New estimate values EAC land at half the amount paid

By Elias Hazou

A CHAIN reaction of developments yesterday followed investigations into a controversial land sale by the Limassol bishopric to the Electricity Authority of Cyprus (EAC).

Tourism and Commerce Minister Nicos Rolandis yesterday repeated his call for tighter ministry controls over semi-government organisations, saying such controls were necessary because, the financial activities of such bodies should have certain “limits”.

Rolandis was speaking to reporters at Larnaca airport before departing to Salonica on an official visit.

He revealed that yesterday he had received a second estimate, carried out by a private surveyors’ company, of the value of the land sold to the EAC.

The new estimate indicated that the land was worth no more than £724,000, instead of the £1.4 million paid. The minister added that he would put the matter to the Cabinet on his return on from Greece on Monday.

An estimate carried out by the government Land Surveys Department on Thursday placed the land’s value at some £800,000.

Rolandis has questioned the EAC’s failure to obtain its own estimate, relying instead on an estimate commissioned by the Limassol bishopric.

Amid rumours of fraudulent handling in the transaction by the bishopric and possible commissions paid to EAC officials acting as middlemen, Auditor- general Spyros Christou yesterday confirmed that the EAC had sent out separate tenders for land purchase, adding that the first round of tenders had been cancelled after the bishopric’s offer came in too late for the deadline. The EAC then called for a second round of tenders, allowing the bishopric to get its offer in on time.

But on Wednesday Savvas Teklos, the bishopric’s accountant, told CyBC radio that the bishopric’s first offer had reached the EAC, which later decided to cancel its first tender and announce a new one.

And speaking to reporters yesterday, Bishop Chrysanthos denied any wrongdoing by his bishopric in the land sale.

Meanwhile reports yesterday said that the House Finance Committee would launch an inquiry into the controversial land sale. The committee’s chairman Nicos Galanos yesterday told CyBC that it was “a shame that the Church is giving the image being all about big business, instead of appearing closer to the average person, the poor Christian.”

Galanos also said the Attorney-general would investigate the matter once it had looked at another pending case, again involving Church finances.

A number of deputies have already called for tighter state control of Church finances. The Church currently enjoys special status on taxation. Last week, the Auditor-general said the Church owed the government some £7 million in capital gains tax.

The government’s attention to Church finances was drawn after Justice Minister Nicos Koshis briefed a House ad hoc Committee on Crime on the web of allegations of shady business dealings against Limassol Bishop Chrysanthos.

Chrysanthos has been termed a “suspect” in a $3.7 million fraud case originating in Britain.

Meanwhile, the embattled cleric yesterday told reporters he was in no way connected to the group of Portuguese businessmen, who claim in a separate case that the bishop has swindled them out of $1.5 million.

“I do not know these people, not have I ever received any of their money,” Chrysanthos said.

“I am confident that at the end of the day, the truth will shine and right will prevail.”