mediocrity and indolence has accorded hero status to Pavlos Kontides, a youth who achieved success through hard work, self-belief and the single-minded pursuit of excellence. He succeeded because he did not embrace the values of most Cypriot youths who seem to labour under the illusion that they have the right to expect maximum reward for minimum effort.

Perhaps Pavlos’ success will spark a change of attitudes. Social conditions are ripe for change given the recession, record youth unemployment and the freeze on public sector appointments. With the safe and easy option of the public sector no longer available, youths could then discover the drive and ambition to try new things, take risks and innovate. 

Surely anything must be better than making mediocrity a life choice.  

 

 

 

 

 

Municipalities in fight for survival

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Author: 
George Psyllides

 

 FOR THE past couple of months austerity-hit municipalities have been making desperate appeals, warning they will be forced to suspend services soon, or shut down altogether, if they do not receive some kind of funding from the state.

The latest plea for help to the government and parliament came on Wednesday, following a meeting of the Union of Municipalities.

“All municipalities are at risk of closure, maybe some less than others, but the general message is SOS,” union chairman and Famagusta Mayor Alexis Galanos said.

First the government and then parliament, cut funding by some €20 million altogether from approximately €90 million in total. The remainder - around €70 million - must be shared among the 30 municipalities, six of which were only created in the past couple of years.

Speaking to the Sunday Mail, Galanos said that despite pledges from the government, meetings with the finance ministry have been cancelled and the funding issue left unsettled.

“We’ll be in for a surprise when the municipalities start sacking people or closing down because they cannot stand on their own two feet no matter how many savings they make,” Galanos said.

Beyond state assistance, municipalities also get an annual levy for refuse collection, which they can only raise by up to 14 per cent per year.

The property tax paid by residents to municipalities goes to the state, while the professional tax which municipalities once collected was scrapped in 2002 with the state pledging that the government would reimburse municipalities for the loss of that revenue.

“The agreement was that municipalities would receive what they lost plus 6.0 per cent interest,” Galanos said.

That would have been €10 million this year, but this too has fallen victim to the cuts.

Galanos suggested bringing back the professional tax or allowing local authorities to raise money from other forms of taxation.

Lazaros Savvides, the mayor of Strovolos which is Nicosia district’s largest municipality and Cyprus’ second largest after Limassol, echoed Galanos’ concerns.

He said the majority of municipalities, in Nicosia at least, are having serious cash flow problems.

“If they don’t get additional funding they will have a serious problem functioning properly,” he said.

It appears some municipalities are in better shape than others, as regards cash flow at least, but if the credit squeeze continues there is a strong possibility that services will be reduced to the absolute minimum.

Not to mention the complete halt of development projects.

“Strovolos municipality has no problem whatsoever. We have the capacity this year to cover all the gaps without borrowing but certainly our development budget has been seriously affected,” Savvides said.

However, the general consensus is that 30 municipalities are too many.

Lellos Demetriades, who served as Nicosia mayor for 30 years between 1971 and 2001, had invited a UN expert before 1986 to give his view on the matter.

The expert more or less said that it would not be right to split the capital into six or seven municipalities - one for each development board as they were called at the time.

The proposal was for one municipal council with 12 members, six of which would act as representatives of each development board.

But that apparently did not fly with the politicians who thought it would be putting too much power in the hands of the mayor of Nicosia as he would be directly voted by the people.

Demetriades however is not totally against having a few separate municipalities to better deal with the residents’ immediate issues.

“I saw that many municipalities developed due to the activity of a particular mayor or council,” Demetriades said.

Demetriades, a popular figure among the capital’s residents pointed out that, in his days at least, local authorities never made ends meet from what they collected.

He said no important projects in Nicosia were done with money from the budget.

“I ‘stole’ money from wherever I could find it,” he said jokingly of public and private funds he managed to secure for projects like Laiki Yitonia and Famagusta Gate. 

Savvides, the Strovolos mayor, agrees that smaller municipalities find it harder to respond to their obligations and suggests that concentrating services, as a start, would resolve some of the problems.

“Now its municipal services and then it’s the political level, which is joining municipal councils,” he said.

The union has drafted a series of measures to cut costs and consolidate their finances, but that is something they must see with the government, currently too busy dealing with the island’s bailout.

“I believe 30 municipalities are too many for this island. I believe 30 mayors are too many. I believe many things can be done to have savings,” Galanos said.

 

 

 

 

Mayor of Famagusta Alexis Galanos
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