Cyprus government appoints investigating officer for probe into China deal

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The government has appointed Stelios Himonas, Permanent Secretary at the Ministry of Justice and Public Order, to conduct a probe regarding the involvement of Ambassador Marios Ieronymides in a potential multimillion euro project to lease the old Larnaca airport.

According to a press report published recently at a local newspaper, Ieronymides, Director of the President’s diplomatic office, was involved in the negotiations held about the project between the government of Cyprus and Chinese company Far Eastern Phoenix, something that raised questions regarding issues of transparency.

Speaking here Thursday, Government Spokesman Stephanos Stephanou said that during a meeting on Thursday “the Council of Ministers appointed Mr. Stelios Himonas, Permanent Secretary of the Ministry of Justice, to investigate possible disciplinary offences by Ambassador Marios Ieronymides, in relation to the well known case of the Chinese investment at the old Larnaca airport”.

Stephanou stated that the decision was taken after a proposal by Foreign Minister Erato Kozakou Marcoullis.

Asked what the chances are for the investment to take place , Stephanou recalled statements made Wednesday by Minister of Communications and Works Efthymios Flourentzou, noting that Chinese investor Yang Qi linked the investment with the result of the investigation.

Yang Qi, Chairman of Far Eastern Phoenix explained on Wednesday to the Minister of Communications, during a meeting they had, that his company’s decision to withdraw its intererest in the project was the result of the report published at a local newspaper. He added that following the report in Cyprus, the Chinese media spoke of a government official accused of corruption, a development that put his company in the watch list of corruption.

Flourentzou stated on Wednesday that Yang Qi expects the problem to be solved as soon as the investigation is concluded indicating that no corruption offense has been committed by the company.

Stephanou said that when the government was called to facilitate the conclusion of the investment at the old Larnaca airport, it expressed its support to such investments, clarifying however that any such endeavour must be legal.

“We will continue efforts so that this investment takes place legally and at the same time the investigation will be conducted to find out if any disciplinary offences were committed by Ambassador Marios Ieronymides", he said.

Stephanou noted that for the government the investigation and the investment itself are two separate issues that are not linked to each other.

Yang Qi sent on August 14 a letter to the Minister Flourentzou announcing his intention to stop the negotiations on the project with the Cypriot Government, citing lengthy and complicated procedures followed in Cyprus.

Hermes Airports, the company managing Cyprus` airports, and Chinese firm Far Eastern Phoenix concluded on March 23, 2012, a multimillion-euro deal, believed to yield big financial benefits for Cyprus.

Under the deal, the Chinese firm would make a multimillion euro investment to develop the old Larnaca airport to a large commercial showroom, bonded warehouses for Chinese goods as well as a small conference centre.

The project would render Larnaca old airport a hub connecting Chinese products with Europe, Africa and the Middle East.