Cyprus Mail: News Articles in English, 01-12-14

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

Friday, December 14, 2001

CONTENTS

[01] Cyprus to scrap landing fees and airport tax in bid to boost tourism

[02] Cypriots to testify in the Hague?

[03] Security Council welcomes talks initiative

[04] Markides: government has to expropriate land to protect refugees

[05] Teachers strike in the north in defence of sacked teacher

[06] Nicosia doctor arrested after newborn sold

[07] SEC: there's nothing more we can do over GlobalSoft

[01] Cyprus to scrap landing fees and airport tax in bid to boost tourism

LANDING fees for airlines are to be scrapped at the island's two airports until the end of May in a bid to boost flagging tourism in the wake of the September 11 terrorist attacks in the US.

The £8 passenger tax for outgoing travelers would also be abolished for April and May next year, Commerce, Industry and Tourism Minister Nicos Rolandis said yesterday.

The move comes as British tour giants slash capacity for next summer because of a fifty per cent drop in bookings compared to the same period last year.

The government has been racing to put together a package of measures worth over £20 million in a bid to save the island's tourism industry. The measures include an additional £4 million for advertising for 2002 on top of the usual £13 million.

Scrapping the landing fees and passenger tax, which is added to the cost of every plane ticket, will cost the government a further £5.5 million and the measure will come into effect as soon as it is approved by parliament, Rolandis said.

It is designed to encourage more tour operators and airlines to include Cyprus on their itineraries.

" This move will also benefit Cypriots travelling out of Cyprus,"Rolandis said.

" Under the state aid legislation of the European Union, we cannot differentiate between tourists and locals. If we impose a measure and abolish taxation it has to be for everyone."

But Rolandis pointed that 80-85 per cent of the outgoing traffic at the chosen time of the year was made up of tourists.

He said that of the £5.5 million approved by the Cabinet on Wednesday, £4 million would cover the cost of subsidising the passenger tax and the remainder the landing fees.

Landing fees in Cyprus are the cheapest in Europe, ranging from £150-£200 per landing, depending on the size and type of the aircraft.

" This means that a tour operator landing its aircraft in Cyprus saves these £200 compared with other airports,"Rolandis said.

Commenting on the prospects for next summer and the news that the three major UK operators on which Cyprus depends for its British market were cutting capacity, Rolandis said that, although he was aware that bookings were down, it was too early put a definitive figure on it.

" As far as I know, bookings are down. But this is not absolutely indicative of the results for next year because in Britain now people are becoming late bookers as time goes by,"he said.

" The real bookings will be from January to February, so it's a little premature to draw any conclusions at this stage on what tourism next year may be."

Rolandis said his personal feeling was that with the US-led war in Afghanistan winding down, tourism would not suffer as much as initially feared.

" Of course, we are left with a recession and a feeling of restraint on the part of travellers,"he said. " I do not want to make any forecasts. It's difficult. But I do not share the extent of the pessimism of some of the people. I believe that with the measures we have adopted, Cyprus will be in the best possible position."

Copyright Cyprus Mail 2001

[02] Cypriots to testify in the Hague?

THE WAR crimes tribunal in The Hague yesterday refused to comment on reports that Cypriots might be called to testify against former Yugoslav President Slobodan Milosevic, who faces charges of genocide.

Florence Hartman, spokeswoman for the prosecutor's office at the International Criminal Tribunal, was unable to confirm or deny reports that Cypriots had been subpoenaed to testify in the case against Milosevic.

A report in yesterday's Alithia said Attorney-general, Alecos Markides would in the coming days receive subpoenas for Cypriots from the office of tribunal prosecutor Carla Del Ponte.

However, Markides told the Cyprus Mailthat he was completely " unaware of anything concerning the matter" .

According to Alithia , the Cypriots allegedly helped associates of Milosevic set up offshore companies in Cyprus, which were then used to launder money. This money, according to the indictment, was then used by Milosevic to arm Serbian forces in the war in Bosnia.

The witnesses would be called before the tribunal to explain how offshore companies were created, and how the former Yugoslav administration was able to move money abroad, the report said.

Hartman was, however, unwilling to confirm the reports.

" This sort of information is not released to the press until the actual day of the case,"she told the Cyprus Mailfrom The Hague.

Hartman said that witnesses' names were only revealed in court and that interviews carried out in the course of an investigation were " not a matter for the press" .

" We will not confirm or deny anything and do not comment on rumours, allegations or speculation as to who will be called in to testify or who has been interviewed.

" The trials are public, and most witnesses testify in open session, which are accessible to the public and press."

She said co-operation from the Cyprus authorities in gathering information and evidence in the Milosevic case was " OK" , but would not comment on whether or not investigations were still being carried out on the island, and what case files were being examined.

Whether any of the information gathered in Cyprus would be used in the proceedings against Milosevic was classified information, Hartman said.

She said the Belgrade State Prosecutor was working on the financial side of the case and that charges of corruption during Milosevic's reign in Yugoslavia would be dealt with separately there.

" One aspect of the financial investigation will be used in the Milosevic case, because it helps clarify his support of various forces and the influence he had over the Bosnian Serbs. Mostly though, all financial evidence and documents have has been deferred to the local prosecutor in Belgrade, who is building an abuse and corruption case against Milosevic during his 13-year leadership."

Financial corruption is not the tribunal's mandate, except when it is linked to the violation of international humanitarian law, Hartman added.

The Central Bank was not aware of the reports that Cypriots had been called to testify.

Del Ponte visited Cyprus over a year ago and collected information on Yugoslav offshore companies in connection with the financial aspect of the case.

The Manager of the International Banking and Financial Services Supervisory Department at the Central Bank, Spyros Stavrinakis, was yesterday unable to say whether the information supplied to Del Ponte had been linked to the war crimes investigation in any way, or if it would be used in the Milosevic trial.

Copyright Cyprus Mail 2001

[03] Security Council welcomes talks initiative

THE U.N. Security Council has formally welcomed next month's planned face- to-face meeting between President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash, saying it hoped fruitful negotiations would lead to a settlement.

Clerides and Denktash agreed on December 4 that they would resume direct talks in an attempt reach a settlement by June 2002.

" Council members welcome this and other positive developments, and hope that progress will be achieved at the negotiating table, resulting in a comprehensive settlement,"said a statement read by Mali Ambassador Moctar Ouane, this month's Security Council president.

Pressure to reach a solution has been reinforced by Cyprus' looming EU accession.

In Brussels, Foreign Minister Yiannakis Cassoulides said that if no comprehensive settlement were reached by June 2002, after six months of direct talks, it would mean the negotiations had no meaning. " We will not allow it to be protracted up to December 2002, in order to avoid endangering Cyprus' accession course,"Cassoulides said.

But he warned against back-door partition through confederation: " We cannot accept that this island can be partitioned by designating one part as belonging to the Turks and the other part belonging to the Greeks," he added. "We can accept the Swiss system in its totality and the Belgium system as well."

Referring to the December 4 agreement to resume talks, Cassoulides said Denktash was either being sincere about negotiating or was making a tactical move.

"If he is sincere, of course, he will find President Clerides equally sincere and prepared and ready for a compromise within the spirit of give- and-take," he said. And he added that, if Denktash had made a tactical move, it was to avoid external and internal pressure and to drag out negotiations in order to find an excuse to stop Cyprus' EU accession or to lead the talks to failure, with both sides sharing the blame.

"The Turks now want EU screening; they most probably won't get it but they want to cash in somehow. They want money, I am sure they will get something, " Cassoulides said. "We don't care about this but we do care to get a settlement in Cyprus."

UN Secretary-general Kofi Annan regards the start of direct talks as a "positive development" and hopes negotiations will take place in good faith and lead to a comprehensive settlement.

In a letter to the President of the Security Council, Annan informed members that talks would start on January 16, 2002 at his invitation in the exercise of his mission of good offices.

"This agreement is a positive development and I would like to hope that, as they have agreed, they will negotiate in good faith until they achieve a comprehensive settlement," he said in his letter dated December 10, which circulated Wednesday as an official UN document.

Copyright Cyprus Mail 2001

[04] Markides: government has to expropriate land to protect refugees

ATTORNEY-general Alecos Markides yesterday said the only legal way for the government to protect refugees from being evicted from the formerly Turkish Cypriot land they occupied was to expropriate the land.

The issue emerged after a plot of land in Larnaca was sold to Greek Cypriots, who now want to develop it and want the refugees living there to leave.

The eviction has been halted by Interior Minister Christodoulos Christodoulou, who was apparently caught unawares and has promised the refugees they would not lose their homes.

But Markides said the government could not protect the refugees with words.

" Courts do not obey and do not follow government policy, ministers' proclamations or even presidential statements."

He added: " The courts will enforce the constitution and the state laws."

" If the state wants the refugees, who for so many years have occupied this property, not to be evicted by the legal owners, then the way to protect them exists, it is legal, and recognised by the constitution and international conventions,"Markides said.

He said the government could expropriate the land on grounds of public interest.

Markides said it was up to the government to decide whether to appropriate the specific properties in the near future, adding that the sooner that was done the better.

He explained that since these properties had been bought at lower prices than they were actually worth, this would be an important factor affecting the compensation paid by the state.

" Securing possession of the land by the occupants can be effective only through appropriation,"Markides said.

Copyright Cyprus Mail 2001

[05] Teachers strike in the north in defence of sacked teacher

Her dismissal sparked riots at the '20 Temmuz Science Lycee' as students and teachers clashed with 'police' on Monday.

During the fracas, 'police' battered a senior trade union official over the head with a fire bucket as students crowded in the corridors shouted abuse.

On Wednesday, the situation in the occupied areas further deteriorated with a raid on Avrupa 's offices and the seizure of all the equipment.

The raid, however, did not stop Avrupafrom coming out yesterday.

Under the banner headline "you cannot silence us"the daily charged that the occupying regime was showing its fascist face, but would not be able to silence the newspaper.

" The news will be spread through e-mail, fax, telephone, and even mouth to mouth because we are not just a newspaper but a strong root that will lead us to the light," Avrupasaid.

Copyright Cyprus Mail 2001

[06] Nicosia doctor arrested after newborn sold

A NICOSIA gynaecologist suspected of being involved in the sale of a three- day-old baby to a Greek couple was yesterday arrested.

The 37-old-man, who practices at a well-known Nicosia clinic, allegedly conspired with two other individuals in arranging the sale, police said.

According to police, the doctor arranged the arrival on the island of a Romanian woman who four days ago gave birth to a healthy boy by caesarean section.

Police said the suspect immediately handed the child over to a Greek couple who were allegedly present at the clinic, bypassing all legal adoption procedures.

Reports said the baby's mother, who is married to a Romanian man, allegedly came to Cyprus to work as an artiste in a cabaret.

Police are looking into the possibility of an artiste agent also being involved in the case, since it has been reported the woman was seven months pregnant when she arrived on the island.

Police HQ CID Director Tasos Panayiotou remained tight-lipped yesterday but did not rule out further arrests.

The gynaecologist was arrested at 2pm.

Police last night issued a statement stressing that the owners of the clinic were not in any way involved in the case under investigation and were only renting space to the suspect.

Justice Minister Nicos Koshis said police, who had information about the alleged deal, had been watching the situation closely, and acted with utmost secrecy.

He said the Greek couple who were present at the clinic were going to try and pass the baby off as their own.

The baby boy is now under the care of the welfare office.

The suspect will be presented before the Nicosia district court today.

Police were now looking into the possibility of any similar cases taking place in the past and if an organised ring was behind the act.

Copyright Cyprus Mail 2001

[07] SEC: there's nothing more we can do over GlobalSoft

THE SECURITIES and Exchange Commission (SEC) said yesterday there was nothing it could do to force the Cyprus Stock Exchange (CSE) board to carry out its recommendation to suspend trading in GlobalSoft shares.

SEC President Marios Clerides told the Cyprus Mailthat his body did not have any authority over the CSE - both are semi-government bodies - and could not therefore force GlobalSoft from the trading floor.

On Tuesday, the SEC recommended the suspension of trading in GlobalSoft shares, pending an investigation into alleged breaches of stock exchange regulations.

An SEC announcement said the commission had on Monday examined a report by independent auditors into the company's stock market dealings and was as a result recommending suspension.

GlobalSoft has been trading under a separate category and on certain conditions regarding share price fluctuation for almost a month after being suspended from trading for a while in early October.

Regulators started investigating GlobalSoft after American authorities launched their own inquiry into AremisSoft, its US affiliate, earlier this year.

Former AremisSoft executives had their bank and broker assets frozen by a US federal court in October amid allegations the company had overstated revenues and inflated the value of customer contracts and acquisitions.

AremisSoft owns some seven per cent of the Cypriot concern. One of the former AremisSoft executives cited in the US lawsuit, Lycourgos Kyprianou, is chairman of GlobalSoft.

GlobalSoft was allowed to return to the floor in mid November under certain conditions, which included filing weekly reports on its trading activities.

But the CSE board on Wednesday refused to approve the SEC request for suspension, citing lack of available evidence.

" There is nothing we can do,"Clerides said, commenting on what further action the SEC could take. He added that if eventually the CSE became a private concern, it could be brought under the direct supervision of the SEC.

Referring to the recommendation to suspend GlobalSoft, Clerides said it was not a penalty against the company.

" A lot of people think it's a penalty but it's not that,"he said. " It's a move to protect investors."

In a brief but terse announcement yesterday, GlobalSoft said: " Irrespective of our bitterness at the thoughtless and legally reprehensive announcement of the Securities and Exchange Commission (SEC), in respect of which we reserve our right to react as a company, we would like to declare that we have started the implementation of our new strategy, as announced on 11/12/2001."

GlobalSoft shares ended almost one cent down yesterday at 15 cents while the technology sector fell 0.64 per cent.

All market indices fell yesterday, with investors appearing to be in low- confidence mode. Losses ranged from 0.32 per cent in the construction sector to 2.74 per cent in the tourism sector. Bank stocks fell 1.39 per cent.

all-share index ended the day 1.15 per cent down at 136.5 points while the blue chip FTSE/CySE index shed 1.12 per cent to 538 points. Only 24 titles recorded gains compared to 76 decliners and 42 which closed unchanged.

Copyright Cyprus Mail 2001

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