THE ISLAND’S civil courts are being undermined by extra-judicial rings using violence and threats to settle financial disputes, the House Finance Committee heard yesterday.
The revelation was made by Attorney-general Petros Clerides and DISY’s Ionas Nicolaou, during discussions on the budget for the Legal Services.
Deputies heard that there had been a 33 per cent reduction in civil court cases due to more people turning to private debt collectors who were running their own “courts”, which were using the threat of violence as an incentive to resolve financial disputes.
AG Clerides admitted there were “extrajudicial rings” operating in Cyprus, settling affairs out of court but using unlawful means such as blackmail and threats.
He said he had received details on two such cases, which he referred to the police. “There was a positive outcome,” he said.
Clerides called on members of the public who might fall victim to the rings to report immediately to the police.
Speaking after the meeting, DISY’s Nicolaou told reporters that these rings had organised offices, which collected civil debts under threat.
“In some cases, these so-called offices act as intermediates in the resolution of civil differences too,” he said.
Explaining how it worked, Nicolaou said two people with financial differences would go to these offices and in the presence of their lawyers, present their case. A “judge” then decides what the settlement will be.
This, said Nicolaou, was all going on under the nose of the state, which was turning a blind eye.
Nicolaou said one of the main reasons the rings were so active was the delay in civil cases reaching the courts and the subsequent delays in executing civil judgements.
He said that in the first eight months of this year, uncollected fines totalled €142,000.
He added that cases involving debts of up to €5,000 were no longer being lodged in court as the procedure was too time-consuming and the legal costs too high for many people.
“All this has contributed to the appearance of this extrajudicial system, which is operating in parallel with our courts,” said Nicolaou.
AKEL MP Yiannakis Thoma also said the weaknesses in the judicial system had led to the extrajudicial rings. “It is an existing fact and a ticking time-bomb under the foundations of Cypriot justice,” said Thoma, who called on immediate measures to combat the activity.
