Three more arrested over Cyprus property scam

Two senior members of the communist party Akel and a businessman were arrested Wednesday for their involvement in a multi-million property scam where the Cyta staff pension fund was used to buy a plot of land near Larnaca from the original Turkish Cypriot owner and resell it at a higher price to the telco for its own operations.

The scandal broke when several senior Cyta managers, including the chairman, were named as allegedly having received bribes to conclude the deal, valued at about 24 mln euros.

Venizelos Zanetos, member of the Akel secretariat and head of the party’s finance team, and Christos Alekou, also a member of the secretariat, were arrested according to breaking news reports, as was Antonis Ioakeim, a 25% partner in Wadnic Trading Ltd., a property company owned by Nikos Lillis, chairman of the pro-Akel football club Alki.

Lillis, who is also under arrest, turned whistle-blower after attempts by others to blame him for the whole deal forced him to reveal names and admit the involvement of Akel party members.

The communist Akel, whose 5-year administration ended in March, having brought the Cyprus economy to its knees, denies any official party involvement in the who deal.