RULING right-wing DISY yesterday called on political parties to follow its example in releasing details of investments on the Cyprus Stock Exchange (CSE) before the parliamentary elections next month.
Centre-right DIKO responded by issuing its own details later yesterday. DISY released details of its CSE dealings on Monday, parliamentary spokesman Panayiotis Demetriou said. He said the party had not acted illegally by buying shares on private placement, although it had come under fire at the time.
“It was the opinion of some members that it was wrong, but these members were not able to say how we could face the party’s financial problems,” he said. “We carried out a completely legal action. We didn’t conceal anything or hide behind dummy companies. We made these investments in a straightforward manner.”
Demetriou added that there were other political parties, which had been hiding behind companies for years. “And if you ask them, they say they don’t have any businesses,” he said. “They are parties in capitalist businesses presenting themselves and pretending they are against this kind of behaviour.”
DIKO general secretary Andreas Angelides said yesterday that the party had discussed the issue on Tuesday night and would also release its details He also said the party had financial difficulties.
“It is a fact that the parties in Cyprus cannot function satisfactorily and even we are trying to limit our expenses to the bare minimum every month,” he said.
DISY’S STATEMENT
The party revealed that through its company Revolution, it purchased shares in Louis Cruise Lines through private placement in July 1999.
The 375,000 shares were bought at 40 cents each at total cost to the party of £150,000. They were purchased with a loan from Laiki Investments, the statement said. DISY was given 37,500 free warrants with the shares.
On December 17, 1999 when the Louis shares and rights split, the party had a total of 937,500 shares and 93,750 warrants.
Between December 27 and 29, 1999 Laiki Investments sold 238,638 shares for £700,564.89, which resulted in net takings of £695,310.60.
The party said £158,135.48 had been paid to Laiki to cover the loan, interest and handling fees, while £520,000 was paid towards a party loan from Laiki Bank and another £17,172.12 left with Laiki Investments.
“Today, Revolution has 698,862 shares from the original issue, 37,500 warrants from the rights issue last year and 93,750 warrant from the original investment.”
DIKO’S STATEMENT
In the framework of its policy on clarity on the parties’ financial activities, DIKO is releasing its investments on the CSE through MTE Investments Ltd., a company which was set up by members of the party in an attempt to support it financially, the statement said.
In June 1999, MTE Investments Ltd. purchased 375,000 shares in Louis Cruise Lines at 40 cents each by means of a loan of £154,372.20 from Laiki Investments using its shares as collateral. Along with the purchase of the shares, 37,500 free warrants were also given to the party. Since then and up until August 2000, MTE Investments Ltd. sold 15,000 shares before the split and 166,037 afterwards making a net amount of £345,013.56. It also sold 35,200 rights and made a net total of £24,208.79.
No further transaction has been carried out since August 2000, the statement said.
“The total amount received from the sale of shares and rights has been used towards DIKO’s obligations to banks, various creditors and to pay salaries and other operational costs of the party,” it added.
MTE still has 734,763 shares and 93,750 rights in Louis, which are still used as collateral for Laiki Investments. The rest of the loan to Laiki Investments on March 31 2001 came to £152,902.40 and the value of the shares and rights at the moment is £267,069.40.
DIKO considers that the setting up of MTE Investments was completely legal since the law allows for political parties to acquire property as long as they are able to cover its costs.
