Heavy political and institutional shadow leaves Cyprus with the finding of the Independent Authority against Corruption for the book of journalist Makarios Drousiotis "State Mafia", as the Authority records possible criminal offences for a series of natural and legal persons, including the former President of the Republic, Nikos Anastasiades.

The case takes on dimensions beyond the Cypriot limits, as it touches the period of rule Anastasiades, the functioning of critical institutions, the administration of justice, the naturalizations of foreign investors, the banking system and the management of cases with strong economic factors from abroad.

The Authority's communication, released today, is based on the final report of four inspection officials appointed exclusively for this investigation. It is a massive material of some 3,000 pages along with the annexes, a research product involving 214 sessions and hearings, 150 witnesses and 793 evidence from 41 legal persons and government departments.

From book to research

The book “Mafia State“ was published in August 2022 and contained serious allegations of corruption, with special emphasis on then-President Nicos Anastasiades. Please note that journalist Makarios Drousiotis was an associate of Nikos Anastasiades during his presidency and then collaborated with Christos Stylianidis when he was an MEP and Commissioner of Cyprus in the EU before being appointed by Kyriakos Mitsotakis. The Authority decided to conduct an independent investigation, following requests made publicly, among them by the then presidential candidate Andreas Mavroyiannis and by N. Anastasiades himself.

Head of investigation designated Australian legal officer Gabrielle McIntyre, specializing in international criminal law, while participating in the group Cypriot lawyers Charilaos Chrysanthou, Orestes Nikitas and Andreas Efthymiou. The choice of foreign chief was not accidental. The Authority states that it was deemed necessary due to the gravity of the case and the possible doubts about the impartiality of the procedure.

The Authority explains that it adopts part of the final report of inspection officers and not necessarily any individual assessment or legal characterisation. He also notes that the final judge for the guilt of any person is only the court. This labelling is crucial because the finding does not constitute a conviction, but a record of any criminal offences to be assessed by the competent prosecution authorities.

The responsibilities attributed to N. Anastasiades

The heavier political finding concerns former Cyprus President Nikos Anastasiades. The summary table of the Authority shall record for the same seven cases any criminal offences. In particular, three cases of trafficking in influence, one case of abuse of power to the extent of a felony and three cases of abuse of power to the extent of a misdemeanor or attempt to commit a criminal offence.

Trade in influence, in simple language, concerns a case in which one appears to use a real or apparent influence on a public official or state process, in exchange for an unfair advantage. The Authority refers to the Council of Europe Convention on the Criminalisation of Corruption, ratified by the Republic of Cyprus.

In the case of N. Anastasiades, the findings are linked to different cases. These include the Focus Maritime case and financing to the Democratic Alarm of which he has been President, issues relating to procurement and banking intermediation, as well as cases of naturalisations of foreign investors, where it is considered whether institutional influence has been used for the benefit of private interests.

The Authority refers, inter alia, to testimony that the former President had intervened or contacted the Legal Service while the Focus Maritime case was under investigation. The inspection officers considered that such intervention could constitute inappropriate exercise of executive pressure on a constitutionally independent agency.

Legal office and partners

Potential criminal responsibilities are also recorded for the law firm "Nikos Ch. Anastasiades & Partners", as well as for its partners, Stathi Lemi and Fanos Filippou. For each one, two cases are mentioned: trafficking in influence and money laundering. The same possible offences are also attributed to the law firm as a legal person.

On the bank procurement side, the finding states that the law firm was one of the major intermediaries of Bank of Cyprus and received significant amounts as supplies. It also refers to payments not paid directly to the office, but to offshore companies in the British Virgin Islands, which bank records linked to the office or to its foreign partners.

The Ribolovlev case and Justice
Particular weight is placed on the case of Russian oligarch Dmitri Ribolovlev and in the judicial dispute with his ex-wife Elena Ribolobleva. The Authority records possible offences against former President of the Provincial Court of Nicosia Harry Solomonidis, the law firm A. Neocleus & S.A.P.E. and lawyer Panayiotis Neocleus.

For Harry Solomonides three cases shall be recorded: Decimal of a public official, transactions with representatives suggesting corruption and unfair acquisition of property. For A. Neocleus & Sia S.E.P.E. Three cases shall also be recorded, including active bribery of relevant public officials and corporate responsibility of a legal person.

For Panayiotis Neocleus a conspiracy to overthrow the course of justice is recorded.

A key element in the finding is the hiring of Judge Solomonidis's wife to the law firm Andreas Neocleus & Sia, a few days after the issuance of interim orders for the company's clients. The Authority states that the temporal proximity of recruitment to court decisions and the non-disclosure of the real employer give rise to a reasonable suspicion that recruitment might constitute a consideration or asset benefit.

Former Assistant Attorney General, Police and MOKAS
The conclusion also identifies the Ricos Eroscritou, former Assistant Attorney General, for two cases of abuse of power to a degree of misdemeanor. One concerns the Focus Maritime case, where his intervention in the police investigation is recorded, with a request that he be given original evidence and instructions not to maintain copies by the researchers.

For John Soteriades, senior police officer, the Authority records a case of abuse of power. The finding refers, inter alia, to a withholding of an initial complaint from his immediate supervisor, to a leak of information to the complainant's side and to a delay in returning Elena Ribolobleva's passport.

For the Eva Russianidou Papakyrikou, former Head of the Counterfeiting Unit (MOKAS), the Cyprus Financial Information Unit, are listed two cases: abuse of power or attempt and neglect of service duty. The Authority states that the unit, although it had an active investigation duty, was sufficient to explain without sufficient independent verification for transactions showing evidence of money laundering.

Banks, Focus and political money

In the banking sector, the Authority records responsibility for the Euthymium Buluta, then CEO of the People's Bank. He is attributed to trade in influence and money laundering. The finding states that he allegedly gave instructions for payment of €250,000 and approved relatively virtual invoices so that the payment would appear as a commission.

For the Focus case, the Authority does not adopt all the claims of the book. He records, for example, that insufficient evidence was found that €100,000 resulted in a personal account of former President Nikos Anastasiades. However, it concludes that Focus Maritime was used as a payment vehicle to political parties and persons of power in Cyprus, over whom deceased Andreas Vgenopoulos and his associates wished, according to the findings, to exercise influence.

Culture and private interests
The finding also touches on the issue of investor naturalizations. Former President Anastasiades is listed as a trafficking in influence over naturalization cases, where the use of political influence for private clients is considered.

The Authority refers specifically to an application for naturalization of the wife of Russian oligarch Abramov and to a case by Russian oligarch Lebedev, noting arbitrariness in the process, as well as financial benefit for the law firm named Anastasiades. The use of Lebedev's private luxury aircraft by N. Anastasiades in 2013.

Other persons in the finding
The Authority also records possible responsibilities for the former Minister of Agriculture in the Anastasiades Government, Nikos Kougialis, to which a case of abuse of power is attributed to a degree of misdemeanor, without any evidence of personal benefit being found. The case concerns the concession of state land to the Archdiocese.

For the former MP of the Social Democratic Movement EDEK, George Barnabas a case of abuse of power or attempt is recorded. The case is linked to an attempt to promote a private company request in relation to a property, where the finding states that it used its public position to facilitate privileged access.

The painting also includes the Russian oligarch owner of the island of Scorpio, Dmitri Ribolovlev and the journalist public relations consultant Andreas Hadjikyriakos, to whom he is attributed by an impact trading case.

There's still a road

The next stage is decisive. The Authority has no jurisdiction to prosecute. The report, the testimony material and the report of the Authority itself will be forwarded to the Attorney General, and the report will also be sent to the tax collector for his own actions, since cases of possible tax evasion are also recorded.

The final report of around 3,000 pages will not be published, as the Authority considers it to be a testimonial material and that its publication could affect future interrogation procedures. Only the extensive communication with the findings adopted by the Authority was made public for public opinion.

The issue is now transferred to the Legal Service and politically, to the question of whether the investigation will be assigned to the Police, whether criminal investigators will be appointed or a combination of the two will be followed. Already in Nicosia there is also the delicate institutional issue of handling by the Legal Service, because both the General and Assistant Attorney General have been ministers of the Anastasiades government and have been appointed to the positions they currently hold also by Nikos Anastasiades. Legal circles raise a question of excluding them from the decision-making process. Problem arises with the possibility of appointing criminal investigators from the Cabinet as both current President Nikos Christodoulides and ministers participated in the Anastasiades government.

Nikos Anastasiades, who was first informed by Transparency Commissioner Harry Pogiatzis, is expected to be placed in public. The other persons shall be informed by e-mail.