TOP DIPLOMAT at the Presidential Palace Marios Ieronymides yesterday denied allegations of a conflict of interest in his relationship with the Chinese investor interested in turning the old Larnaca airport into a commercial centre.
Ieronymides rejected claims that he personally benefited from his “friendship” with Yang Qi, sole shareholder of Far Eastern Phoenix (FEP), the Cyprus-registered company that signed a deal with Hermes Airports on March 22, 2012 for a 19-year lease of the old airport.
On the contrary, Ieronymides argued that he only had the country’s best interests at heart in all his dealings with Chinese businessmen. He pointed out that when serving as Cypriot ambassador to China- the post he held prior to his appointment as Director of the President’s Diplomatic Office- he encouraged many Chinese investors and property buyers to come to Cyprus.
The Cypriot diplomat came under the spotlight on Wednesday after daily Politis reported that he was present at the signing of the agreement between Hermes and FEP. The paper also reported that his wife, Tatiana Ieronymides, was a co-director of FEP from its establishment in April 2009 until March 17, 2012, resigning six days before FEP signed the 19-year lease agreement with Hermes.
Since then, the Chinese investor has been in negotiations with the government to extend that deal for a further 31 years.
Hermes Airports released a statement after the article’s publication stating that Ieronymides made it clear during the signing that he was present as a friend of Yang Qi, not as a representative of the state.
Speaking to the state broadcaster yesterday, Ieronymides said as ambassador in Beijing he undertook huge efforts to encourage Chinese investment in Cyprus.
He only found himself at the signing of the agreement because he was the one taking Yang Qi to the airport to catch a flight, the morning after the long night of negotiations which sealed the deal.
“I took him to airport, you can ask (Hermes Chairman) Mr (Nicolas) Shacolas, they didn’t let me leave, they insisted I stay for the signing so I highlighted I can stay as a friend but I represent no one,” said the diplomat.
Ieronymides acknowledged that in hindsight, his presence there may have been wrong. “But I judged that they were two private companies, and made it clear that I don’t represent anyone.”
The ambassador said President Demetris Christofias was not informed about his or his wife’s role in the matter, adding that he was preparing a memo to give to the president’s office.
He said his conscience was clear but that if necessary, he would hand in his resignation.
He further disclosed that he accompanied Yang Qi at a second meeting, this time with Communications Minister Efthymios Flourentzos to discuss the investor’s desire to extend the Hermes agreement.
“I took Mr Yang Qi to the minister, because he knew no one in Cyprus. I took him to meet the minister,” he said, noting that he exerted “great effort” to convince Yang Qi to invest in Cyprus.
Regarding his wife’s involvement in FEP, he said the company was set up in 2009 to invest in the Balkans, an idea which never materialised. His wife is of Serbian origin.
“Mr Yang Qi decided to use this company for the airport project, and for ethical purposes my wife resigned and left the company six days before a private agreement between Hermes and Mr Yang’s company. Where is the flaw in that?”asked Ieronymides.
He added: “My wife is director of a Serbian company and is on the board of another ten companies.”
The top diplomat questioned why no one mentions the fact that Yang Qi is the Cyprus Investment Promotion Agency representative in Beijing or that he is also Cyprus’ honorary consul in Macau.
Ieronymides stressed that he “dedicated so much time” to securing Chinese investment in Cyprus, adding: “I don’t want anyone to say thank you or anything, but from Beijing I did my duty... the 150 residential property purchases (by Chinese buyers) in the last month in Cyprus, do you think that is by chance?”
Flourentzos yesterday backed Ieronymides’ claim that he had no involvement in negotiations on the airport project. Once the Chinese investor requested a 31-year extension to the lease, the ministerial committee got to work on the proposal.
“He had no institutional or any other kind of involvement, and neither could he,” said the minister.
Flouretzos acknowledged that the government only found out in May that the majority of FEP’s shares (50.1 per cent) also belonged to Yang Qi. Before that, they were only aware that he owned the other 49.9 per cent.
As for Ieronymides’ wife’s position as former director of FEP, the government discovered this fact last week, he said. Christofias was informed last Friday.
Asked if the president was surprised, the minister replied: “He certainly wasn’t happy.”
Parties across the political spectrum called for an investigation to provide full transparency and clarification of what exactly went on.
DISY spokesman Haris Georgiades took it a step further, calling for Ieronymides’ suspension so that an investigation could take place.
Regarding the 150 sales of immoveable property, Georgiades said immigration officials have complained to him about the diplomat, claiming Ieronymides put heavy pressure on them to issue permanent residence status to Chinese buyers.
Ieronymides responded to the allegation: “There is a cabinet decision from 2009, which provides that any foreigner who buys a residence above €300,000 in value, has the right to get permanent residence.”
He argued there was no way he could pressure immigration officials since a special committee headed by the interior ministry’s permanent secretary was responsible for giving such status.
REPRESENTATIVE for FEP, Savvas Poyiadjis, yesterday issued a statement expressing the company’s “disappointment with the way its desire to invest in Cyprus has been handled, and particularly the huge delay and the many obstacles over a simple act of leasing” the old airport.
“If for the Cypriot state, there are difficulties or insurmountable procedural problems for leasing the space of the airport, the company is ready to discuss purchasing private land, abandoning the idea of the old airport, provided that there won’t be other obstacles and that prompt procedures will be agreed allowing the implementation of the project within a reasonable time frame,” he said.
Poyiadjis rejected any notion that the company received favourable treatment, arguing that, on the contrary, it has been subjected to “excessive checks”, casting doubt over whether Cyprus even wanted the investment to go ahead.
He said the project is supported by the Chinese government, adding that the company is ready to provide full disclosure of its intentions in Cyprus, noting that “it has nothing to hide”.