TOP DIPLOMAT at the Presidential Palace Marios Ieronymides tendered his resignation yesterday following allegations of a conflict of interest in his relationship with the Chinese investor interested in turning the old Larnaca airport into a commercial centre.
The allegations claimed that Ieronymides benefitted personally from his ‘friendship’ with Yang Qi, sole shareholder of Far Eastern Phoenix (FEP), the company that signed a deal with Hermes Airports for a 19 year lease on the old airport.
Since the deal was signed, Far Eastern Phoenix has been in negotiations with the Cyprus government to extend the airport deal for a further 31 years. FEP wants to turn the old airport into a commercial centre, which would include a showroom and bonded facilities for Chinese industry.
On Wednesday, the Greek language daily newspaper Politis reported that Ieronymides was present at the signing of the agreement between Hermes and FEP. It also reported that his wife, Tatiana Ieronymides, was a co-director of the company from when it was created in April 2009 where she remained until March 2012. Politis reported that Tatiana Ieronymides resigned just six days before FEP signed the 19-year lease agreement with Hermes.
Yesterday, it was revealed in another Greek language newspaper “Phileleftheros” that Ieronymides was involved in another conference regarding the Chinese investment at the old Larnaca Airport.
Ieronymides denied the allegations saying 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.
State broadcaster CyBC confirmed the newspapers’ allegations adding that Ieronymides briefed the President on the issue in a phone call late Thursday afternoon. He later submitted a memo giving explanations into the Chinese investment.
According to reports, President Christofias accepted Ieronymides’ resignation.
Far Eastern Phoenix is currently in negotiations with the Cyprus government to extend the airport deal for a further 31 years.
@Nigel. The same lack of transparency applies to local council decisions, for example local residents are deemed not entitled to know in relation to land purchase by the council:
who the land was bought from
for how much
declaration by the vendor of no familial, business or other connections with council officials
list of other other land, prices and vendors considered
A similar situation exists in relation to council tenders and awards for e.g. building and civil engineering works.
Transparency is one of the main elements of good governance and the demonstration of anti-fraud and anti-corruption policies – but you will find very little of such transparency in Cyprus and many third world countries. The clear and reasonable inference is that the block on transparency exists in order to not reveal fraud and corruption.
“I cannot see any reason why such information is not available to the public.”
Hmmmmmm
@Mike – thanks for your comment and I agree with that this sort of thing happens all over the world.
One thing that makes people more suspicious is when information about financial standing and interests that may influence those in public office is kept secret.
Having lived in Cyprus for more than ten years, it appears to me to be a very secretive society. For example – there is no publicly available register of interests for those in public office, I can’t find out who owns a property (let alone when they bought it and what they paid for it), judgements against lawyers made by the CBA Disciplinary Board are confidential.
I cannot see any reason why such information is not available to the public.
Sounds like Ieronymides did the right thing. Cyprus certainly needs the deal with China and this ought to be ‘clean’ from the outset. Hopefully mutually beneficial terms – Cyprus Government, Hermes and Chinese Developers – can be agreed and this potentially valuable long-term relationship enabled. The country needs greater diversification and to capitalise much more in future on its uniquely strategic location.
Why do officials not declare all wealth at the start of an official term of duties where they are in a position to influence and then again at the end of their tenure. Many, it would appear, accumulate vast wealth way beyond what their salaries and investments would reasonably be expected to achieve during the period, leading to suspicions. It happens the world over.
Are we to believe that most politicians and offices of authority are self serving and out for what they can get out of the public purse and just use public service as a mask to hide the fact? A rhetorical question I think – the answer seems all too obvious.
They should hurry up and sign the 31 yr lease . It will be good for the island
It is a pity that the President could not make as fast a decision to extend the lease on the old airport as he did to accept the resignation of Mr leroymides. When the Chinese move to Malta instead of Cyprus who will accept responsibility as so far they have had 18 months!! to take the decision. Doing nothing is not an option.
This isn’t news! Please report something that is not about corruption.
Although on reflection, I’m being unreasonable in asking you to do the impossible in Cyprus.
Basura