Cabinet calls for criminal investigation into Co-op scam

By Alex Mita

THE CABINET yesterday called for the appointment of a criminal investigator be the Attorney-general’s office to probe a Paphos Co-op bank scam that saw companies evading mortgage fees on loans by illegally registering as members of the bank.

Speaking after yesterday’s meeting, Commerce and Industry Minister Nicos Rolandis said the nature of the case suggested there was a possibility that a criminal offence had been committed.

“The Cabinet’s intention is to have a criminal investigator appointed to the case as soon as possible, because from what our sources tell us a criminal offence might have been committed,” he said.

Interior Minister Andreas Panayiotou said the government was currently investigating 28 cases of companies receiving loans from the Paphos Co-op totalling £2 million.

Panayiotou said the companies had avoided paying mortgage fees on the loans by illegally registering as members of the Co-op bank.

“The amount of money owed to the Land Registry Department from those loans amount to £25,000,” he told reporters yesterday.

“We are in close contact with the Attorney-general and we will claim the outstanding amount back.”

Panayiotou said he would decide on the fate of government officials allegedly involved in the case, after he heard the findings of the ongoing disciplinary investigation at the end of the week.

Meanwhile, DIKO deputy Marios Matsakis said yesterday that Paphos Co-op chairman and fellow DIKO deputy Nicos Pittokopitis should resign.

“I can’t tell my associate what to do, it’s not my job and I don’t want to judge anyone,” he told CyBC radio.

“The only thing I can say is that if I were in his shoes the wisest thing for me to do would be to resign as chairman of the Paphos Co-op Bank,” he said.

Asked whether he thought Pittokopitis should also hand in his resignation to DIKO, Matsakis said it was too early to say.

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