Two more arrests in Ayia Fyla loan scam

TWO more persons were arrested on Thursday in connection with the loans swindle case at the now-defunct Ayia Fyla cooperative bank.

The two suspects– aged 65 and 66 – both hail from Limassol. They were expected to appear in court on Friday, where police would request that they be remanded in custody.

Police sources said the two are former co-op officials suspected of taking bribes in exchange for approving loans without adequate collateral. The sources did not rule out further arrests.

The case concerns the approval of 22 loans worth €9.5m that were given by the co-op bank to a 54-year-old businessman’s business and personal accounts between 2006 and 2009 without the required collateral. The irregularities were reported to police in March this year after the findings of an internal audit at the co-op were forwarded to the Legal Service.

Five persons are currently in custody, while the businessman’s 49-year-old accountant is wanted by police. She is believed to have fled abroad.

 

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