WE WOULD have thought that the authorities of a country that boasts the highest electricity rates in Europe would not have been averse to exploring the possibilities provided by renewable energy sources. More so in a country which has long hours of sunlight 12 months a year and is ideally suited for photovoltaic (PV) systems which turn sunlight into power in a clean and environmentally-friendly way.

In the past, PV modules were not cost-effective because of their high price and the Energy Services preferred to invest funds allocated to renewable energy sources in wind farms that are an eye-sore, noisy and unreliable. The authorities ignored the fact that there was not enough wind in Cyprus making wind farms inefficient. In addition to this the sudden changes in the strength of the wind caused surges of power, creating problems at power stations.

PV systems had none of these problems – there has always been an abundance of sunlight, and there are no sudden surges or falls in their power production. Every household could contribute to power production by installing a PV system, no matter how small, in contrast to wind farms which require an investment of millions. And now that the cost of these systems has almost halved, they have become the most cost-effective method of power production.

The biggest obstacles to the installation of these systems are the government and Electricity Authority of Cyprus which control approval of the systems. These controls were understandable considering that the government was directly subsidising PV systems and the EAC buying the power at a premium rate; applications for subsidies were complicated and it took a year, sometimes two, for an approval to be given. 

There is no state subsidy any longer and the premium rate at which power was bought is unnecessary now that the price of PV systems has been slashed. A household could install a system without a subsidy, sell the power at the unit cost the EAC charges consumers and pay off the investment in less than 10 years. The system would carry on producing power for another 15 to 20 years as most well-known brands offer 25-year performance warranties.

In short, there would still be an attractive incentive for households and businesses to contribute to power production in a clean and environmentally friendly way. But one more thing needs to be done – introduction of net metering by which a system owner would have the electricity his system generates deducted from his EAC bill. The government would be removed from the equation and all delays eliminated. 

A pilot system for the installation of 25 smart meters is currently under way, but the EAC, presumably fearing its monopoly would be affected is already expressing opposition to implementation of net metering. It claims that the electricity grid would not be able to cope with the extra capacity generated by thousands of small PV systems. Surely the grid could be made to cope. We think however, the real concern of the EAC is the fact that big PV systems could produce electricity at a much lower unit cost than the Authority and eventually threaten its dominance of the market.

POLICE ARE on the hunt for those responsible for kidnapping an 18-month-old child from his grandmother’s verandah  in Limassol yesterday, triggering a massive search for the missing toddler until he was found abandoned near a cemetery almost eight hours later. 

At around 8am, the 18-month-old Stavros Styllis went missing from his grandmother’s balcony on Karaoli Street in Ypsonas in the Limassol district. 

According to reports, his mother, a teacher, dropped both Stavros and his twin sister off at their grandmother’s in the morning before going to work. While his grandmother was changing the nappy of his sister in another room, Stavros was playing outside on the verandah. 

When the grandmother went out to find him, he was gone. Early reports suggested eyewitness accounts reported seeing a rental car speeding away from the scene at around the same time as the kidnapping. 

The boy’s father, a senior officer in the National Guard, was informed and almost immediately police launched a massive hunt for the toddler, sending out a helicopter while recruiting the help of the British bases, civil defence and other services.  

By mid-morning, the news of his disappearance was all over the television and radio, while a picture of little Stavros was disseminated across the internet, on online social networking sites like Facebook and Twitter, and spread like lightning around Cyprus through emails. 

Stavros was described as being 80cm tall, 11kg in weight, with short black hair, last seen wearing a red tracksuit with a Benetton label and a blue sleeveless coat. 

At around midday, police spokesman Andreas Angelides said that police had alerted all ports, airports and checkpoints of the missing boy. 

The search for the little boy intensified as the hours went by and word got round. At around 3.30pm, a widow, Lucy Constantinidou went to the Ypsonas cemetery to light a candle at her husband’s grave when she saw the child crying nearby, just in front of a shed made out of corrugated iron sheets. 

Fearful that the kidnappers were near at hand and might attack her, she stopped motorist Yangos Yangou who was passing by in his car and asked him to help her take the child. 

The two picked up the child who was shaking from the cold weather but dry, despite the earlier downpour in Limassol, suggesting he did not spend very long outdoors near the cemetery. 

The father was informed immediately and arrived at the scene- around 1.5km from the grandmother’s house- to collect his child. Looking confused, relieved and teary-eyed, the father held the child in his arms before taking him to Limassol hospital for a precautionary check-up. The child appeared to be in good health, though a little disorientated and dazed by the media attention.  

Head of Limassol CID Ioannis Soteriades said police were continuing their investigations into the kidnapping, noting that they were looking for more than one person. 

“We are investigating a kidnapping, which is a very serious crime, with a penalty of up to seven years imprisonment,” he said. “We believe there was more than one person involved,” he added. 

Police took around 20 statements from family members yesterday and took one family member in for questioning. The man’s car was also taken in to undergo forensic testing.  

Soteriades hailed the “unprecedented mobilisation of forces” to search for the little child, which included Cypriot police and a police helicopter, British bases police, the fire service, the army, civil defence members, the Ypsonas mayor and local authority employees, and members of the public who offered their support. 

“Because we are talking about an 18-month-old child, and I believe this mobilisation played a catalytic role in finding the child,” he said, implying that the kidnappers felt the web closing in on them and decided to dump the child near the cemetery before they were caught. 

Screen grab from CyBC shows Stavros Stylli reunited with his tearful father yesterday afternoon

ALL THOSE expecting the usual barrage of election-day clichιs were not disappointed yesterday as all candidates and party leaders made the obligatory post-voting statement in front of the cameras.

In a way, the clichιs are inevitable as campaigning is prohibited by law during voting hours so politicians have to restrict themselves, if they can, to praising the good work done by the election service staff and the mature behaviour of the voters. 

However, yesterday all the candidates engaged in some subtle election campaigning in front of the TV cameras after casting their vote. But there were still plenty of clichιs.

“Today, the people will speak,” declared House president Yiannakis Omirou, after voting in Paphos, getting the ball rolling with the mother of all election-day clichιs.

DIKO CHIEF Marios Garoyian, not surprisingly, said: “Today the people will speak,”  

While Stavros Malas repeated this sentiment with a few more words: “For many months the politicians were speaking. Today is the day for the Cypriot people to speak.”

Nicos Anastasiades did not hear anyone speaking, saying that “today people decide.” 

Giorgos Lillikas was more original than his rivals, his comment linked to his claim that he was the candidate of the citizens. 

“Power belongs in the hands of the citizens,” he said and added: “The citizens, with their decision are the ones who give meaning and substance to democracy.” 

It was a much more elegant way of stating the obvious.

THEY ALL had to thank the election staff for doing a great job. 

Lillikas thanked the election service, the registrars, the civil servants and the unemployed who were hired to help out because “they allow us to have a regular electoral procedure.”

Malas, being the government’s candidate, thanked the state services for “organising the electoral procedure impeccably,” and expressed the wish that everything would go smoothly.

Anastasiades was more specific again. He wished “absolute democracy would prevail in our country,” and was certain “that this conquest would not be affected by any third party, apart from the feeling of absolute respect for the result.”

Presidential and parliamentary elections have been going smoothly, without the slightest hint of trouble for the last 30 years, and everyone shows “absolute respect for the result.” 

Why do politicians always feel the need to express the wish the election procedure will go smoothly? Should they not take trouble-free elections for granted by now? 

PRESIDENT Christofias congratulated his interior minister and the Elections Registrar for working very hard to organise the elections, but also felt obliged to express the wish for smooth elections.

He hoped “these elections would go down as a model of democratic civilisation and political civilisation.” At least the president had a reason for this sentiment. “During the election campaign, this political civilisation had taken a blow,” he opined.

Lillikas was in complete disagreement, as he felt “a good election campaign was held without fanaticism or anger, which honours our civilisation.”

He did not specify whether he was talking about political or democratic civilisation.

CHILDREN are as popular as clichιs at the polling stations on election-day, for reasons, presumably to do with cuteness as well as to show that politicians are human after all.

Anastasiades’ two daughters are married and although they accompanied their father, they also brought along his three grandchildren, all sporting campaign scarves. Two were rather young and had to be held while the eldest, called Andis, proudly stood in front of grandad for the benefit of the cameras. 

A little girl was being held behind him, but insisted on resting her little hand on grandad’s shoulder while he was making his statement. Anastasiades not only arrived at the Lanition Gymnasium election station in Limassol with a big entourage, but there were a lot of people waiting for him as well.

The grandchildren were not in the least upset by the crowd with only the cameramen and photographers complaining about it as they could not get a shot of the candidate.

NO CONGESTION was reported at the Acropolis Lyceum in Nicosia when the Lillikases arrived to vote. They brought their teenage son Orpheas who also seemed to be taking the attention in his stride, coolly standing next to his dad while he was addressing reporters; Mrs Lillikas stood further back. Orpheas even went into the voting booth with his father.

 The exception that proved the rule was Malas, who arrived at the Archangelos Gymnasium polling station without any of his four children. He was accompanied by his wife and Akel deputy Nicos Katsourides who may have had the role of minder or father figure.

It was a big surprise the Akel candidate did not have a single child in tow. Akel chief Andros Kyprianou took his grandchild to the polling station as did the Christofias. Perhaps Malas will take all four with him next Sunday.

AKEL leader Andros Kyprianou with a grandchild

Nicos Anastasiades has plenty of grandchildren

Big Demetris and little Demetris

A FRAIL former president Glafcos Clerides was accompanied by Nicos Anastasiades to the Lycavitos School polling station in Nicosia.

“I came and voted,” he said. “I voted for Nicos Anastasiades.”

Asked if he felt touched by Clerides’ presence Anastasiades replied: “When your political father turns up to support you, it is only human to feel touched.” 

Describing Clerides as the founder of the party and moderniser of the Cyprus Republic, Anastasiades said it was “natural to feel emotional today, when despite his years he came to exercise his right to vote and strengthen our effort.”

He said Clerides had advised him to practise politics with a spirit of unity for the good of Cyprus.

Frail Clerides comes to vote for Anastasiades

EUROPEAN Central Bank board member Joerg Asmussen said yesterday he hoped a financial rescue agreement that would include privatisations with a new Cyprus government could be reached by the end of March.

He said the ECB was neutral about the outcome of the presidential election, where DISY leader Nicos Anastasiades took a commanding lead but failed to avoid a run-off next week.

"But we need someone we can talk to locally that we can negotiate an adjustment programme with," Asmussen said. "To secure the debt sustainability, we'll need to see, for example, extensive privatisations. The previous president rejected that.

"Now we'll have to take a look and see if we can negotiate a programme by the end of March," Asmussen said.

Anastasiades has pledged a quick agreement with the European Union and International Monetary Fund on a financial rescue, which investors want agreed before the island's woes derail progress in shoring up the rest of the eurozone's periphery.

Cyprus applied for international financial aid eight months ago, after Greece's sovereign debt restructuring caused huge losses for its banks. The island needs up to €10 billion to shore up the banks and a further €7.5 billion for its budget.

CONSERVATIVE chief Nicos Anastasiades's first round victory in Cyprus's presidential elections yesterday marks a stunning comeback for a veteran politician whose career was almost destroyed by a political gamble in 2004.

A sharp and rousing public speaker who pulls no punches, Anastasiades, 66, faces a runoff vote next week against leftist rival Stavros Malas.

But he is almost 20 points ahead, having clawed his way back into public acceptance after a debilitating defeat nine years ago, when he supported a United Nations blueprint to reunify the ethnically split island.

One of his monikers back then was "Nasty Nick", coined by popular  Cyprus Mail newspaper columnist ‘Patroclos’ for what is still sometimes perceived to be an autocratic, no-nonsense streak.

A decade on, the same columnist now calls him "Nice Nick", reflecting his growing popularity despite his reputation as a hot-tempered lawyer with a penchant for throwing ashtrays.

Along the way, Anastasiades has also cultivated impressive access to top policymakers including German Chancellor Angela Merkel, whose support will be crucial as he tries to piece together a financial rescue for the cash-strapped island.

"What is of importance when forming political alliances is that we build on what unites us, and not on what has divided us in the past," Anastasiades told Reuters last month.

He found himself on the wrong side of public opinion during one of the most divisive periods of Cypriot politics, when Greek and Turkish Cypriots were called to vote on a United Nations blueprint to reunite Cyprus as a loose federation.

Anastasiades and his Democratic Rally Party said "yes" to the plan, while 76 per cent of Greek Cypriots said "no".

"It’s not an issue of regrets," Anastasiades told Reuters when asked about his decision to back the blueprint. "It is an issue of accepting and respecting the will of the people."

A lot can happen in a decade of Cypriot politics. His bid for the presidency was supported by the Democratic Party, which, nine years ago, campaigned strongly against that same plan branding its proponents little short of traitors.

A few days after the referendum, unknown assailants threw a hand grenade at his home.

With the trauma of 2004 still fresh in 2008, Anastasiades purposely did not stand as a candidate for the presidency. Another party official ran instead, ultimately losing against incumbent President Demetris Christofias, the man Anastasiades now charges with running the economy to the ground.

Meawhile, his party cultivated close relations with affiliated centre-right parties in Europe -- arguably giving him better access to policymakers than incumbent Christofias, the EU's only Communist head of state.

One of the catchphrases of Anastasiades' campaign has been "Cyprus is Not Alone," a pointed barb to Cyprus's outgoing communist government, blamed for the worst economic recession in four decades, record high unemployment and empty coffers.

"It failed to react timely and effectively to the economic crisis...its policies were too much dictated by outdated left-wing dogmas instead of economic needs and realities," Anastasiades said in the interview.

While official Cyprus appeared to have trouble convincing its EU partners to swiftly conclude on a bailout deal, Anastasiades was holding court with Angela Merkel and several other centre-right European leaders last month at a hotel resort on the sun-drenched island.

Anastasiades, who has headed the Democratic Rally party since 1997, gained the image of the bruiser of Cypriot politics.

A member of parliament since 1981, he once led a parliamentary inquiry on why the Greek identity of Cyprus was overlooked in an opening ceremony for the University of Cyprus, giving the organiser of the ceremony a public dressing-down.

A heavy smoker who says he likes alcohol in moderate doses, loves an afternoon siesta and does not bat an eyelid when interviewers ask if he dyes his poker-straight brown hair (he does not, he says), some of the reported antics in his party headquarters - where smoking is freely permitted despite a government ban - have become urban legend.

One is that some of the many ashtrays in his book-panelled office would fly when he lost his temper.

"It never happened, but it doesn't bother me (that they say this)," Anastasiades chuckled during an interview with the Politis daily last month.

AKEL-backed Stavros Malas, who has secured a place in next Sunday’s runoff ballot, sought to rally supporters last night by promising that ultimate triumph was still in their grasp.

“This battle shall be victorious,” 45-year-old Malas assured fans who flocked to his election HQ shortly after the final results were in.

“We know that we have the obligation to give our country a future and prospects in these critical times,” he added, reiterating a pledge to form a national coalition government if elected to the top office.

Malas seemed also to extend a hand to independent candidate Giorgos Lillikas, who may be out of the race but has assumed the role of kingmaker.

“Historically, we have many things in common with the forces which supported Mr. Lillikas,” he said.

For his part, Lillikas was gracious in defeat, congratulating his two main rivals.

Despite not making the cut, Lillikas – whom rivals accused of being an ideological flip-flopper – promised to “carry on the fight.”

 “Ours was a tough and lopsided struggle. We were aware of the difficulty of challenging the establishment, the salaried party mechanisms. Today we have forged a new path, we have subverted certain rationales and conservative traditions which do not care for citizens and which place party patriotism above real patriotism.

“We have shown that citizens have both power and a voice. This is just the beginning,” Lillikas concluded.

The former Foreign Minister kept his cards close to his chest, refusing to be drawn when asked which of the two remaining camps he would endorse in the runoff.

AKEL supporters gather last night to celebrate their man Malas getting through to next Sunday's poll

At DISY headquarters people burst into celebration yesterday when state broadcaster’s CyBC exit poll gave DISY leader Nicos Anastasiades a majority win, only to become disappointed when it later became obvious that despite his lead, Anastasiades would not avoid a run-off.

A little after 6pm when Anastasiades was given a 51.1 per cent share of the votes according to CyBC’s exit poll, DISY’s supporters started applauding and cheering. 

 “That’s it, it’s done,” one person said stepping out of a conference room where she was watching the exit poll results, along with other supporters. Outside the headquarters, people started chanting slogans and waving (mostly) Greek flags in front of a monitor broadcasting the same exit poll. People hugged and kissed each other on both cheeks, while many got on their mobile phones to pass on the news. 

“Finally, we’ll see a brighter day,” a supporter said. 

All exit polls from the major TV channels concurred that Anastasiades would win, possibly from the first round and people were cautious but excited.

“We are optimistic in a restrained way,” DISY number two Averof Neophytou told reporters in the afternoon. 

DISY deputies and well-known supporters walked in and out of the headquarters, smiling and accepting people’s congratulations. People settled into their chosen style of celebration as they waited for the DISY chief to show up.

A few drivers started hooting their cars’ horns, going round the block to celebrate the perceived victory.

But as the evening wore on and authorities started counting actual votes, it started becoming obvious that Anastasiades would not get majority share. 

However, it took a while for people to be convinced.

Those who stayed inside in the headquarters’ lobby to wait for Anastasiades’ arrival were the slowest to realise. 

“I just talked to my missus and we reckon it’s an 80 per cent chance that Anastasiades will be the clear winner. There can’t be that much margin of error can there? It seems like we won,” an elderly man said who was waiting patiently for the DISY chief. 

Anastasiades showed up a little after 7pm, and people applauded and swarmed around him.

He smiled, but did not make any statements in front of the cameras, disappearing upstairs without making it clear when he would address his supporters.

Outside the building, people had stopped waving their flags and kept quiet. Inside the conference room, people were tense.

When about half of all votes were counted islandwide and Anastasiades had already settled in the roughly 45 per cent he would end up with, some held on to hope.

“They haven’t even counted most of Nicosia votes,” one woman said. 

“It’s still unclear,” another one said. 

But when roughly 65 per cent of all votes were counted, people started leaving. “It’s clear what’s going on and they’re still discussing it,” a man said referring to the continuing discussion at CyBC’s studio. 

“Anyway, it’s done already,” another man said as he made his way out, this time referring to Anastasiades’ run-off in the second round. 

When the majority of votes were counted, disappointed people started comforting each other. A young woman told her friend, “It’s okay, we will win next round”.  Many echoed her sentiment.  “Next week we’ll win,” a 59-year-old man said. 

Supporters outside DISY headquarters cheer Anastasiades on win to next round

ALMOST one-fifth of registered voters did not bother to visit a polling station yesterday, more or less confirming previous analyses.

Preliminary data on the final turnout put the total at 82.84 per cent, compared to 89.62 per cent in the last presidential elections in 2008.

The turnout during the 2011 parliamentary elections was 78.70 per cent.

In Nicosia, the turnout was 81.82 per cent, compared to 88.80 per cent in the 2008 elections. Limassol had an 83.24 per cent turnout, the Famagusta district 83.86 per cent, Larnaca 84.01 per cent and Paphos 84.00 per cent.

According to Chief Returning Officer Andreas Assiotis, the last ballot box was sealed at 6.10pm, paving the way for counting to begin.

CYPRIOTS have proved themselves unreliable respondents, bamboozling all the exit polls which yesterday projected an outright victory for Nicos Anastasiades.

All the pollsters were way off the mark, predicting that the DISY leader was on track to grab over 50 per cent of the popular vote, thus invalidating the need for a second round of voting.

They moreover underestimated the numbers for independent Giorgos Lillikas.

They did get it right when it came to forecasting that Lillikas would come in third, and also by awarding second spot to AKEL-backed Stavros Malas.

The exit polls were consistent in their error, yielding very similar projections for the three main contenders.

Cypronetwork’s poll, the largest with a sample of some 6,000 respondents, commissioned by the state broadcaster, gave Anastasiades anywhere between 49.6 to 52.6 per cent (with an average of 51.10 per cent).

The margin of error was 1.5 per cent.

Malas secured on average 27.3 per cent, and Lillikas took 18 per cent.

Sigma’s poll gave Anastasiades 49-52 per cent, Malas 24 to 27 per cent, and Lillikas 19 to 22 per cent.

In Antenna’s exit poll, Anastasiades got 48 to 52 per cent, Malas 23.5 to 26.5 per cent, and Lillikas 19.5 to 22.5 per cent. 

Similarly, the Mega channel reported 49 to 52 per cent for the DISY boss, 23.6 to 26 for Malas, and 20 to 22.5 per cent for Lillikas.

The results of the exit polls were announced within minutes of the ballots closing.

DISY officials appearing on television talk shows shortly after seemed excited that their man might carry the day from the first Sunday. Still, hedging their bets, they erred on the side of caution.

But by 7pm, halfway through the vote count, the extent of respondents’ untruthfulness became apparent.

Pundits and journalists were left scratching their heads as to how the surveys could have got it so wrong.

Yiannis Mavris, an elections analyst for CyBC, speculated that voters did not deliberately seek to deceive pollsters.

Rather, he said, “for psychological reasons” many people just coming out of the ballot booth tend to cite the candidate they think is most likely to win.

The final election results were: Anastasiades 45.46 per cent; Malas 26.91 per cent; and Lillikas 24.93 per cent.

According to political analyst Christoforos Christoforou, the discrepancy between the actual results and the exit polls was probably due to a combination of false disclosure on the part of respondents and the methodology used by pollsters.

For example, exit polls conducted by phone may not be able to reach some of the sampled respondents, however the no-response is still factored in.

A series of gallups conducted during the election campaign had given Anastasiades anywhere from 42 to 48 per cent. They had also predicted a low probability for a single round of voting.

IN THE END, there will be a run-off election on Sunday between DISY leader Nicos Anastasiades and AKEL candidate Stavros Malas who edged out Giorgos Lillikas by two percentage points. Anastasiades who took 45.4 per cent of the vote yesterday will be the clear favourite as he has a substantial lead over Malas and would need only a quarter of the Lillikas votes, which are now up for grabs, to reach the winning target of 50.1 per cent.

There are many ways to interpret yesterday’s voting as the representatives of the candidates appearing on television panels showed. DISY representatives were quick to point out that almost 75 per cent of the electorate had given the thumbs down to the AKEL government of President Christofias; AKEL representatives argued that if abstentions were taken into account, six out of 10 voters did not support Anastasiades. Both camps claimed their candidate was the winner, but AKEL would have a little more trouble proving this considering Malas received only 26.9 per cent of the vote.

Then again this was a very good showing indeed, considering he is a man with no political experience, standing for the party whose government is largely responsible for leading the country to the brink of bankruptcy. It is quite astonishing that more than a quarter of Cypriot voters could still back the candidate of a ruling party that proved its emphatic inability to govern over the last five years. AKEL discipline is obviously very strong and the number of hard-core followers is very big.

Over the next few days, both candidates will try to lure the voters of Lillikas, who secured an impressive 24.9 per cent of the vote, with the official backing of only EDEK, the electoral strength of which is no more than 8 per cent. The rest of the Lillikas voters were disaffected DIKO supporters (led by Nicholas Papadopoulos) and people, from other parties that back a hard-line on the Cyprus problem. 

Malas is already talking about forming a national unity government, in the hope of luring EDEK but no matter what he promises the party, this would be extremely difficult to achieve. EDEK had backed Demetris Christofias in 2008 and abandoned his government, in which it participated for a couple of years, in acrimonious circumstances. It is highly unlikely it would enter an alliance with AKEL again. As for the Papadopoulos faction in DIKO, there is no way it would do a deal with AKEL.

In short, Malas should consider it a big success that he is in the run-off, but winning it is out of the question, as opinion polls on a possible Malas-Anastasiades contest have consistently shown.

DISY leader Nicos Anastasiades won yesterday’s presidential vote but failed to garner the required majority and will now face off against AKEL-backed Stavros Malas in a runoff vote next Sunday.

Anastasiades won 45.46 per cent – some five percentage points short of an outright majority -- with second-place Malas gaining 26.91 per cent.

EDEK-backed Giorgos Lillikas ended a close third with 24.93 per cent.

The two opponents will be busy this week trying to forge alliances that will hand them victory.

They will also try to woo some of the 92,000 – or 16.86 per cent -- eligible voters who chose to abstain yesterday.  

“What is deduced by the strong election result is that the overwhelming majority of the people expressed the demand to rid the country of the AKEL administration,” Anastasiades said last night. “The result will transform into a clear mandate next Sunday by widening the political and social alliance and formation of a national salvation government. It is a victory for the forces who want us to turn a page." 

DISY had been hoping to win an outright majority, thus avoiding a runoff vote.

Exit polls suggested Anastasiades might be able to secure just over 50 per cent of the vote, but it quickly transpired that they got it wrong.

The DISY leader appeared optimistic that he will win the runoff, announcing that he would seek the support of other forces.

“I will turn to political leaderships in a bid to broaden further the social mandate for change and getting rid of a leadership that led us to soup kitchens, community markets, unemployment, and misery,” Anastasiades said. “I speak to the people who made a different choice today (yesterday) but also our fellow citizens who opted to abstain. Change concerns all of us.”

Across town, Malas made a few overtures of his own.

“We have a lot in common with the forces that supported Mr. Lillikas,” Malas said, mainly referring to EDEK.

Hundreds of AKEL supporters assembled outside Malas’ campaign headquarters, jubilant that Anastasiades failed to win and their candidate went through to a runoff vote.

AKEL, ostensibly at least, considered yesterday’s result a success, despite its percentage being lower than the 32.7 per cent it won in the May 2011 parliamentary election.

“Together we can tackle the crisis through growth, without harsh policies against the society,” Malas said, reiterating his pledge to form a coalition government if elected. “United we can win and will win for Cyprus and its people.”

Lillikas, who could now play the role of kingmaker, kept his cards close to his chest when asked if he would support any of his two opponents.

“Whatever we have to say we’ll say tomorrow,” he said.

Lillikas said he would support policies that would defend the sovereignty of the Republic of Cyprus and its national interests.

“We shall strongly oppose policies that undermine the future of our country, policies that cede our national wealth, and operate with the logic of unilateral concessions,” Lillikas said.

Analysts said the pro-bailout Anastasiades looked likely to win the runoff, but that the strong combined showing of his two main rivals who campaigned against austerity showed the depths of anti-bailout anger in the nation.

"This result means that Cypriots have not quite decided if Anastasiades is the man to get them out of the crisis. It will be a tough second round," Fiona Mullen, economist at the Sapienta consulting firm, told Reuters."It makes it a bit tougher for Anastasiades to persuade EU leaders that Cyprus is on the right path, that they will do what it takes to get a bailout."

Anastasiades has pledged a quick agreement with the European Union and International Monetary Fund on a financial rescue, which investors want agreed before the island's woes derail progress in shoring up the rest of the euro zone's periphery.

If successful in the runoff, Anastasiades faces a long list of challenges in convincing European Union and International Monetary Fund lenders to sign off on a rescue before the tiny state faces a €1.4 billion debt repayment in June.

Malas has campaigned on a pro-bailout but anti-austerity platform while Lillikas has rejected onerous terms tied to any bailout, saying Cyprus could swiftly extricate itself by using the natural gas reserves that lie under its shores.

"We have reached the bottom and we need someone trusted by Europe so that Cyprus can start developing again," said Lucy Iasonos, 52, one of hundreds of Anastasiades supporters who gathered outside his party offices to celebrate.

DISY leader Nicos Anastasiades is congratulated by supporters last night in Nicosia after gaining a huge lead

AKEL-backed Stavros Malas is also delighted at having reached the second round of polls next Sunday

EDEK-backed Giorgos Lillikas becomes a kingmaker

A FAMILY of four living at a stricken development in Armou in Paphos remain in limbo, unsure of their future, after their homes were declared unfit for habitation in November last year.

The luxury development was built by JNM developers. All of the houses, which were only built in 2004, have serious structural problems, from slanting floors, to the partial collapse of stairs, walls, swimming pools and patio areas. Outside drains are exposed in one garden and retaining walls have split. 

In November, homes had official notices placed on them stating the decree shall remain in force until such time as repair works deemed necessary by the District Officer are carried out.

A day later, owners were informed that electricity supply to their homes would be cut but it is still connected.

Simon Phillips, his wife Jen and their two children are the only family still living at the development. They say they are unable to move due to financial restrictions and the prospect of homelessness hangs over them.

Phillips said: “We don’t earn enough to take out a mortgage or to rent another property. I would only be able to afford a tiny apartment.”

He said he was also fearful of the possibility of looting if his home were left empty. “I received a phone call from a woman named Sonia…she works at the district office and placed the notices on all of our doors. She reminded me that we couldn’t stay as there is a ban order in place and that we have to move for our own safety. But I pointed out that although the other five houses have been affected and admittedly our outdoor space has too, including our entrance steps, car port, swimming pool and patio, which have all moved, our house has not.”

 “It’s similar to a fault line. We are in a unique position in that our house is behind this line while all of the other homes, and our front garden, are in front of it,” he added.

Phillips said he has appealed to a district official to return with an engineer to confirm his hypothesis but is still waiting to hear back. The Cyprus Mail was told the official was currently away.

‘Chucking a family of four out on the street surely can’t be a solution. I want to be compensated with a property of equal value and similar to mine. We paid for it outright and don’t have a mortgage. It cost us €250,000,” said Phillips.

He said that although several people had kindly offered temporary use of their holiday homes or empty properties, that was no way to live. “It’s impractical and impossible. We all need some peace and relief from this terrible situation.”

But he said if the electricity was cut off, as threatened, the family would be forced to move. 

A report by the president of Paphos’ architects and civil engineers association, Chrysostomos Italos was completed in June 2012 and has been handed over to the legal advisers of the homeowners. Italos places the blame firmly on the developer.

A WOMAN who gave birth in secrecy at a farm in Famagusta was remanded for eight days yesterday suspected of concealing the birth and of manlaughter, after a state pathologist said a post mortem indicated the baby was born alive.

State pathologist Eleni Antoniou who did a post-mortem on Sunday said that there was reason to think the baby girl had been born alive. 

“But it will only be clear whether this was the case after further tests,” Famagusta police spokesman George Economou said. 

The 41-year-old Bulgarian woman was admitted to Famagusta general hospital in Paralimni on Saturday morning. She had been bleeding since Friday afternoon when she gave birth at a farm in Famagusta’s Sotira where she worked. 

The woman eventually told doctors about the birth, adding the baby was born dead, and police found the body on Saturday evening, wrapped in towels among rubbish at the Sotira farm. The woman was arrested the same night – guarded in Famagusta hospital – in relation to concealing a birth, later adding manslaughter to the investigations, following the post-mortem. 

The remand hearing took place in hospital yesterday with the woman reserving her right to silence. She is expected to be released from hospital today, while still on remand. 

The 41-year-old woman arrived in Cyprus four months ago and has been working in Sotira.

Her employers told the police they were not aware of her pregnancy.

NICOSIA Criminal Court yesterday acquitted all the defendants in the trial for the 2005 Helios aviation disaster, spelling the end of legal proceedings here more than seven years after the crash which claimed the lives of 121 people.

The court dropped the charges as a matter of routine after the Attorney-general moved to suspend the prosecution of all five defendants.

The state prosecution cited “insurmountable difficulties” posed by a recent court decision in Greece.

Earlier this month a Greek court of appeals upheld a 10-year prison sentence for three airline executives found responsible for the accident, but gave them the option to buy-out their convictions for some €76,000 each.

The three, Helios’ managing director Demetris Pantazis, flight operations manager Giorgos Kikkides, and Bulgarian chief pilot Ianko Stoimenov, were found guilty of negligent manslaughter, a misdemeanour.

The Athens court acquitted a fourth defendant, a British engineer who had carried out the final checks on the aircraft before the fatal August 14 flight. He did not stand trial in Cyprus.

The decision in Greece was expected to complicate legal proceedings in Cyprus where the Supreme Court ordered a retrial after the Nicosia Criminal Court had acquitted the defendants, which also included Helios Airways as a legal entity and executive chairman at the time Andreas Drakos.

In court yesterday, the state prosecutor spoke of “insurmountable difficulties” to further pursuing the case against Pantazis, Kikkides and Stoimenov.

She cited the EU’s framework decision on the European arrest warrant, which has been incorporated into Cyprus law, as well as the legal principle of double jeopardy that forbids a defendant from being tried again on the same (or similar) charges following a legitimate acquittal or conviction.

As a result of the Greek decision, Drakos was the only remaining natural person as defendant in Cyprus, in addition to Helios Airways as a legal entity. Drakos did not face charges in Greece.

And since Drakos was considered “more removed from the charges of negligence” as compared to the others, there was little point in continuing the trial, the prosecutor argued.

Still, it’s understood that the Greek court’s decision against Pantazis, Kikkides and Stoimenov is not yet irrevocable. In order for it to become legally irreversible, the three must appeal the decision with Greece’s Supreme Court, which will have the final say either way.

Alternatively,  they could opt to drop the case by accepting their sentence there.

Raising a point of objection, George Papaioannou, defence attorney for Pantazis, said his client preferred to stand trial in Cyprus, given that the decision in Greece was not yet irrevocable.

His client was confident of being re-acquitted in Cypriot courts, which would clear his name once for all, he added.

But now, with the dismissal of the case, the public would never get to know the true causes behind the deadly air crash, Papaioannou said.

Helios and their lawyers have maintained throughout that there was not enough forensic evidence to pinpoint the precise cause of the August 2005 crash. As such, the airline executives could not be blamed for hiring (or for not sacking or not grounding) the two pilots, who according to the official accident report were primarily responsible.

The relatives of the crash victims, who for almost eight years have been seeking some measure of redress, voiced disgust at yesterday’s development.

“It seems the Attorney-general chose to hide behind the decision in Greece,” Nicolas Yiasoumis, a spokesman, told the Mail.

Having left the matter in the hands of the state, there was now little else the relatives could do, he said.

THE CENTRAL Bank will reportedly seek international lenders’ approval to officially inform banks about their recapitalisation needs, thus enabling the banks to accurately inform investors of their financial results for 2012.

It’s understood that the island’s two largest banks, the Bank of Cyprus and the Popular Bank, have asked stock exchange authorities for an extension on the deadline by which they are obliged to announce their yearly results.

The deadline for publishing preliminary results for 2012 is February 28. The two banks argue that they cannot meet that cut-off date as they have not yet been informed about the final amount needed for their recapitalisation. Announcing their results without factoring in this information might be misleading to investors, the banks say.

But an extension on posting financial results is prohibited by legislation governing transparency and market manipulation.

An extension can only be granted by the minister of finance via a decree.

But there’s another hitch. Investment managers Pimco have been hired to carry out a due diligence of banks to determine their capital needs ahead of an overall bailout package sought by Cyprus.

Under an agreement concluded with the island’s prospective international lenders - the troika - the findings of the due diligence would be made public only upon the signing of the final loan agreement.

Now the Central Bank wants to query the troika on whether the rules can be bent.

The Cyprus News Agency said the regulator would try to explain to the troika why there must be some alteration in the established procedure so that banks are informed about the amount needed for their recapitalisation based on Pimco’s scenarios.

The reported decision was taken at a meeting yesterday attended by Central Bank governor Panicos Demetriades, Attorney-general Petros Clerides, Securities and Exchange Commission (SEC) Chairwoman Demetra Kalogirou, head of the Cyprus Stock Exchange (CSE) Nondas Metaxas and Finance Ministry officials.

Reports said both the SEC and CSE cited concerns over leaks of sensitive information to the media regarding the status of Popular Bank and Bank of Cyprus, listed on the stock exchange. 

Such information includes the amount needed for the banks’ recapitalisation according to a due diligence report, which affects investors’ decisions.

Pimco’s due diligence is being monitored by a steering committee. It comprises representatives from the Central Bank, the finance ministry, the cooperative bank supervisory service, the IMF, European Commission, European Central Bank, European Stability Mechanism, European Banking Authority, and the European Central Bank.

On February 2 the steering committee received Pimco’s final report. The committee would next draw up a plan to determine the capital needs of the banking sector.

That’s only part of the problem with the Pimco report. The investment company has reportedly come up with a worst-case scenario of €10.1 billion for the bank’s capital needs - an amount which would raise the island’s debt to over 120 per cent of GDP and thus make it unsustainable under IMF criteria.

The government has come under fire for allegedly deliberately allowing the recapitalisation figure to be inflated in a bid to drive home its argument that the banks were to blame for the mess the economy is in.

But on realising that the figure quoted by Pimco could derail Cyprus’ request for aid, critics say, the government asked a second company to review Pimco’s report.

A FINANCIAL rescue package for Cyprus must be accompanied by close and continuous monitoring of its progress in implementing anti-money-laundering policies, the European Central Bank chief said yesterday.

Mario Draghi told European lawmakers that it was not sufficient to put all relevant laws on the books, adding the crucial part was implementing them.

A final deal should provide for “close monitoring” of anti-money laundering mechanisms on the island, he said.

Draghi said it was imperative for the next Cyprus government to emerge from elections to commit to a financial assistance programme.

“It is very important that a programme be agreed," Draghi told the European Parliament's Committee on Economic and Monetary Affairs. “We have to make sure we don't create financial instability.”

And a spokesman for the German finance ministry yesterday mooted March as the earliest date at which possible aid for Cyprus would be discussed at the Eurogroup.

“It now depends on how quickly Cyprus will be in a position for talks,” spokesman Martin Kotthaus said at a press briefing in Berlin.

“The topic will be on the table of the March Eurogroup at the earliest,” he said.

The government here has said it can cover the state’s financing up to April.

Cyprus’ request for a full bailout has apparently been caught in limbo due to disagreements between EU members, but also over allegations the island is a hub for money laundering.

Nicosia denies the allegations, but is wary of a proposal that its banking sector be audited by a private company.

Meanwhile, a report by Global Financial Integrity, a research and advocacy organisation based in Washington D.C., said suspected Russian money laundering was being facilitated through Cyprus.

Titled: “Russia: Illicit Financial Flows and the Role of the Underground Economy,” the

February 2013 report outlines remedies for the Russian government for cracking down on its underground economy and the transfer of illicit Russian capital.

That’s where Cyprus comes into play. The report considers a hypothetical case describing the mechanics behind the transfer of illicit capital:

“Say Company A in Russia exports oil to its Subsidiary B in the Netherlands. The transaction is undervalued at a price significantly below the world market price. The invoice for the transaction does not, however, accompany the shipment. Instead, the invoice goes to a re-invoicing company in Cyprus owned by the Russian exporter and there is re-priced at something more accurately reflecting the world market price.

“Customs administration in the Netherlands has no reason to question the invoice since the price is in line with prevailing norms. Subsidiary B turns around and sells the oil to another country in Europe at the world market price. Upon payment, it transfers the total revenues to the Cyprus re-invoicing facility, reaping a huge profit flowing into that account in Cyprus, a tax haven. At a later time, the illicit capital in Cyprus may be round-tripped back to Company A in Russia as recorded foreign direct investment.”

According to the report, “This stylized flow of goods and capital resulting from the under-invoicing of oil exports and related illicit and licit financial flows finds considerable support in recorded FDI [Foreign Direct Investment] flows between Cyprus and Russia.”

Citing data reported by Russia to the IMF, the report said Cyprus was Russia’s largest source and destination of FDI over the period 2009-2011.

“It is unlikely that Cyprus, with a GDP of around US$23 billion can manage to make such large investments in Russia unless those investments were financed through illicit assets from Russia,” it noted.

ECB boss Mario Draghi: bailout needs to be agreed

HUNDREDS of thousands of people were glued to their TV sets on Sunday for an average of over six hours, watching the presidential election coverage, according to the AGB Cyprus Nielsen audience measurement.

All major TV channels covered the elections with special programmes in place before and after voting closed collectively harnessing 578,810 viewers who tuned in even for just one minute, even more than the previous presidential elections when 566,090 people tuned in. 

Average viewing time came to 378 minutes compared with 366 minutes in 2008, Nielsen said. 

“The twelve minute difference is considered very large for TV, and shows viewers great interests,” Nielsen said.

TV channels CyBC, Mega, Ant1, Sigma and Plus TV broadcasted between them some 41 hours on the elections. CyBC led the way with 14 hours and four minutes of broadcasting material, Mega lagged behind with 11 hours and 28 minutes, Ant1 dedicated less time with just seven hours and 56 minutes, Sigma  seven hours and five minutes, while Plus TV settled with just two hours and 32 minutes’ coverage, Nielsen said. 

Viewing peaked between 8.25pm and 8.29pm when some 397,730 people were watching TV to see the final results. 

Some 317,440 people were watching TV between 6pm and 6.05pm on to see what the exit polls predicted after voting closed and exit polls were broadcasted. 

The battle of the ratings was won by state broadcaster CyBC which got 20.7 per cent share of viewings, followed by Sigma with 19.7 per cent, Ant1 with 18.8 per cent, and MEGA with 15.0 per cent, Nielsen said. However, cable channels and other channels that did not cover elections got a 22.5 per cent share.

THE government’s IT systems withstood a cyber attack which attempted to block the release of election results on Sunday. 

Authorities were on alert throughout election day after a group of hackers threatened to disrupt the elections by targeting state websites. A video posted on Saturday on the Internet by a group claiming to be the Cyprus branch of ‘Anonymous’ called on sympathisers to launch the attack at exactly 6pm on Sunday – the designated deadline for the start of the ballot count. 

Interior Ministry officials claim that these sorts of attacks happen sporadically, while police re-assured the public that it would be extra vigilant during the run-up to the second round of elections this coming Sunday.

“There was a DDOS (distributed denial of service) attack, also known as a cyber attack on Sunday, in an attempt to prevent the interior ministry from showing the results but also unauthorised attempts to reach other sites that were related to the elections,”  chief official for the Department of Information Technology Services (DITS), Andreas Kyprianou said. 

He revealed the department prevented any kind of attack by using the technology it possesses. “We always take every necessary measure to ensure the smooth-running of government online services,” he added.

Kyprianou stated that the attempted breaches of security of websites are common, especially during an election process.

“We cannot know for sure whether the known hacker group ‘Anonymous’ were responsible for yesterdays attack,” he remarked.

Kyprianou explained that DITS is constantly taking measures to protect government websites, not only during election-time. “We are responsible for the smooth-running of government online services, 24 hours a day, seven days a week and 52 weeks a year,” he said.

After reports emerged on Saturday that ‘Anonymous’ were planning an attack, Police Chief Michalis Papageorgiou contacted chief returning officer, Andreas Assiotis, to make sure all possible measures were taken to prevent any attack.

“The biggest problem anyone could have caused was delaying the presentation of the election results,” Assiotis said. “This only would have been temporary though,” he added.

Police spokesman, Andreas Angelides, said police were constantly monitoring the situation and would be extra vigilant during the week and on Sunday for the second round.

He also said that police would be looking into an SMS sent on Sunday informing people of electoral standings, something which is not permitted either on the day of elections or on the day before.

According to voting law, during the day preceding the day of voting, and during the day of voting, political advertisements, statements and events which are relevant to the elections are strictly prohibited.

THE upward trend of voter abstention in recent years was much in evidence during Sunday’s first-round when 16.86 per cent of the public chose not to bother contributing to the process of electing a new head of state.

Almost one-fifth of registered voters did not bother to visit a polling station, more or less confirming previous analyses according to political analyst Christoforos Christoforou.

“Before the elections my estimate was that there would be between 15 and 20 per cent abstention,” he said. Christoforou believes the number was neither positive nor negative. “I would say the amount of people abstaining was logical if we consider the trends over the last few years, taking into consideration that during the last presidential elections we saw around 10 per cent of people staying away from polling stations,” he added.

Although voting is mandatory for all citizens, Christoforou said that since 2001 when the law was relaxed, the number of people who have chosen not to exercise their democratic right has increased as they have gradually become disillusioned by the various politicians. “People have begun to realise that politicians and political powers don’t really keep their promises,” he said. “They haven’t succeeded in solving the Cyprus problem nor has Cyprus’ accession to the EU meant that the standard of living or quality of life improved,” he added. “Generally, people have grown tired of politicians baseless promises and decided to show that by not even showing up to vote,” he explained.

Compared to other countries, Christoforou believes Cyprus has a good turnout of voters, only falling behind Belgium and Luxembourg, which also has a mandatory voting law. “With over 80 per cent of people turning up to vote for elections where the three main candidates were perceived to be of a negative nature, the number shows that people on the island do still care who will lead them,” he said.

Christoforou revealed, although it appeared on Sunday that ruling party AKEL had not lost much of their vote despite being blamed for the Mari Naval Base explosion and the collapse of the economy, their candidate, Stavros Malas received around 40,000 less votes than the party’s previous candidate, President Demetris Christofias in 2008. “If you take into consideration that there are currently 30,000 new registered voters since the 2008 elections and the decrease in numbers from five years ago for Malas then it would appear quite a few people have grown tired of the current government,” he said. “According to exit polls, five per cent of people who voted for Christofias five years ago voted for DISY candidate Nicos Anastasiades,” he added.

Official data on the final turnout put the total at 82.84 per cent, compared to 89.62 per cent in the last presidential elections in 2008.

The turnout during the 2011 parliamentary elections was 78.70 per cent.

In Nicosia, the turnout was 81.82 per cent, compared to 88.80 per cent in the 2008 elections. Limassol had an 83.24 per cent turnout, the Famagusta district 83.86 per cent, Larnaca 84.01 per cent and Paphos 84.00 per cent.

The abstention rate for the 2011 parliamentary elections was 21.3 per cent, a figure almost double that of the previous elections.

December 2011’s municipal elections saw an abstention rate of over 30 per cent but Christoforou felt the reason the number was so high for those elections was that people perceive them as being of less importance than presidential elections. “Municipal elections are generally seen as being based more on the common interests of those seeking power, with most people voting for people they know,” he concluded.

Despite the abstentions, the voting rate in Cyprus is still higher than many other countries (Christos Theodorides)