Cyprus Mail: News Articles in English, 01-04-26

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From: The Cyprus Mail at <http://www.cyprus-mail.com/>

Thursday, April 26, 2001

CONTENTS

[01] Massive poll boost for AKEL

[02] Petrol bomb tossed into school staff room

[03] Turks ask UN to step up security ahead of Tsiakourmas verdict

[04] EC optimistic over economy, but warns of dependence on tourism

[05] News in Brief

[06] Tax reform could net more cash from evaders

[07] Opposition rounds on government for desalination glitch

[08] Cyprus says it co-operated fully with UN over Angolan arms investigation

[09] Co-op offences were disciplinary, not criminal

[10] Politics spill over into CY board meetings

[11] Limassol facing meningitis outbreak this summer

[12] MOT test centre opens in Nicosia

[13] Pourgourides and Michaelides lock horns

[01] Massive poll boost for AKEL

The poll, carried out between March 20 and April 12 and published in the paper yesterday, suggested AKEL would win 36.6 per cent of the vote come May 27, with governing DISY trailing with a disappointing 30.5 per cent.

In the last parliamentary elections, in 1996, DISY secured 34.5 per cent of the vote and AKEL 33 per cent.

The poll suggests DIKO will maintain its 10 parliamentary seats, earning16.4 per cent of the vote as it did in the last elections.

But the survey makes disappointing reading for Socialist party KISOS, suggesting it will only win 6.1 per cent of the vote compared to 8.1 per cent in 1996.

The United Democrats will also lose, according to the poll, which suggests the party will just scrape into Parliament, with a mere 1.8 per cent of the vote, just enough to secure one seat, compared to 3.7 per cent in the last elections.

The poll suggests that two parties will make their debut in Parliament after the next elections, raising the number of parliamentary parties from five to seven.

Right-wing New Horizons party, who did not run in 1996, will make a triumphant entry into Parliament, securing 4.7 per cent of the vote and at least three Parliamentary seats, according to the survey.

The Green Party, which won only one per cent of the vote in 1996, is expected to get 2.6 per cent this time.

The poll suggested that ADIK would not make it into Parliament, as it would only secure 1.1 per cent of the vote. Parties need 1.8 per cent of the vote to make it into parliament.

AMER found that 10.4 per cent of voters were still undecided.

The fact that the four small parties are expected to secure a 10 per cent of the vote in total indicates that a significant percentage of voters are dissatisfied with the political establishment.

AMER questioned 1,001 people from across the country.

All the opinion polls conducted in the last two months have suggested that AKEL would be the big winner in the election on May 27.

AKEL's victory would signals a change of guard in politics, with the left- wingers seen likely to win the Presidential elections in two years if they form a coalition with either DIKO or KISOS, ending 10 years of DISY rule.

But DIKO is expected to be the party pulling the strings after the Parliamentary elections. The centre party will most probably form a coalition with one of the big parties, AKEL or DISY and possibly with KISOS in the Presidential elections.

Commenting on the poll's results, AKEL leader Demetris Christofias said that: "People are showing their appreciation for our pro-people stance."

DISY spokesman Tassos Mitsopoulos appeared optimistic that his party would secure a higher percentage of the vote than AMER's survey suggested, saying voters had a tendency to take last-minute decisions.

"It is usual for a ruling party to suffer some losses," he said.

Kyriacos Mavronicolas of KISOS said the Social Democrats had been receiving positive messages from the people, which contradicted the poll's results.

"Anyhow, we will fight to prove those results wrong, convincing people that we are the ones they should support. It is a fight we will win," Mavronicolas pledged.

Voting is compulsory in Cyprus. About 400,500 people are expected to vote to fill 56 Parliamentary seats in May.

Copyright Cyprus Mail 2001

[02] Petrol bomb tossed into school staff room

The firebomb attack came just two days after a Molotov cocktail exploded on the front wall of the Limassol home of two secondary school teachers.

Though police said they could not be sure yesterday's arson attack was down to students, the incident fuelled concerns about growing teenage delinquency.

"This attack is something that must trouble us all," Limassol police chief Charalambos Koulendis said of the petrol bomb assault on the school staff room. The fire started by the Molotov cocktail destroyed two armchairs and damaged the walls of the room before the fire brigade could put it out.

Reports of teenage delinquency have been on the up in recent months, prompting teachers and parents to demand greater security at schools.

Earlier this month, teenagers scuffled with police in the Ayios Kassianos area of Nicosia after officers tried to stop them building an Easter bonfire in the area. In Limassol last month, two students aged 17 and 14 were arrested after a pipe bomb exploded in the lavatories of a secondary school in the town. A few days before that, three 18-year-olds were arrested for attacking police during a brawl between students from Limassol and Paphos schools in the Pissouri area.

Copyright Cyprus Mail 2001

[03] Turks ask UN to step up security ahead of Tsiakourmas verdict

Turkish Cypriot papers reported yesterday that the "Foreign and Defence Ministry" had warned UNFICYP that they expected Greek Cypriot protests after the 'court' in the north issues its verdict today.

Panicos Tsiakourmas was abducted from British bases territory and forcibly taken to the north on December 13, accused of possessing two kilos of cannabis. The verdict will be announced today.

"It is known that during the past months the Greek Cypriot provocations in the buffer zone and especially in Pyla village have deliberately escalated, " a statement from the `Ministry' said. "On this matter, our ministry has informed the UN peace force both orally and in writing in the past as well. We are warning them to take into consideration the provocations that could occur after the court's decision."

Meanwhile, doctors said yesterday that the condition of Tsiakourmas` mother Eleni had not improved.

She was admitted to hospital a week ago, after suffering a stroke doctors say was brought on by her son's detention.

Turkish Cypriot leader Rauf Denktash said on Monday he would allow Tsiakourmas to visit his mother if he was convicted.

'She is still critically ill," a doctor at Larnaca hospital said yesterday. "If her son is to see her alive they have to let him come as soon as possible."

The doctor said Tsiakourmas' mother was semi-conscious and he believed she would be able to respond if she could see her son. "It would help," he said.

Eleni Tsiakourmas, 78, who is diabetic like her 39-year old son, had slipped into unconsciousness and was not responding to treatment earlier in the week.

Tsiakourmas was abducted on the Pyla-Pergamos road within British bases territory. His car was found abandoned with the doors open and the lights on early in the morning.

Copyright Cyprus Mail 2001

[04] EC optimistic over economy, but warns of dependence on tourism

"The medium term prospects for the economy are good, with growth in 2002 expected to recover to the levels enjoyed in recent years," the Commission says. But it cautions that "the long run growth potential depends crucially upon whether or not Cyprus will be able to limit its dependence upon tourism and diversify into other service-related activities."

The Cyprus economy will contract slightly in the coming year due to a slowing of domestic demand, largely in response to what the EC calls "underlying macroeconomic disequilibria experienced in recent years" or, more plainly, the decline of the stock market.

Public consumption will also slow, the EC says, as the government continues to put downward pressure on the fiscal deficit, but it will be offset by a "significant recovery" in fixed investment.

"After a dismal performance in 1999, fixed investment posted a limited increase in 2000. The slowdown in 1999 was an indirect consequence of the extraordinary speculative bubble in equity prices. The local stock market pulled liquidity away from both the banking sector and investment expenditure, as loanable funds were used to purchase shares. The forecast anticipates that this recovery will gain speed during the next two years."

The EC also says a "degree of uncertainty" surrounds the new monetary policy regime, with its more flexible interest-rate policy, and notes that the Central Bank has come under some political pressure to cut rates.

It notes with approval that "the Central Bank has pursued interest rate stability in order to provide time to local commercial banks to adapt to the new monetary environment" and says that "the cautious position of the central bank is justified."

The EC points to the deterioration in the country's current account, but attributes it to higher world oil prices rather than increased consumer spending or to increasing public sector wages. Lower oil prices will ease the external account burden, the Commission says.

On tourism, the EC says that tourist receipts are expected to grow strongly throughout the forecast period and points out that, as a result, the Cypriot economy is likely to become even more reliant upon tourist-related activities.

It warns that this makes the economy increasingly vulnerable to external shocks, above all from core tourist markets such as the UK.

The EC says that inflation could fall under three per cent in the coming year, depending on domestic agricultural prices, and oil prices.

"If agricultural production picks up more rapidly than expected, the prices of certain domestically produced staple items could fall more rapidly and bring inflation down faster than anticipated by the Commission."

Fiscal consolidation is expected to be strong throughout the forecast period, with the deficit likely to fall to just under 2.5 per cent by 2002. Revenue performance is likely to be exceptionally buoyant, as many of the measures introduced in 2000, such as the two per cent increase in the VAT rate, will start to have their full impact.

However, considerable expenditure pressures will appear, especially in the run-up to the parliamentary elections, and the Commission warns that further vigilance is needed to ensure that the reductions in the fiscal deficit achieved over the last two years can be sustained in the run up to EU accession.

Copyright Cyprus Mail 2001

[05] News in Brief

Military exercises begin

Four Greek jets yesterday flew over Cyprus and initiated mock ground attacks in the operation code-named Toxotis - Vergina. The National Guard used the exercise as an opportunity to activate its anti-air craft defence system.

The operation will include a rescue exercise, with the Cyprus Flight Information Region (FIR).

- - -

Man found dead in car

Morphine seized

On Tuesday, Health Minister Frixos Savvides vowed publicly to punish anyone found guilty of negligence in the case of the disappearing morphine.

Kurds sentenced in north

"We will accept any decision except returning to Iraq. We are prepared to die here. If you send us back to Iraq it means the slaughter of us and our families," Haydar Kais Yasin told the 'court' yesterday. It is not yet clear if the Turkish Cypriot authorities will deport the immigrants or not.

Copyright Cyprus Mail 2001

[06] Tax reform could net more cash from evaders

Given that Cyprus is forced to raise VAT to a target of 15 per cent before joining the European Union, DIKO deputy Marcos Kyprianou yesterday told the Cyprus Mail that the tax cuts were a way for people to cover some of their losses.

"A reduction in income tax and an increase in VAT could be more equitable. The only problem with DIKO's suggestion is that if you increase VAT and lower income tax, then you don't help the people who don't pay tax. Yes, you catch the tax evaders, the big fat rich guys, but the poor are hit by VAT," one economist told the Cyprus Mail.

He said the package could increase state revenue, by netting more money from the rich in terms of VAT, given endemic tax avoidance and tax evasion.

But Kyprianou, chairman of the House Finance Committee said that direct housing benefit and education subsidies would benefit the poor, as tax cuts would the better off.

"This is the EU approach, not to have social policy through taxation, but to make direct payments to those in need," he said.

He added that the details of extra subsidies would be discussed in the new parliament, after the May 27 general elections.

Responding to criticism that the tax pledge was blatant electioneering, Kyprianou countered that only half of the party's six-page document on the economy, published on Tuesday, related to the tax issue.

"We've published other documents on all aspects of life in Cyprus. We couldn't announce our proposals on the economy without mentioning out proposals on tax," he said.

He said the tax cuts were less important than the need to simplify the taxation system to bring Cyprus into line with US and European practice.

Kyprianou said 25 different tax brackets would be replaced by three basic rates.

Economists were yesterday divided over whether the cuts would inject more liquidity into the economy, or bolster savings and investments, given that people would have more disposable income.

Kyprianou said the extra income would keep pace with the rising cost of living and the planned VAT hikes, which in turn would stimulate growth.

DIKO also supports a lowering of corporate tax to 12 per cent, which Kyprianou said would keep serious offshore companies in Cyprus. International businesses are currently taxed at 4.25 per cent, while domestic companies pay between 20 and 25 per cent tax to the government. EU harmonisation requires a single rate for all companies.

The DIKO paper on the economy wants to raise the taxable threshold to £10, 001, compared to the current £6,001.

Income between £10,001 and £18,000 would be taxed at 10 per cent; £18,001 to £28,000 taxed at 20 per cent and income over £28,001 at 25 per cent.

The current tax brackets are £6,001 to £8,000 at 20 per cent, £8,001 to £11, 000 at 30 per cent, with all incomes over £11,001 at 40 per cent.

Copyright Cyprus Mail 2001

[07] Opposition rounds on government for desalination glitch

Despite the official ceremony, attended by guest of honour Israeli Foreign Minister Shimon Peres, the plant won't deliver any water to consumers for another two weeks, after chemical analyses revealed the boron content was twice the minimum recommended safety level.

AKEL chairman Demetris Christofias said the inauguration of a unit producing faulty water was "an attempt to hoodwink the people".

Speaking of the glass of water handed to President Glafcos Clerides in the official inauguration, he said: "it's not the damage from one glass of water, it's the damage caused by actions outside the realms of ethics. The government had an obligation not to go ahead with the inauguration, given that the project had not been completed," he said.

DIKO leader Tassos Papadopoulos was more measured in his criticism, but also puzzled by the train of events.

"It is somewhat strange that although the Ministry knew the water was unsuitable at least ten days beforehand, it did not announce this. Without this being a deadly sin, the function of the desalination unit is one thing and the inauguration another," he said.

But the government yesterday brushed aside the matter, which yesterday erupted into a full-scale media frenzy.

Agriculture Minister Costas Themistocleous said AKEL must be running dry of arguments, in order to try and take advantage of a technical problem.

He said the problem did not affect the continuous supply of water to all households in Cyprus pledged by the government from last December 15.

At Monday's inauguration the Minister and the President both hailed the Larnaca desalination unit as the answer to the nation's water problem, ensuring there would be no more water cuts in Cyprus.

Government Spokesman Michalis Papapetrou was yesterday scathing about the opposition's criticism.

"The logical conclusion is obvious and just because there are elections it doesn't mean we have to divorce ourselves from logic. There was a contract with a contractor who undertook to complete a certain project. The job was completed. There remains an insignificant peripheral job before water is sent to the consumer. Plus, this issue cropped up because the government refused to accept the water with this aberration," he said.

Politis newspaper broke the scandal in a front-page article on Tuesday that revealed the boron content in the water was double the minimum recommended safety level.

The Agricultural Ministry told the Cyprus Mail that the technicality would take two weeks to fix.

Copyright Cyprus Mail 2001

[08] Cyprus says it co-operated fully with UN over Angolan arms investigation

And Government Spokesman Michalis Papapetrou insisted that Cyprus had responded faster and more positively to requests for information than several of the other countries involved in the UN probe.

Papapetrou named the companies allegedly involved as Skysec Secretarial Ltd, and Armimplex Hytech Ltd.

In its report, the UN named Skysec and Armitech, and said the "central role played by the brokering companies in the procurement of arms by UNITA is overwhelming and cannot be overestimated."

Papetrou, however, did not mention two other Cyprus-registered firms named by the UN, Dunford-Avia Progress Ltd (Cyprus) and Global Omarus Technology Ltd, which eventually changed its name to EMM Arab System Ltd. (Cyprus).

Both firms are alleged to have traded in arms to Sri Lanka in the mid- 1990s. The UN is concerned not only about continued arms trading, but also about the location of funds in connection with the illicit traffic.

"The government was informed about the report of the UN Monitoring Mechanism on Angola Sanctions which was circulated on April 18 and is being studied," Papapetrou said yesterday.

He said that Cyprus had responded immediately to the request for information in December, when the initial report came out. The information was passed on by Cyprus` permanent representative to the UN in New York, Papapetrou said.

"The December report referred to some persons, not Cypriots, who were sending guns to Sierra Leone," he said, adding that Cyprus implemented all relevant UN resolutions and sanctions.

Angola's UNITA rebels are currently under arms, oil and diamond-trade sanctions for conducting their protracted civil war against the central government. Sanctions were first imposed in 1993 and the diamond ban in 1998.

"From all the countries that were asked for information before the report was drawn up, Cyprus acted immediately, positively and effectively," Papapetrou said, without giving details.

"And as far as the companies mentioned in the report are concerned, these are overseas and there is no involvement of Cypriot interests."

According to the UN report, the arms were exported via the small West African state of Togo with the aid of false end-user certificates.

The UN said that KAS Engineering was administered by Skysec. The panel also identified four other firms, one each in Cyprus, the UK, Israel and the Bahamas.

Copyright Cyprus Mail 2001

[09] Co-op offences were disciplinary, not criminal

But the Cabinet-appointed committee which conducted the investigation into the claims suggested that some of the bank's members could be sacked for disciplinary offences.

The Cabinet yesterday convened to discuss the investigation's results.

Pittokopitis, a DIKO hopeful for the elections in May, and other members of the co-operative are being investigated for exceeding their allowed overdrafts from the bank.

Papapetrou told his daily briefing after the Cabinet meeting yesterday that members of the co-operative might have committed disciplinary offences, but that Attorney-general Alecos Markides would have the last word on the whole affair.

The investigative committee's report on the case, released yesterday, suggests that: "members of the bank have broken the law on co-operatives but have not otherwise breached the law. Nevertheless, some of their actions constitute abuses of trust and this kind of offence is punishable with sacking."

Pittokopitis insists that he paid back the excess overdraft in full.

The Cabinet is also looking at the results of a separate investigation into claims that officials of 12 other co-operatives had exceeded their allowed overdrafts.

"In this case too, it seems that officials have committed disciplinary and not criminal offences," Papapetrou said.

Copyright Cyprus Mail 2001

[10] Politics spill over into CY board meetings

Simerini newspaper yesterday reported details of heated board meetings exposing differences of opinion between chairman Haris Loizides and other members.

Sources told the Cyprus Mail yesterday that there had been some differences of opinion over leaks to the press regarding the recent fleet renewal decision and the Olympic takeover plans.

"It's because we are entering the election period and everything is becoming a political issue now," the source said.

Simerini said the crisis had emerged when the House Communication and Works Committee called on the CY chairman and press spokesman to control the flow of information relating to the two deals.

However, the paper said that two members of the board had gone public on their disagreement over the recent fleet renewal.

It said that on February 15, during a board meeting, Loizides had accused the two members of leaking information to the press on every decision taken by the board, even if they themselves had disagreed.

The two board members, DIKO's Achilleas Kyprianou, and AKEL's Stavros Evagoras, reportedly defended their actions saying that members of the board had to brief their parties on serious issues.

Another board member said the role of board members was to act responsibly and in the company's best interests without any influence from whatever parties they belonged to.

Simerini reported Kyprianou as saying his role as vice-chairman was being undermined, but another board member accused him of sitting on the fence when major decisions were being made.

Copyright Cyprus Mail 2001

[11] Limassol facing meningitis outbreak this summer

"There are definite indications that if we continue at this rate there will be an epidemic in the summer," senior district health officer Christalla Hadjianastasiou said yesterday.

Viral meningitis is nowhere near as dangerous as the sometimes deadly bacterial form of the disease.

Earlier this month, the Health Ministry issued a general viral meningitis warning, stating that the number of cases of the contagious disease in the first three months of 2001 was double that of the same period last year.

The 16 cases of enteric viral meningitis recorded in January, February and March prompted the ministry to issue strict guidelines on how to avoid catching the disease.

But the situation has since worsened, especially in Limassol. "For 2001 so far, we have had 30 cases of viral meningitis, 27 of them in Limassol," Hadjianastasiou said. "This is definitely a cause for concern, especially as the cases in Limassol are going up from month to month. In March, there were eight cases and in April, 14 so far," the medical expert said.

She said most of those affected so far were children of pre-school age, but the disease now appeared to be spreading to primary school children.

The main symptoms of viral meningitis are a high fever and headaches and the Health Ministry names strict personal and home hygiene as the best way to prevent the illness from spreading.

Last year, there was a five-fold increase in the number of those suffering from meningitis, though the vast majority of cases was not life threatening. There were 134 incidents in total, but more than three quarters were viral - the others bacterial, of which only four were meningococcal, one of the most dangerous types. In December last year, the Health Ministry said the rise in meningitis cases was not down to any particular reason and was not a cause for serious concern.

To prevent spread of the virus through personal contact, people are advised to observe strict rules of personal hygiene and general cleanliness.

The ministry urges that hands be washed regularly, eating utensils never be shared, underwear be changed daily, babies' nappies be changed well away from food preparation areas, the mouth be covered when coughing and the hands washed immediately afterwards, that children be discouraged from hugging or kissing others and especially non family members and that pregnant mothers avoid contact with sufferers.

Health officials also say a diluted chlorine-based cleaner should be used for house cleaning, homes should be kept well aired, rubbish taken out regularly, bedclothes changed regularly and outdoor areas kept as much as possible litter-free. The ministry also advises that crowded places be avoided, especially where young children are concerned.

Copyright Cyprus Mail 2001

[12] MOT test centre opens in Nicosia

Working to French test procedures, which are in accordance with EU requirements, each vehicle presented for inspection undergoes 134 checks, from critical systems like the brakes to more minor problems of which the owner should be aware, even though they may not cause the car to 'fail' its MOT. The whole process takes about twenty minutes.

The cost of Autovision's test has not yet been set, even though the government, in readiness for when MOT tests become law, has determined that each test should cost £25.

"We will be charging less than that," says Antonis Michaelides of KMPM, "we want motorists to check their cars on a voluntary basis, until it becomes a legal requirement -- it's for their own benefit."

The company has reached an agreement with the General Insurance Company of Cyprus, which will offer its customers free car checks.

The planned legislation to bring Cyprus into line with Europe, which must be in place by 2003, will be introduced in two phases. Until the EU cut-off date, centres which receive a licence to operate will also be allowed to undertake the necessary repairs of vehicles, something forbidden under EU regulations, and the certificate will be issued by a government department, which will take £5 of the cost.

Once Cyprus is fully harmonised, as of January 1, 2003, test centres will not be allowed to offer any service to customers, and motorists won't be required to call at a government department before and after the procedure for the relevant documentation.

Autovision has plans to open test centres in other towns, and may even bring a mobile unit to the island, depending on the passing of the requisite legislation.

Copyright Cyprus Mail 2001

[13] Pourgourides and Michaelides lock horns

In a written statement, Pourgourides charged that Michaelides' attack on governing DISY earlier this week was nothing but an attempt to deflect attention from the fresh corruption allegations Pourgourides had levelled against him.

Michaelides set up ADIK two years ago after persistent corruption allegations from Pourgourides, who is chairman of the House watchdog committee, forced him to quit his post as Interior Minister.

The two men have repeatedly squared off since then, and their latest political battle is undoubtedly catalysed by the proximity of next month's parliamentary elections.

Pourgourides says Michaelides abused his position as Minister to have a Limassol restaurant knocked down in order to accommodate private interests, in 1999.

Michaelides denied the accusations and laid into the DISY leadership, saying it was ignoring the contribution he made while he served as Minister under Clerides' DISY-backed government. Michaelides claimed this contribution was widely appreciated among the DISY rank-an-file.

Pourgourides hit back yesterday: "Instead of dealing with the huge scandal of serving private interests, and instead of apologising to the people for his lies, Mr. Michaelides resorted to an attack on the DISY leadership by tabling various laughable questions," he said in a statement.

Copyright Cyprus Mail 2001

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