By Angelos Anastasiou
THE Cooperative Central Bank (CCB) has furnished the police with evidence relating to dozens of suspicious loans taken out by former officials from the co-operative network, local media reported on Friday.
According to online news portal Sigmalive, CCB chairman Nicolas Hadjiyiannis said the effort to purge the co-operative network and punish those who have harmed it has intensified.
Shortly before noon, the website said, Hadjiyiannis, along with the Strovolos co-operative branch (SPE Strovolou) head, and a “well-known lawyer”, arrived at police headquarters in order to give a statement relating to banking offences.
The evidence was the result of a month-long investigation by a law firm, following reports of corruption by former and current top-level officials at SPE Strovolou, which seems to have uncovered serious offences.
Police spokesman Andreas Angelides confirmed the story later on Friday, saying the police will investigate the claims to establish whether any wrongdoing can be evidenced.
“There has been a statement that an internal audit at a co-operative credit institution revealed irregularities relating to loans paid out,” Angelides said.
“We will proceed to fully investigate the issue, in order to establish whether any criminal offences have been perpetrated,” he added.
The police spokesman said Friday’s allegations will be examined in connection with an earlier case under investigation by the police – specifically, the team of investigators looking into Cyprus’ economic meltdown.
In a statement, the CCB board said its earlier pledge to “hold those who have harmed the co-operative network accountable” is being implemented through specific actions and initiatives.
“Acknowledging its role and responsibility before its thousands of members and customers, the Co-operative Central Bank implements a decisive and consistent policy of rooting out corruption,” the CCB said.
“We consider our decision a necessary prerequisite, and part of the broader effort that must be made, in order to achieve the goal of fully restoring society’s trust towards the banking system.”
