A 2011 land deal, where the pension fund of telecoms authority (CyTA) purchased a plot in Larnaca for some €20 million, was “a stitch-up from beginning to end,” interior minister Socrates Hasikos told an investigating panel yesterday.
Hasikos was the first witness summoned before the committee, which was sworn in on Wednesday following a Cabinet decision.
The land, in Dromolaxia, Larnaca, was sold to a Greek Cypriot businessman, and after the coefficients were upgraded, it was acquired by the CyTA pension fund for around €22 million.
The land deal took place under the previous administration’s watch.
The land in question belonged to a Turkish Cypriot. According to Hasikos, it was initially purchased by a Greek Cypriot who filed for a land-use change. As a consequence of the change (the land was now to be used as office space), the building coefficients were raised, which also upped the land’s value. CyTA then bought the plot at the higher price.
According to Hasikos, the Cabinet – which green-lighted the sale to CyTA – was aware that the coefficients had been upgraded when it was approving the transaction.
“CyTA’s pension fund was looted… It makes you wonder why it should invest in offices or buy buildings next to the Hilton hotel in Nicosia, or buy property at twice the market value…” the minister told the panel.
On the Larnaca plot, Hasikos said CyTA chose it despite being aware of other cheaper options which also came with all the necessary permits.
The semi-state telecoms company denies any wrongdoing.