PAPHOS police yesterday arrested a municipality worker and his female accomplice for stealing coins from parking meters in Paphos.

According to police spokesman Nicos Tsappis, the 47-year-old Cypriot employee and his 25-year-old Romanian accomplice were placed on a four day remand order by the district court yesterday. They were arrested on Thursday afternoon.

Tsappis said: “Paphos municipality performed checks of the parking meters in the town and discovered that the amount of money which should be in the meters didn’t tally up, they found that there was some missing.”

While parking fees had increased, the money coming in was less, arousing suspicions. 

The arrests were made after a complaint was lodged with the police by an internal auditor at the municipality who claims that following an audit performed at various parking meters of the city, there was a shortfall.

The police spokesman added that the 25-year-old woman, who worked at a betting shop owned by the municipality worker, had also aroused suspicions as she often deposited large amounts of money in coins at the bank.

According to the state broadcaster the pair were caught when authorities placed marked coins into the machines, which were then found in the possession of the Romanian woman.

Tsappis said: “The police are fully investigating this case and information suggests that this practice has been going on for more than one month.” State broadcaster said that more than €140,000 was deposited by the woman over the last two years.

A press release issued by Nicosia police headquarters confirmed that the pair was under investigation concerning a case of conspiracy to commit felony and theft by an employee.

Paphos Mayor Savvas Vergas expressed his sadness over what happened but said he would wait for official information from  police before deciding on the employee’s future at the municipality.

FAMAGUSTA District Court yesterday sentenced a businessman to three months in prison and fined him an undisclosed amount for failing to pay his employees’ salaries.

On top of the sentence, the man was also ordered to pay all the salaries due.

The labour ministry’s labour relations department yesterday announced there had been a worrying increase in bosses failing to pay their staff.

“(The department) will continue to criminally prosecute employers who, in violation of the Law for Protection of Salaries, make arbitrary pay cuts or don’t pay their employees’ salaries,” said the announcement.

It added: “Through the complaints we receive and the inspections that are carried out, the phenomenon has taken on worrying dimensions”.

According to the department, a total of 4,397 inspections were carried out on workforces in the first half of the year, resulting in 378 cases going to court for various violations. At the same time, previous cases were ruled on, resulting in fines of over €104,000.

“The Department of Labour Relations would also like to note that the Law for Protection of Salaries demands payment of salary on a steady systematic basis, weekly or monthly depending on the case, and it doesn’t allow any arbitrary cuts,” the announcement concluded.

PROPERTY prices for buyers may be down but so are rents on apartments, warehouses and offices, the latest figures show.

The latest index from the Royal Institute of Chartered Surveyors (RICS) shows “significant falls across Cyprus’ major urban areas, with prices and rents falling across all districts” in the second quarter of 2012. 

Over six months, the average rental price of a Nicosia two bedroom apartment went from €555 in March to €535 in June. In Limassol, rental prices for apartments went down from €502 to €479 in the same time period. 

In just three months, about €2,631 got shaved off the average buying price of a two bedroom apartment in Cyprus falling from €131,120 in March to 128,484 € in June. 

Compared to the second quarter of 2011, prices dropped by 10.2 per cent for apartments, 6.4 per cent for houses, 10.8 per cent for retail, 9.0 per cent for offices, and 12.0 per cent for warehouses, according to the RICS Cyprus property price index.

“[Prices] are going down. The country’s bankrupt and so are the banks. It’s as simple as that,” said member of RICS Pavlos Loizou who is in charge of the RICS Cyprus index.

 “Eighty-three per cent of Cypriots own their home so we don’t really have lots of people who want to buy… at this point you have almost 11 per cent unemployment which means that people who want to buy are putting it off,” he said.

Most investors in Cyprus and abroad, such as property developers who would have an interest in buying a property, are “also sitting on the fence waiting to see how they play it out,” Loizou said. 

If the state of the economy and property prices were the only thing concerning investors then they might be buying, Loizou said. 

What is going on is that no one knows if and what changes there will be in taxes and legal requirements.

Cyprus is due to borrow money from its EU partners and will be asked to restructure its economy and increase its income. 

Property developers cannot calculate what their income will be from renting out a property for the following year, since they might soon be asked to contribute a bigger proportion of their turnover, Loizou said. 

Or they might not. The point is that no one knows, “there are questions, e.g. are things playing out as they are in Greece?”

So what next for the following year or two?

“Paphos and Famagusta have seen their prices drop for years. Nicosia and Limassol started six months ago so prices for them are dropping at an accelerating rate,” Loizou said.

Nicosia – relying more on the state and the banks – will suffer more in the following year, Loizou said. 

“But the fact prices are falling is a sign the market is rebalancing,” he said.

“Between 2004 and 2008 when prices tripled we had just had a decade of stability and employment, banks gave loans out very easily. There was a state of euphoria, as if we were drunk,” Loizou said.

Prices are adjusting to a long-term average, he said.

Loizou said that when rent prices stop falling investors will know how much rent they will get from an investment and it will be a sign that offices are feeling robust enough to pay rents. 

But it will be a year and a half before that, he said.

Of course when it comes down to specifics, sweeping generalisations are useless, another member of RICS said. 

“The index is a mirror of what is happening now,” she said.

 However, unless investors feel they can track their property’s future, they will postpone making choices. 

And prices will probably continue dropping. 

RESIDENTS in various parts of the island enjoyed some respite from the scorching heat yesterday as showers broke out mid afternoon, bringing temperatures down to normal for this time of year.

According to meteorological officer Stalo Papachristodoulou, temperatures shouldn’t reach higher than 37 degrees Celsius inland and 35 degrees in the coastal areas until at least Tuesday.

Referring to the brief showers, Papachristodoulou said “there is some instability in the atmosphere, which has led to cloudy weather, as well as light rain and even storms”.

There could be more showers today and tomorrow, she added.

A YOUNG Norwegian tourist claimed she was attacked and raped in Ayia Napa in the early hours of Thursday.

The 19-year-old told police she had been walking along the road from Ayia Napa’s marina towards Nissi Beach Avenue at around 4am, when she was attacked by a stranger, who forced her into a secluded coastal area and raped her.

The teen was examined by state pathologist Nicolas Charalambous, who confirmed there were indications of rape, as well as cuts and bruises on her entire body.

The man in question is still at large.

A LARNACA court yesterday remanded a 34-year-old man suspected of raping a ten-year-old boy on Wednesday night.

The Greek Cypriot, who was remanded for eight days, was caught around midnight yesterday when the police tracked down a man matching the description given to them by the boy as well as a bystander who allegedly saw him loitering in the area before the incident on Wednesday evening.

The Palestinian boy was on his bike at around 9pm when a man on a motorbike forced him to go along with him to "show [him his] dog". 

The man then took the boy to a rooftop and raped him at knifepoint. 

The boy – who had to walk from the scene of the rape to the Larnaca police headquarters and tell the police what had happened to him – is doing well, said the head of Makarios children’s hospital, Costas Hadjicostis.

Police spokesman Andreas Angelides said that “the police started intensive investigations resulting in the arrest of the 34-year-old from the moment a complaint was made”.

“You understand that this is a very delicate issue so we will not say more,” Angelides said.

The Cyprus Mail was told that the fact the man’s look was “distinctive” had helped police find someone matching the description. They now need to do DNA tests and have the boy confirm whether or not he recognises the suspect as his attacker.

The police said the 34-year-old does not have a criminal record.

On Wednesday night, “a very scared little child” was taken to Makarios children’s hospital in Nicosia. 

The hospital has a specialised team to treat physical, sexual and psychological abuses along with the help of a state pathologist, Hadjicostis said.

He was doing better yesterday and the boy and his parents are getting psychological support, Hadjicostis said.

He said there is “a real increase of abuses” though he added that he had no statistics available.

“We are dealing with a serious incident of sexual abuse, which is also an issue that blights Cypriot society,” child commissioner Leda Koursoumba said. 

She said that through visiting schools and consulting with children she learned that sexual abuse is “part of reality for today’s youths”.

Sexual abuse incidents may be higher than those reported to the media and authorities, the association for the prevention and handling of domestic violence in the family said.

People should report cases to the police so they can keep a record even when no further legal action can be taken, the association said. 

 A free helpline is available at 1440 for information and support but it is not staffed around the clock.

THE government yesterday sought to play down its blunder of sending out an email to reporters with the names of the members of semi-state organisations accompanied with notes on their political affiliations and in some cases an evaluation of their ‘performance.’

The government on Thursday appointed the new board members whose names were released to the media late in the afternoon. 

But in addition to this list, reporters were also sent the list of the previous boards with the attached remarks.

The apparent mistake prompted a storm of criticism yesterday, as the government tried to defend itself.

“Political practices and procedures are judged by the result and not by some rough notes that usually accompany them,” government spokesman Stefanos Stefanou said in a written statement.

Beyond the political affiliation or beliefs of each member – for a couple there was just the word ‘cooperative’ -- the authors of the list included special remarks for some.

One was described as “very positive,” while another was deemed “negative.”

A member of another board ‘should go’ while another – apparently a member of AKEL – “didn’t show any interest for a long period and didn’t show up but when it was necessary he followed the party.”

Stefanou said the fact was that the large majority of the members of the old boards had been re-appointed.

“The boards include citizens from across the entire social and political spectrums of our country,” the spokesman said.

The main criterion was the readiness and potential to contribute, he added, rejecting suggestions that the board seats were filled by AKEL supporters. 

“In fact, even these rough notes prove this,” Stefanou said. “People appearing to be unsupportive to the government have been reappointed, while others, who seem to be very friendly were not.”

The opposition however was having a field day.

“The government’s gaffe put AKEL’s dated mentality in the spotlight,” said DISY spokesman Haris Georgiades. 

He added that the administration’s only preoccupation is to sort out their own and the complete control of the semi-state organisations by AKEL.

“While our country is going through the most difficult times and the economy is hanging by a thread they once more confirmed that they have other worries,” Georgiades said.

DIKO said the contents of the email were a political blunder that contradicted the principles of “political ethics.”

But the party spokesman also criticised the fact that the government had not consulted DIKO on any of the appointments but he did add that those were the exclusive right of the president and the cabinet.

Fotis Fotiou said the party was only represented with one member on the previous boards; now there were boards were DIKO was not represented at all, he said.

Thursday’s email blunder was not the first by this administration.

In June 2010, the secretary of AKEL leader Andros Kyprianou accidentally emailed the media his phone messages, which included details of a deal over who was being suggested for a senior public sector job.

Specifically, Michalis Pittadjis called to inform Kyprianou that the brother of AKEL MP Skevi Koukouma was put forward for the position of senior customs officer.

The man suggested that since Niki Hadjiyiannis – the wife of DIKO councillor Andreas Hadjiyiannis - also wanted the job and she would retire in 14 months to give her the opportunity and then afterwards “our man gets promoted”.

CONFUSION over the situation with Ryanair increased yesterday when the airline said it was suspending Larnaca flights from November, yet was taking bookings for Barcelona on its website at least up until next February.

The low-cost airline is currently in negotiations with the Cyprus Tourism Organisation (CTO) and airport operator Hermes. It wants to double the amount it receives from the CTO for promoting its Cyprus routes, citing increased fuel costs.

However when asked yesterday, Ryanair’s Maria Macken, sales manager for the Cypriot market told the Cyprus Mail in an email that the airline would be suspending flights to and from Larnaca for the winter.

“Due to a combination of high fuel costs and traditionally low fares during the winter we have had to suspend all routes during the winter 2012/13 season,” she said.

She added that they were not looking at summer 2013 yet but would make every effort to ensure they return by working with the airport and tourist groups.

However Hermes Airports’ spokesman Adamos Aspris, said they were still waiting for a reply from the airline.

“We were informed that they want to review it but we haven’t had their final positions to know which routes will be affected,” said Aspris.

Despite the confirmation from Ryanair on suspensions, flights to Barcelona Girona can still be booked throughout the winter from their website. However flights to Bologna cannot be booked from November. Flights to Brussels and Dusseldorf also cannot be booked throughout the winter other than a few at the beginning of November.

Asked via email how it was possible to book flights to Barcelona after November if Larnaca had been suspended, Macken said in her email: “Ryanair is unaware of any issues with booking flights on www.ryanair.com”.

The Cyprus Tourism Organisation (CTO) said this week they did not have the money asked for by Ryanair to keep it flying into Larnaca, putting in jeopardy the agreement that has been in place since 2010.

CTO chairman Alekos Oroundiotis said it was not financially possible for the CTO.

Questioned yesterday on the agreement made with the CTO, Macken said that they “never comment on rumour or speculation and cannot discuss confidential agreements”.

But sources close to the negotiations told the Cyprus Mail that Ryanair may have come out and said that they were suspending flights as a way of exerting pressure during the negotiations. The sources said other airlines were waiting on Ryanair’s response so they could step in and fill the gap. 

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 operates 15 destinations.

Reports suggest Ryanair wants landing fees abolished there.

WHEN the legislature approved the law making the appointment of the boards of semi-governmental organisations (SGO) coincide with the presidential term, the president sent it back, refusing to ratify it. The change in the law, reducing the term of a board from 36 to 30 months and barring directors from serving more than two terms, was deemed unconstitutional by the president for reasons that remain unclear.

The real issue was that President Christofias did not want the people he appointed to the boards now, to step down in March when a new president takes over and, by virtue of the new law, would be able to appoint new boards. He wants to keep his appointees in place for the full three years, more than two of which would be under another president. DISY, which drafted the law, claimed that appointments of directors should be made when a new president is elected as SGOs implement government policy.

The row has nothing to do with the constitution or more efficient policy-making, but is all about control. Parties want control of SGOs so they can engage in nepotism, promoting and appointing their people. This has been the case for as long as CyTA, EAC, Ports Authority, CyBC etc have existed and is the reason they are ridiculously overstaffed and their workers grossly overpaid. The average cost per worker at these organisations is in excess of €40,000 a year, while for the CyBC it is close to €70,000. All parties want to offer appointments at these organisations, which are decided by the boards, to loyal supporters. 

When George Vassiliou was president he distributed the seats on the SGO boards among all the parties, which took turns to promote and appoint their own. This may have seemed superficially fair – it prevented parties from bickering – but it made a mockery of meritocracy and ensured most SGOs were badly-run, inefficient and crippled by high labour costs as unions were always satisfied.

Needless to say, the proposal for the privatisation of SGOs by the troika was slammed by all the political parties, none of which is willing to give up these dens of party nepotism. Yesterday, the day after the government’s new appointments to the SGO boards were announced, all the political parties were hypocritically accusing the government of nepotism. This was not because they were opposed to nepotism, but because they were not allowed to practise it as well.

We hope the troika will insist on the privatisation of the SGOs because it is the only way to put an end to the party-sponsored nepotism that all the parties protest about when they are not allowed to practise it.

THREE OF the ten police officers involved in the vicious beating of two students were yesterday thrown off the force by majority decision of the Police Appeals Board, seven years after the incident.

In April 2011, three months after the officers involved escaped jail at the criminal court, they were fined a mere eight days wages each by the Police Disciplinary Committee. This decision was appealed by the assistant chief as hopelessly inadequate.

“The assistant chief appealed the sentence imposed on them as he considered it inadequate,” said police spokesman Andreas Angelides yesterday. It is practically unheard of for police to be kicked off the force in Cyprus. 

According to Angelides the Appeals Board judged that the three officers who were forced to resign yesterday had held the “biggest share of the responsibility and participation” in the incident.

Also in the ruling, the Appeals Board said the disciplinary fines handed down to another four of the officers – eight days wages – was also inadequate, and ruled that it be extended to include two years without annual pay increments, which are automatic in the public service.

It judged that the original punishment in the case of the remaining three officers had been justified and that it should stand.

The beating incident dominated headlines in 2005 after a 43-minute amateur video recording, leaked to Politis newspaper, showed the two students being repeatedly beaten as they lay handcuffed on the ground, by five plainclothes officers, including four MMAD (Mobile Rapid Reaction Unit) officers and one female constable, after they were pulled over for a routine ID check on Armenia Street in Nicosia.

At the police officers’ original trial which ended in March 2009, the three-judge Nicosia Criminal Court acquitted the defendants, prompting a furious Attorney-general to file an immediate appeal.

The acquittal sparked widespread condemnation, with demonstrations outside the Nicosia courts. Outraged members of the public formed a protest group called Alert and held a series of noisy demonstrations where they placed bananas on the doorstep of the main criminal court building in Nicosia, in reference to a Banana Republic. They also held up banners that read “Disgrace” and “This country deserves better.”

At the appeal at the criminal court in 2011 eight of the officers involved were given suspended sentences. The eight, including the female police officer, received sentences ranging from two months to one year, depending on the degree of their involvement. The sentences were suspended for three years.

Seven of the defendants had pleaded guilty to assault and causing actual bodily harm and the policewoman to deliberately failing to stop her colleagues from carrying out the offences.

The beatings sparked massive demos outside the courts

THE RUSSIAN Federation’s President Vladimir Putin yesterday accepted President Demetris Christofias’ invitation to visit the island, extended over the phone. 

The two presidents discussed “the conditions for further economic co-operation between the two countries” over a morning conversation, an official announcement said.

Christofias thanked Russia for last year’s loan of €2.5 billion, which Cyprus - shut out of international markets - obtained to finance its needs. 

The government - which has asked for an EU bailout - has requested another €5.0 billion this year from Russia. 

The state cannot support the island’s biggest banks that got hit by a Greek debt write-down and cannot recapitalise.

Christofias and Putin yesterday “reaffirmed their readiness to continue their co-operation”. 

It was not clear when Putin would be visiting. 

Famagusta mayor Alexis Galanos said yesterday that president Demetris Christofias had overreacted to his comments at an anti-occupation event on Saturday.

In his speech Galanos had said that “unfortunately we have learned to live with the problem of occupation but also hide it”. 

He said yesterday he had been referring to the EU’s tolerance of the occupation of the island’s northern half by the Turkish army and a tendency by authorities to hide Cyprus’ “wounds” for the benefit of official visitors.

Christofias - who hails from Kyrenia - said he was offended by the comments and that he was “truly sorry” he had shown up to be lectured. 

Commenting on Galanos’ view that the island’s dire position had weakened morale, Christofias said that the crisis was being used to blame the government. “Why not analyse its causes? Did it drop from the skies?” 

Galanos said that similar criticism on the Cyprus problem has been targeted towards all governments since the 1974 invasion, “why does [Christofias] take it personally?”

But AKEL spokesman George Loukaides said yesterday that Christofias was forced to respond to “unfounded criticism”.

Loukaides said that Famagusta was high on Christofias’ priorities.

Galanos said that his overall message was one of unity but a “touchy” Christofias “protested too much”.

POPULAR Bank - the island’s second largest lender - will be shutting down branches in Cyprus and Greece as part of a restructuring plan.

It announced that it will be making staff redundant and will continue shutting down branches. 

Popular Bank has reportedly enlisted auditor KPMG to draw up a plan by the end of the month. 

The bank needs €1.8 billion to recapitalise and has asked for state assistance to cope with significant losses after a Greek debt write-down at the end of last year. 

In both Cyprus and Greece, the bank will shut down branches and cut wages. 

In Greece, the bank will keep branches in urban areas and financial hubs, renegotiate rents, and reorganise staff structure. 

About 65 branches are due to shut down. 

Several hundreds of employees may be made redundant, Stockwatch, the online financial news portal, said adding that this was envisioned as a five-year plan. 

One way of reducing staff may be by encouraging employees to take early retirement. 

The Bank of Cyprus - the island’s biggest lender - is also due to change its communication structure to have top executive staff in Cyprus report directly to CEO Yiannis Kypri. Kypri took over from Andreas Eliades who resigned his post.

The Bank of Cyprus has asked for €500 million. 

WITHIN this week, authorities will appoint the members of a steering committee that will select an international firm to audit the loan portfolios of the island’s three big banks as well as those of two Greek subsidiaries and a representative sample of cooperatives, it was reported yesterday.

The Cyprus News Agency said the 10-member committee will select the firm that will carry out diagnostic checks on the loan portfolios of the Bank of Cyprus, Popular, and Hellenic as well as Greek subsidiaries Alpha and Eurobank.

A representative sample of cooperative banks will also be audited, CNA said.

Financial portal Stockwatch said the cooperatives could include large cooperatives like the Limassol Cooperative Savings Bank, and the Strovolos and Makrasyka Cooperatives. It would also include smaller cooperatives of professional bodies like the teachers and the police.

The committee will be made up of five local members and five from the Troika, CNA said.

The audit is expected to be complete by October.

“We should know the exact capital needs of the Cyprus banking system beginning of November,” CNA said, quoting an unnamed state source.

The source said the terms of reference are almost complete – the selection procedure for a firm “would take another week or two at the latest.”

Various figures have been floating around ever since Cyprus applied for a bailout on June 25.

Last week, ratings agency Standard and Poor’s said the island’s bailout would reach €11 billion – just over 60 per cent of GDP -- to recapitalise its banks, absorb further bank losses, and meet 2012-2014 borrowing requirements. 

About €6.6 billion or 36 per cent will be absorbed by the state to cover maturing debt and underlying deficits during 2012-2014, S&P said. 

Cyprus's two main banks suffered heavy losses from a write-down of Greek sovereign debt earlier this year which was backed by all EU member states, including Cyprus.

Popular and Bank of Cyprus racked up huge losses on their holdings of Greek sovereign debt, causing a €2.3 billion combined shortfall in their regulatory capital they asked the state to fill.

ONLY growth will reverse the difficult conditions faced by the economy, Labour Minister Sotiroulla Charalambous said yesterday, stressing that any measures as part of Cyprus’ bailout should not cause collateral negative effects.

But that appears to be easier said than done as Cyprus’ international lenders have warned of painful years ahead with non-existent prospects of growth.

Charalambous said the bleak situation faced by the economy can be reversed through growth “and this is a critical point for us in the ongoing discussion about the terms of applying to the support mechanism."

Officials from the International Monetary Fund, the European Commission and the European Central Bank - known as the "Troika" - have visited the island twice since Cyprus asked for financial aid on June 25.

 “What we have stressed during the two meetings we had with the troika is that we must be very careful so that consumption is not hurt to such an extent that would have negative consequences on the real economy,” the minister said.

The government has also emphasised that the economy’s positive prospects like tourism and hydrocarbons must also be taken into consideration.

It does appear however, that getting out of recession any time soon would be a tall order for Cyprus – and it will not happen before things get worse.

“What we have seen … is that your fiscal system is worse than what we expected,” European Commission representative Maarten Verwey told lawmakers on July 27, in a closed-door meeting of the House Finance Committee. “Again, I want to be honest with you. I don’t like what I am going to say, but there are no growth prospects this year nor the next. It will be a deep recession,” Verwey said, according to the translated transcript of the meeting obtained by the media.

“You cannot maintain your current way of life; if it continues … the government will not be able to continue to pay wages,” the EU official told MPs.

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

They said they did not expect a conclusion to the bailout negotiations until September at the earliest.

IMF representative Delia Velculescu recognised that Cyprus had succeeded in overcoming difficulties in the past, warning however, that this time round it was different because of the “strong winds of recession this year and the next.”

“And it would have been much easier to correct these things during the good times but today its much more difficult because we have bad times and worse to come,” she told lawmakers.

Velculescu said the troika was here to help the island, which was now faced with some very difficult choices in the next few months.

She also asked MPs to imagine what the situation would have been if the troika was not here.

“What you must compare is what would have happened if the troika did not exist, if we weren’t here and you had no access to any funding. This should be the point of reference,” she said.

A NUMBER of bank employees are said to have received death threats from angry investors who feel they were tricked into buying bank securities or converting their securities into what turned out to be dud shares.

This came to light yesterday following a meeting between a group of investors and the leadership of the Cyprus Securities and Exchange Commission (CySEC).

Accompanied by politicians, the investors queried the regulatory authority on whether it was possible to convert bank shares back into securities.

Kyriacos Aristeidou, a spokesman for the group, said that back in June a number of them were "pressed" by banks to convert their securities into shares. The bank shares in question were subsequently not listed on the stock exchange.

He said these investors number a little over 100, and their securities were worth between €3 million and €4 million - a small amount that would not affect the recapitalisation of the banks should the shares be re-converted into securities.

CySEC chairwoman Demetra Kalogirou promised the investors she would take it up with the Central Bank and the Popular Bank and that she would ask for a freeze on listing shares on the bourse "until the matter is cleared up."

She said that under the regulations, conversion of ordinary shares should be listed on the Cyprus Stock Exchange "as they are of the same category as already listed shares with a possibility of listing them for a period up to 12 months."

Eleni Chrysostomou, spokesperson for the Greens, told newsmen later that neither the Central Bank nor the Finance Ministry were without blame as both had been aware of banks' practices but nevertheless failed to warn unsuspecting investors.

A variety of disgruntled investors groups have emerged after the island's two largest lenders - in need of a bailout - collectively accumulated €1.4 billion in securities but stopped paying interest on them after making significant losses in the wake of a Greek sovereign debt write-down. 

The banks closed access to capital, affecting some 8,000 people.

The majority of the investors claim they were deceived by the banks into investing in securities without being told the risks by an authorised professional.

The government, unable to support the banks because of its growing budget deficit, itself requested an EU bailout on June 25.

The troika - a team of technocrats from the IMF, the European Central Bank and the European Commission – has reportedly recommended that either the banks buy the securities back at a discount or else the securities be converted to shares.

If the banks buy back the securities, investors would be accepting a write-down. Should investors get shares instead, then they will be offered shares at a nominal value of €1.0 although currently they are selling at a fraction of that.

The bulk of the investors have banded into the Bank Security Holders Association, which on Friday convened its first formal meeting.

In a written statement, the association reiterated its proposal for the banks to convert their securities into bonds with a 5.0 per cent interest rate, an expiry date of five years, and the option to retrieve 20 per cent of the capital each year.

The association sought to put paid to rumours circulating that Cypriot taxpayers would supposedly end up footing the bill for the "securities scandal." 

"What our proposal entails is that the banks give loans to the holders of the securities, using the securities as collateral, and that these securities would continue to count as Tier 1 capital. In this way, the banks' capital adequacy would not be affected," the statement said.

MILK suppliers are warning of severe shortages this week as a result of what they call a misguided intervention in the market by the competition watchdog.

In late June the Commission for the Protection of Competition (CPC) ordered the Pancyprian Cattle Farmers' Organisation to supply Pittas Dairies with 65 tonnes of cow milk per day.

The Pancyprian Cattle Farmers' Organisation (POA) is a collective of the individual cattle farmers organised as a limited liability company.

The CPC issued the interim order - valid until the end of the year - after Pittas filed a complaint against the cattle farmers, who represent about 90 per cent of milk production on the island.

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.

Under the order which went into force last Friday, POA began giving Pittas 25 tonnes for the first five days, going up to 65 tonnes as of tomorrow.

POA chairman Savvas Evangelou yesterday blamed the watchdog's decision on any milk shortages that might arise.

Hitting back, CPC head Loukia Christodoulou accused the cattle farmers of seeking to create a problem out of nothing in a bid to use their market clout to put a chokehold on the watchdog.

Speaking to the state broadcaster, Christodoulou argued that the CPC never imposed any restrictions on the cattle farmers' supply methods.

"The CPC did not force POA to stop providing milk to pasteurisers," she said. In a loaded comment, she went on to ask why the cattle farmers had singled out milk supplies intended for pasteurisation and not for other dairy products.

Christodoulou pointed out also that the 65 tonnes are less than what Pittas used to get from the cattle farmers previously -- hinting that logically there should be no scarcity of milk now. 

Yiannos Pittas, a manager at Pittas Dairy Industries, told the Mail that up until last December their company used to get some 80 tonnes of milk daily from POA.

In December the company decided to stop receiving milk from POA due to a dispute over their supply contract, which they said was unfair.

As a result, the company had since been operating at about 20 to 30 per cent capacity, Pittas said.

"We feel that, handled properly, there is now no reason why milk cannot be distributed smoothly to all dairy companies," he added.

The cattle farmers say Pittas' decision in December created excess capacity, as a result of which they had to dump some 3.5 million litres of milk between then and March this year.

The backdrop is a financial dispute between POA and Pittas; the cattle farmers say the company owes them payment of around three months' worth of milk supplies.

Some time after the dispute, Pittas had approached the cattle farmers asking for a new arrangement, but were turned down.

In its ruling, the competition watchdog had ordered the cattle farmers to supply Pittas with cow milk until such time as the legal dispute is resolved. The CPC also accepted Pittas' argument that being denied milk would devastate the company's operations.

The CPC further found that POA had abused its dominant market position through its refusal to supply Pittas.

According to the watchdog, the cattle farmers had squeezed out Pittas by engaging in 'vertical foreclosure', a type of anti-competitive behaviour. It said POA had moved into the cheese-making business by buying out Papouis Dairies Limited, a direct competitor of Pittas.

In order to cope, Pittas had in the meantime secured milk supplies from other dairy companies, who in turn bought them directly from POA. Moreover, this was well-known to the cattle farmers, the watchdog said.

POLICE said yesterday they were not responsible for deciding who remains in custody before a trial after it emerged that the man identified as the rapist of a boy last week was free on bail awaiting trial for attempting to sexually abuse two other children last year.

The 10-year-old victim identified the 37-year-old Greek Cypriot at Larnaca police station on Friday night when the suspect went to report to police as part of his conditions of bail. The suspect has previously been imprisoned for manslaughter and is charged with trying to sexually abuse two minors in Nicosia.

Asked yesterday why the suspect had been freed on bail and not kept in custody until his trial, police spokesman Andreas Angelides said it was not the police’s decision.

“Our job is to file cases to court that has jurisdiction to decide, depending on a case’s severity, whether it will release, keep in custody or release under terms any persons,” Angelides said. 

In other words, it was a court judge who allowed the 37-year-old to be released on bail. 

Asked what the police could do when people with criminal records were released pending other trials, Angelides said “it is a delicate line”.

Asked how the 10-year-old Palestinian boy came to recognise the suspect as his attacker Angelides said, “there are specific recognition methods and what we have at our end is the child’s recognition of the suspect and his motorcycle.”

The boy had walked to Larnaca police station on Wednesday night, after a man on a motorcycle had forced him to go with him to “show (him his) dog”. He said the man had taken him to a rooftop and raped him at knifepoint.

A 34-year-old man was initially remanded after a witness placed him at the scene but was let go when the boy recognised the 37-year-old at Larnaca police headquarters on Friday night. 

Angelides said that “certain suggestions based on the existing legislation will be made so that we are more effective but - besides parliament that amends or votes through laws - other services must be engaged so that everything is laid out in a more organised way”.

The results of genetic testing are expected within the next few days to confirm whether or not the 37-year-old is the rapist, Angelides said.

In the meantime, the 37-year-old is remanded in custody.

Angelides said that specially trained staff are conducting the investigations “because there are specific issues that need to be handled in a certain way different to ordinary cases”.

In the meantime, deputies were to explain yesterday what parliament has been doing to protect children from these type of crimes.

DISY’s Stella Kyriakidou said that a single law could not generalise among sex offences because the state needed to take on prevention and training and other aspects. 

She said that at least 70 per cent of sexual abuse towards minors comes from relatives and family friends.

But she added that the law needed to change to protect children and communities from sex offenders.

Ruling party AKEL MP Adamos Adamou agreed but said parliament needed to launch legal changes immediately.

DIKO’s Athina Kyriakidou said that children needed to be taught how to differentiate between normal and abusive behaviour. 

Cyprus has signed an optional protocol, part of the UN’s charter on children’s rights but has not ratified it yet.

The protocol is designed to protect children against exploitation. 

For a year and a half, deputies and government bodies have been discussing ratifying the protocol and creating a stricter legal framework to protect minors. 

“GOD forbid, if as a consequence of the economic crisis, messages of pessimism are sent and we turn ourselves into the best allies of Turkish expansionist policy...” said AKEL’s presidential candidate Stavros Malas at the weekend. “Divisive messages must not be sent to the people, 38 years after the invasion, but messages of optimism and hope.”

He was echoing the comment made by President Christofias at the anti-occupation gathering, a couple of days earlier, when he said: “But leaders of all groupings cannot step up, deepen and multiply, from such platforms, the disappointment of people. We must give hope to people.” 

The comments were primarily made in relation to the unsolved Cyprus problem, and were indicative of the condescension that arrogant politicians show for the people. What do they mean about giving hope to people? Are they suggesting that they should tell us lies, set unattainable targets or promise us that everything will turn out well, despite knowing that it would not? 

Without meaning to, Malas and Christofias are implying people are neither intelligent nor mature enough to make up their own minds and require their wise leaders to encourage optimism and give them false hope about the future. All it would take were a few empty promises by political leaders and the people would look to the future with renewed optimism.

It is an antiquated view of leadership that thrived in under-developed democracies in which people unquestioningly accepted what they were told and showed excessive deference to politicians. These days are long in Cyprus. A growing proportion of the population have learnt to view the politicians with mistrust and a healthy dose of cynicism, which is why the abstention rate at elections keeps rising.

What message of hope and optimism could be given to people regarding the Cyprus problem? Would anyone believe Malas if he said that all refugees would return to their ancestral homes and Turkish occupying troops would pull out of Cyprus? Would anyone believe Christofias if he said that the fenced area of Famagusta would soon be opened to its Greek Cypriot inhabitants? 

Rather than give people hope, such statements would make them laugh, as they have been hearing optimistic and hopeful statements about the settlement of the Cyprus problem for the last 38 years, with nothing ever happening. The politicians have failed spectacularly to deliver on their promises, over the years, thus disqualifying themselves from given hope. 

The time when politicians could win over people with a few hollow slogans and empty promises is over. Messages of hope and optimism now have to be backed by a plausible action plan, because people have had enough of big words and lies.

THE ISLAND’S first ever Olympic winner Pavlos Kontides said yesterday words could not describe how he felt after making history for Cyprus by winning the silver medal in the men’s laser class final at Weymouth.

“I feel incredible, wonderful. I am so proud of all the Cypriot people and my family,” said Kontides, 22, who flung his arms in the air and whooped with delight when presented with his medal as a group of Cypriot spectators jumped up and down waving the flag.

“I never gave up, I believed in the medal and I want to thank my family and the team,” were his first words after the race, which was won by Australian Tom Slingsby..

“I have worked very hard and stopped my studies to be here today. Nothing could discourage me, not even all the injuries. I was confident that I could do it,” said Kontides who had suffered 

a number of injuries including back problems and a broken hand after which he had to train with a cast.

Kontides, from Limassol, who is a graduate of the Grammar School, and was studying ship science at the University of Southampton, currently ranks 11th in the world but has held 6th and 8th positions in the past. In an effort to be fully prepared for the Olympics, he also took a break from his studies for the past two years.

Speaking to state broadcaster CyBC, his aunt Evi Kontidou said last night her nephew had made many sacrifices on the road to Olympic fame. 

“I know about the sacrifices he’s made over the years... and was concerned only with training,” she said. “I have a photo of him when he was a child (sailing). He said to me now though ‘grandad you’re going put a new photo of me here’,’” his grandfather told reporters.

The Cyprus Olympic Committee said Kontides’ win marked a new start for Cypriot athleticism.  “Pavlos Kontides’ success sends the message that all high performance athletes have the potential not only to set high goals but to achieve them,” it said.

Kontides former coach, Yiannakis Papazoglou described how proud he was.

“He’s like my son I feel moved,” said Papazoglou, who is also the coach at the Limassol Nautical Club.

“Every time I watch the news my eyes well up, said Papazoglou. He said what Kontides had achieved was no mean feat given that “laser is the hardest category and the most competitive.”

Papazoglou said he first met Kontides when he was six years old, and even then he felt he had an Olympics contender on his hands when he spotted the look of enthusiasm.

“I saw him when he was six years old when he came with his father (to the Limassol Nautical Club) with his older brother,” said Papazoglou. “I said he was very young but we might be able to make an Olympic winner out of him, added Papazoglou, laughing at the idea that his prediction came to pass.

Kontides’ father Dr Panayiotis Kontides was also a sailor when he was younger, but never competed outside Cyprus.

According to Papazoglou, the young Kontides started when he was about 8 years old on an Optimist – one of the most popular sailing dinghies in the world - which is a small, single-handed sailing dinghy used by children up to the age of 15. 

“He was a big-built child so within a few years he’d moved up to the laser and it was a lot harder as he had to compete with teens up to the age of 18,” said Papazoglou.

But he said Kontides was always very dedicated.

Asked about reports suggesting Kontides had not been financially supported by the  Cyprus Sports Federation (KOA), Papazoglou said that the organisation has supported him  but did not do enough.

“Unfortunately most of the money goes to football…if it wasn’t for his parents who are both doctors we wouldn’t have Pavlos Kontides...,” said Papazoglou.

In a recent interview with an online magazine, Kontides had said that the bulk of his financial support came from his family. Papazoglou said that in the run up to the games Kontides’ father had rented him a house in Weymouth so he could train although the team was not allowed to train in the actual waters where they would be competing.

“The English did not let any of the athletes actually train in the waters that they would later race in, they trained in the vicinity,” said Papazoglou.

Over the past two years in preparation for the Olympics and the World Championships, Kontides was dividing his time between Croatia, Cyprus, Perth in Australia and Weymouth in England. He has also been working with Croatian coach Jozo Jakelic since 2008.

Kontides’ first win came in 2003, aged 13, at the Laser Youth National Championship.

However, by age 15 he ranked 541 in world rankings for laser. Three years later he ranked 96. By 2009 he ranked 8th and by June 2011 he ranked 6th.

His biggest distinctions to date: 1st place at the 2007 World Championship-Kingston, 1st place at the 2008 Youth World Championship-Aarhus and 5th place at 2011 World Senior Championship-Hayling Island.

He also took part in the 2008 Beijing Olympics coming in 13th place and as the youngest competitor.

The Cyprus sailing team will arrive back on the island on Thursday and will be welcomed at the Presidential Palace on Friday and then at Parliament.