Cyprus Mail: News Articles in English, 98-12-24

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From: The Cyprus Mail at <http://www.cynews.com/>

Thursday, December 24, 1998

CONTENTS

[01] 'Positive' resolutions meet conditions for missile cancellation

[02] Denktash rejects UN call for Cyprus talks

[03] Church investigators back Paphos bishop's claims

[04] Inkombank in Cyprus goes to liquidators

[05] Christodoulou turns down private job

[06] Pourgourides stands firm on corruption allegations

[07] Xiourouppas identifies police suspect as man who shot him

[08] Police arrest two after 5 kilo cannabis haul

[09] Businessmen propose bi-communal water projects

[10] Whirlwind rips through Limassol

[11] Missing committees reunite

[12] Animals scoop Parliament lottery

[13] Three Britons killed in storm crash

[14] E-mails lost in cyberspace

[15] Christofias hospitalised with pneumonia

[01] 'Positive' resolutions meet conditions for missile cancellation

THE GOVERNMENT believes the pre-conditions it has set for non-deployment of the Russian S-300 missiles are now being met. Foreign Minister Yiannakis Cassoulides yesterday said that following Tuesday's two "positive" UN resolutions on Cyprus and US President Bill Clinton's pledge actively to support these, the National Council would be convening for an extraordinary meeting today to "discuss and decide on" the S-300 issue.

"I will say nothing on the S-300s except to say that various factors are now coming together and will be put before the National Council for the appropriate appraisal," Cassoulides told a midday press conference.

"The two resolutions are considered positive, because we believe they create hope of the prospect for efforts to open the road on the essence of the Cyprus problem, but especially to open the road for the reduction in all armaments with the aim of demilitarisation," Cassoulides said.

The government has set significant progress towards a settlement or a demilitarisation deal as pre-conditions for cancelling the £200 million deal to buy ground-to-air missiles from Russia.

Turkey has threatened military action to stop deployment of the S-300s, while the US and EU have made it plain they don't want the missiles to arrive, fearing they would dangerously escalate tensions on the island. The National Council has already postponed delivery of the missiles, originally due in August.

The minister said the government was not being naively optimistic, but would grab the opportunity created by the new resolutions and Clinton's fresh promise.

"We know the Turkish side well, but we have an obligation, whenever a chance is created, to take it and move positively and constructively with hope."

The Security Council adopted two Cyprus resolutions late on Tuesday, unanimously and without debate.

The first resolution (1217) urged both sides to commit themselves to settlement negotiations. It also renewed Unficyp's mandate in Cyprus for a further six months, expressing grave concern at "the continuing excessive levels of military forces and armaments" on the island.

The second (1218), considered more significant by Cassoulides, called on UN Secretary-general Kofi Annan to intensify his efforts to achieve specific objectives to reduce tensions and promote a settlement.

"Also, for the first time for many years, resolution 1218 calls on the two sides to comply with the resolution's aims," Cassoulides commented.

He said what the government had wanted from the Security Council was some demonstration of "sensitivity" towards Greek Cypriots' security worries. "What we have before us is a new resolution which, added to others in the past, is positive."

In a White House statement later on Tuesday, Clinton said he was committed to ending the "tragic division of Cyprus".

"We will take all necessary steps to support a sustained effort to implement UN resolution 1218."

"I believe 1999 can offer significant opportunities to achieve progress towards a Cyprus settlement that will meet the concerns of all the parties involved," the US President said.

"The statement from the US President represents a pledge to work for the solution of the Cyprus problem, it creates new hopes for 1999," Cassoulides responded.

The US promised "big pushes" on Cyprus for both 1997 and 1998.

"We have heard such pledges before, but if there is something new for us it is the pledge that the US government will work to support continuous efforts for implementation of resolution 1218," Cassoulides said.

The government believes the US had the clout to influence Turkey to change its stance on Cyprus. "The US can bring pressure to bear on Turkey," the minister said.

He added that a statement was also expected from British Prime minister Tony Blair.

The Blair statement duly materialised later in the day, and was a virtual carbon copy of Clinton's.

"Britain is committed to working for full implementation of this resolution, " Blair said in a written statement issued by Downing Street.

Blair made a thinly veiled reference to the S-300s: "It is particularly important that all parties avoid any action which might increase tension on the island, including through the expansion of military forces and armaments."

Cassoulides said another reason for optimism was that the shuttle talks conducted over the past two months by Annan's permanent representative to Cyprus, Dame Anne Hercus, were getting somewhere - though he did not elaborate.

On Sunday, Hercus said she was encouraged by the "progressive" attitude that President Clerides and Turkish Cypriot leader Rauf Denktash were showing during these proximity talks.

Austrian Foreign Minister Wolfgang Schussel yesterday issued a statement welcoming the UN resolutions and "fully supporting" Hercus's shuttle talk efforts. Austria currently holds the EU presidency.

The Greek government welcomed the UN resolutions as "evidence of the international community's strong interest in Cyprus."

Earlier this month, Clerides met Greek Prime Minister Costas Simitis in Athens to discuss the S-300s. Despite official statements to the contrary, government sources revealed that the two leaders had disagreed on the issue, with Clerides insisting the missiles come to Cyprus and Simitis favouring the compromise solution of storing the S-300s in Crete.

Cassoulides said yesterday that the results of this Athens meeting were among the "various factors" the National Council would consider today.

Cyprus' ambassador to Athens is understood to be meeting with Greek government officials to discuss the issue early this morning.

Last week, the Foreign Minister said "crucial" Cyprus problem developments lay ahead and, if necessary, the National Council would meet "on Christmas Day" to discuss them.

National Council and cabinet members did not share Cassoulides's optimistic appraisal of developments.

Defence Minister Yiannakis Omirou said the resolutions did not change the situation concerning the S-300s. "Nothing has changed concerning the missiles," he commented.

Vassos Lyssarides, the leader of Omirou's party Edek, agreed.

"My opinion is that the resolutions do not change the situation or make it necessary to modify the decision to deploy the S-300s," Lyssarides said.

"No practical measures or time frames are provides for" by the resolutions, he added.

Socialist Edek has threatened to abandon the government if the missile deal is cancelled.

Spyros Kyprianou, leader of opposition party Diko and House president, said the UN resolutions and Clinton's promises aimed solely at securing cancellation of the missile order.

He said a "more cautious" appraisal of the resolutions was called for.

Thursday, December 24, 1998

[02] Denktash rejects UN call for Cyprus talks

Denktash insisted on the recognition of his self-declared Turkish Cypriot 'state' as a condition for returning to the negotiating table with the internationally recognised Cyprus government, it said.

"After telling one side that it is the legitimate government, how can one expect compromise from that side," Anatolia quoted Denktash as saying.

"The only choice left for us is to resist and never to bow."

The UN Security Council passed two resolutions on Tuesday urging the leaders of the two communities to restart negotiations, stalled for the past year.

Ankara yesterday expressed support for Denktash.

"Accepting the existence of two separate sovereign and equal states on the island emerges as a necessity to make any improvement in the Cyprus question," the Turkish Foreign Ministry said in a statement.

Greece has welcomed the UN resolutions.

US President Bill Clinton and British Prime Minister Tony Blair have also called for sustained efforts to broker a peace settlement on the island.

Ann Hercus, the UN special representative for Cyprus, has been shuttling between the two sides since mid-October with proposals to prevent clashes and foster co-operation.

Thursday, December 24, 1998

[03] Church investigators back Paphos bishop's claims

A TWO-MAN Church investigation team yesterday backed the Bishop of Paphos's claims against a Greek monk he said molested and infected seven nuns in Cyprus 17 years ago.

The investigators, appointed by the Holy Synod on Monday, took only two days to reach their decision, which will now be passed on to the Holy Synod.

The decision raises the possibility of a renewed legal battle between the Cyprus Church and the Greek Monastery of Vatopedhi on Mount Athos, where the accused Elder Iosif is a monk. Vatopedhi last week hired top local lawyers to sue the Bishop of Paphos, only suspending its action when Archbishop Chrysostomos dismissed the allegations.

Bishop Chrysostomos accused Iosif of molesting and infecting seven Paphos nuns when he was in Cyprus 17 years ago.

Last night the defiant Bishop said that, although he had been vindicated, he was "not pleased".

"I would be happier if the findings were different, because many people, especially young people will be unbelievably hurt," he said.

The Bishop said because Elder Iosif was a monk, not an ordained priest, he could not be defrocked.

The Holy Synod said on Monday there was scope for investigation against Iosif.

However, it threw out the Bishop's allegations of immorality against Limassol Bishopric candidate Abbot Athanasios of Machairas for his alleged association with Iosif, saying the witness making the allegations was unreliable.

Bishop Chrysostomos has consistently denied that his allegations against Athanasios have anything to do with his opposition to the Abbot's candidacy for Bishop of Limassol, the elections for which will take place in the New Year.

Asked yesterday if he believed the investigators' findings would alter the Synod's stance on Athanasios, Bishop Chrysostomos said: "I don't know. That's what I said yesterday (Tuesday). Everybody should take on his own responsibilities."

On Tuesday, the Bishop hit the ball back into the court of the Holy Synod by saying the discredited witness had not been his source in the case against Iosif and that his witnesses were reliable. "The findings have vindicated me," he said yesterday.

An announcement from the Archbishopric last Thursday blamed a defrocked Greek nun for the allegations against Iosif, stating she had "deceived" the Paphos Bishop into making the claims.

The statement was issued after Archbishop Chrysostomos had separate meetings with his namesake from Paphos and archimandrite Efrem, abbot of Vatopedhi.

The day before, the Paphos Bishop had offered an apology for the shocking detail of his allegations against Iosif, but continued to insist his claims were true.

Thursday, December 24, 1998

[04] Inkombank in Cyprus goes to liquidators

THE CENTRAL Bank of Cyprus has revoked the licence of Inkombank and obtained a court order to liquidate its international banking unit in Limassol after the Russian financial institution failed to meet its obligations.

A Central Bank statement said the decision to revoke the licence, granted in July 1993, was made last November 18 and followed a similar action against Inkombank by the Central Bank of the Russian Federation in late October.

"The bank has not been able to meet its obligations and liabilities," said Andreas Philippou, the Central Bank's chief senior manager, banking supervision and regulation division.

Speaking to the Cyprus Mail, Philippou declined to specify the size of these liabilities. "They are not a great number of millions (of dollars)," he said.

Yesterday's disclosure came more than three months after the Central Bank sent instructions to Inkombank in Cyprus not to accept any new deposits. Central Bank officials at the time said the move conformed with measures taken by the Russian Central Bank against Inkombank and did not reflect how it viewed the operations of the bank on the island. The Inkombank branch in Cyprus, they pointed out then, followed the fortunes of the whole bank and did not have a solvency of its own.

Yesterday's statement said that Nicosia District Court on December 9 appointed three provisional liquidators to handle Inkombank. These are Dinos Papadopoulos, George Foradaris and Tassos Televantides of Chartered Accountants giant PricewaterhouseCoopers.

Inkombank was one of five Russian banks operating on the island, which include one that is fully owned by the Russian Central Bank. It was heavily involved in retail banking before Russia's financial crisis hit last August. Earlier this year, it significantly raised its profile on the island by launching an advertising campaign in the local media to promote its high interest rates on fixed-time, dollar-denominated deposits.

Philippou, speaking to the Cyprus Mail yesterday, said that operations of the four other Russian banks on the island were proceeding normally.

The demise of Inkombank in Cyprus is a by-product of the crisis in Russia, which has seen the former communist country default on loan repayments, the national currency rapidly devalued and equities plunging.

Cyprus has been a favourite with many Russian businessmen since the collapse of the Soviet Union at the outset of the 1990s. The number of Russian offshore banks registered on the island is estimated at 5,000 out of a total of nearly 35,000. Before the crisis broke out, the island was also a hit with Russia's new middle class holidaymakers. Limassol, a favourite destination to the tens of thousands of Russians who visited the island this year. The city also boasts Russian restaurants, and tourist facilities there have in recent years employed more and more Russian speakers in frontline jobs. Billboards taken by construction companies and developers on the Limassol to Paphos road advertise property in Russian as well as Greek, underlining the purchasing powers of Russians on the island.

Thursday, December 24, 1998

[05] Christodoulou turns down private job

The minister issued a statement saying that his decision followed "due consideration". His decision had already been relayed to the association, the statement said.

Government officials said earlier this week that Christodoulou would remain in office until the House ratified the 1999 budget, suggesting that a move from the powerful finance ministry might be on the cards for Christodoulou.

But yesterday's statement did not say what Christodoulou's plans were following his decision to turn down the lucrative job offer and the thinly- veiled hints that he would not be staying at the helm of the Finance Ministry beyond January.

Informed sources have said that President Glafcos Clerides wanted Christodoulou to take another Cabinet post in a reshuffle widely expected to take place early next year, but that the 59-year-old career civil servant turned down the offer, choosing to be left out of the government altogether rather than be given a lesser ministerial brief.

Christodoulou, an influential member of Disy and a close confidant of Clerides, has held the finance brief since November 1994.

Thursday, December 24, 1998

[06] Pourgourides stands firm on corruption allegations

DISY DEPUTY Christos Pourgourides said yesterday it had never been his intention to see Dinos Michaelides prosecuted on criminal charges and that his accusations against the Interior Minister had been levelled on ethical grounds.

Michaelides was cleared of any possible criminal responsibility by Attorney- general Alecos Markides on Monday.

But Pourgourides insists the Minister's hands are not clean and that the investigation had not cleared him of wrongdoing.

"I don't care about the criminal responsibility," Pourgourides said. "I'm saying that criminal charges were never in my mind."

He said that, according to the results of the Attorney-general's report, the evidence provided could not prove that a criminal case in court.

"This does not mean the man is innocent," Pourgourides said. "On the contrary, what it means is that from the investigation it was not made possible to take the case to go to court."

Pourgourides said it was wrong for a government minister to buy an apartment for half its worth or to buy property from private individuals with whom his ministry worked on a regular basis without there being a political cost.

Pourgourides was referring to some of the charges he initially brought against Michaelides four months ago.

His claims led to the Minister being investigated on 14 charges, later reduced to two after a preliminary investigation by the Auditor-general.

But although legally in the clear, Michaelides may still have to answer questions relating to at least five immigration cases.

There is also a chance he could be investigated for tax evasion and allegations relating to land deals.

Pourgourides also laid some of the blame on the Attorney-general for allowing Michaelides to stay in his post while the investigation was going on.

But Markides yesterday washed his hands of the case, saying he had no involvement in whether Michaelides should pay a political price for his actions.

"The criteria is totally different for criminal responsibility and for political, and again the criteria of legal responsibility in both instances are different," Markides said yesterday.

Disy leader Anastassiades has said Pourgourides owes Michaelides a public apology if all of the claims are eventually proved groundless.

Yesterday Pourgourides said Anastassiades was dragging the party back into the Middle Ages.

Thursday, December 24, 1998

[07] Xiourouppas identifies police suspect as man who shot him

Special Constable Savvas Ioannou, alias Kinezos, was identified by Andreas Xiourouppas an identity parade at Nicosia's Lykavitos police station.

The information was given to the press by Ioannou's lawyer, Neophytos Papamilitiades.

Xiourouppas himself refused to comment.

Aradippou councillor Xiourouppas was seriously injured after being shot outside his home in mid-October this year.

Ioannou is one of five suspects arrested in connection with the murder of Aeroporos last week.

Christos Symianos, 35, also a police officer, nightclub owner Sotiris Athinis and his sister Zoe Alexandrou, a hospital cleaner, are also being held in connection with the murder.

Police say ballistic tests show the automatic weapon used to kill Hambis Aeroporos also killed his brother Andros earlier this year.

Thursday, December 24, 1998

[08] Police arrest two after 5 kilo cannabis haul

Two Limassol men were remanded for eight days by the Larnaca court yesterday in connection with the case.

Andreas Nicolaou, 23, and Pantelis Ioannou, 25, were arrested early yesterday after police discovered five kilos of cannabis in what they say was a bag belonging to Nicolaou.

According to police, the two men arrived on a flight from Athens on Tuesday morning. Nicolaou then allegedly decided to leave his bag at the baggage retrieval area at the airport, fearing a search by customs.

Both he and Ioannou were indeed searched on their way through customs, but nothing was found.

The bag was discovered overnight by drug squad officers acting on a tip off. Yesterday morning, Nicolaou returned to the airport to try and catch a flight to Athens, but he was detained for questioning by police, who opened the bag containing the drugs in front of him.

Police said the bag also contained personal items belonging to Nicolaou and he was arrested. Ioannou was arrested a short while later.

Thursday, December 24, 1998

[09] Businessmen propose bi-communal water projects

TWO PROPOSALS were yesterday put to the government to help alleviate the drought on both sides of the island.

The proposals were given to Agriculture Minister Costas Themistocleous by Greek Cypriot representatives of the bi-communal business group that met in Istanbul last week.

The group, brainchild of UN presidential envoy Richard Holbrooke, includes businessmen from both communities on the island and their Greek and Turkish counterparts.

After yesterday's meeting, Greek Cypriot representative Phanos Epiphaniou said the proposals centred on utilising existing resources which could benefit both sides.

One proposal is to build a damn on the Karkotis river which begins in Troodos and flows through the occupied Morphou district, running unused into the sea.

The second proposal is to recycle Nicosia drain water, which is currently directed to the river bed. With a cash investment, this water could be further purified for consumer use.

"On the table are two very specific ideas... for the benefit of both communities," the Minister said.

Epiphaniou said the joint projects would be non-profit making.

"It wasn't a business issue and at these meetings as you know, we don't worry about business but rather things to benefit both communities and find ways of co-operation between us starting from projects for both communities, " Epiphaniou said.

He said such projects helped people on both sides to get to know each other and to be ready for the time when a political solution is reached.

In Istanbul last week, the Greek and Turkish Cypriot businessmen agreed on several ways to push forward co-operation, in addition to tackling the water shortage - a pet project of the Americans, which the Cypriot businessmen did not initially wish to be involved in.

The businessmen have also agreed to also launch projects to have their languages taught in each others schools, to establish an

agreement to have cellular phones work on both sides, and to make efforts to restore historic monuments.

The group's activities have been severely hampered by the ban on bicommunal activities imposed by the Turkish Cypriot regime, itself suffering severe water shortages despite moves to import water from Turkey.

Cyprus has also contemplated bringing water from Greece, but the Minister said yesterday that the idea had not gained ground because of the expense involved to the consumer.

"So far, it's expensive and has been rejected," the Minister said.

"The tenders have shown that this solution is expensive so at this time, as a solution, it is rejected."

Thursday, December 24, 1998

[10] Whirlwind rips through Limassol

The freak whirlwind hit the town at around 4.30am, sending billboards crashing, overturning shipping containers and demolishing several shacks and sheds along the coast. Two cars were wrecked when trees were blown down on top of them, roofs were torn off garages and greenhouses and solar panels were destroyed. Electricity pylons were sent crashing, interrupting the supply, and in one area the water supply was also interrupted.

The wind came ashore at Zakaki, moving through Polemidia, Ayios Athanasios and Yermasogia. Zakaki Community Leader Andreas Demetriades said that although the cost hadn't been calculated yet, the damage was considerable. Members of the fire brigade, the public and municipality workers were trying to restore order.

Fortunately, there were no serious injuries.

The weather in Limassol was still cloudy and overcast yesterday afternoon, and strong winds were still blowing.

In Larnaca, overnight storms also caused a blackout, while there was mist and hail in Troodos and Platres.

Thursday, December 24, 1998

[11] Missing committees reunite

The decision was announced by Agapios Hyratos, president of the National Struggle Committee for the Missing, after a meeting yesterday under the chairmanship of the head of the House Refugee Committee, Aristophanes Georgiou.

Georgiou has been acting as a go-between to bring the estranged committees together under one umbrella. The other committee is the Committee for the Relatives of Missing Persons, which is headed by Nicos Theodosiou.

Hyratos said the elections to vote for the new representatives would be held next year.

The move was welcomed by Humanitarian Affairs Commissioner Takis Christopoulos yesterday. He told the Cyprus Mail that efforts had been going on for years to achieve this.

The original committee for the relatives of the 1,619 people officially listed as missing, split up acrimoniously over five years ago.

"I believe there were some personality clashes," Christopoulos said.

Until recently the 'Struggle' committee was headed by an outspoken priest, Father Christoforos, who was forced to resign after stories of alleged sightings of the missing, which he publicised, turned out to be unfounded.

The missing issue is at a complete standstill and the Greek Cypriot side is awaiting some action from Jean-Pierre Ritter, the UN representative to the investigative Committee for Missing Persons (CMP). Ritter has been accused of doing nothing since his appointment by the UN Secretary-general earlier this year.

Thursday, December 24, 1998

[12] Animals scoop Parliament lottery

The raffle was held at the House's end-of-year party, and several barking government officials decided to put their pets' names down for tickets, instead of their own.

The result was that Tsipis, a cat owned by the Director-general of the House, Costakis Christoforou, won a round trip to Amsterdam, courtesy of KLM. Also clawing her way onto the winners' list was Meggy, a female cat owned by official Tassoula Ieronimidou. Assuming the establishment doesn't bar guests with more than two legs, Meggy gets to spend a luxury weekend break at the Kissos Beach Hotel.

Feline less lucky was hound Rocky, the property of another official, Tassos Georgiou. Rocky won £30 worth of super-economy light bulbs, which should last a lifetime in your average one-room kennel.

Several humans also won prizes in the draw, including Diko Deputy Marcos Kyprianou, who went home with a new food mixer.

Thursday, December 24, 1998

[13] Three Britons killed in storm crash

According to a police report, passengers Stella Mildred Walter, 51, Frank Jones, 53, and Judith Diana Jones, 50, were killed instantly.

The driver of the vehicle, Troy Edward Carl Vell, Walter's son, is in a serious condition. He is currently being treated in Limassol Hospital's intensive care department.

Television pictures showed the car smashed into an excavator after apparently bouncing off a tree.

Limassol traffic department yesterday blamed speed for the accident, saying the stormy weather had not caused the crash.

All four were permanently resident in Limassol's Ayios Tychonas.

Thursday, December 24, 1998

[14] E-mails lost in cyberspace

And overnight incoming e-mails had disappeared for good, Cytanet said yesterday.

A technician on the Cytanet hotline told the Cyprus Mail that the problem was serious, and had never happened before.

The problem been solved, he said, but the lost mail was gone for good.

There had been a server loss to users' mail boxes, the technician explained, resulting in message chaos.

Subscribers can reach the free hotline at 08-008080.

Thursday, December 24, 1998

[15] Christofias hospitalised with pneumonia

Akel said yesterday Christofias' condition was improving, but could not say when he would be released from hospital.

Christofias had just returned from London when he was admitted to hospital.

© Copyright Cyprus Mail 1998

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