AN ONGOING Church crackdown on alleged widespread financial irregularities and embezzlement began in earnest yesterday, when the Holy Synod met with senior officials of the Hellenic Mining Corporation, of which the Church is the majority shareholder.
Meanwhile a probe has been launched into the finances of Church-owned businesses to investigate suspected fraud, and/or mismanagement; several of the Church’s interests are said to be incurring losses worth millions. Some argue that the financial irregularities have been worsened because of a lack of strong leadership, with the elderly Archbishop suffering from memory lapses and out of duty for months.
The Church probe is headed by a former Supreme Court judge.
Members of the Holy Synod met yesterday with Panos Galanos, CEO of the Hellenic Mining Corporation (HMC), one of the largest conglomerates on the island. There was speculation that Church leaders would instruct Galanos to ask for the resignation of directors sitting on the boards of companies.
Paphos Bishop Chrysostomos, who has initiated the crackdown, was cagey about what exactly was discussed behind closed doors, and neither denied nor confirmed whether the HMC would convene an extraordinary meeting of its board of directors.
But he denied press reports on widespread fraud, such as forging the Archbishop’s signature on bank cheques. According to one story, a senior officer in one company allegedly swindled the Church out of £800,000 in a pump-and-dump shares scam.
“Yes, there was embezzlement, but no, there was no forgery of the Archbishop’s signature; that information is inaccurate,” said Chrysostomos following the Synod meeting.
“But we did notice that several companies are in heavy loan, and that is cause for concern,” he conceded.
In a bid to show there would be no cover-up, as some quarters have suggested, Chrysostomos went on to stress “make no mistake; we shall spare no one… if any transgressions are established.
“The situation is now under control… we are on a sure footing, and all the members of the Synod were very satisfied with today’s briefing.”
Citing its sources, Alithia newspaper said yesterday the person suspected of the £800,000 scam contacted Chrysostomos and threatened to commit suicide if his name was revealed.
According to reports, the Paphos bishop has already consulted legal experts on whether the Synod can directly fire its directors on the boards of companies it has a stake in.
Last week, the Synod suspended two Archbishopric employees, who reportedly owe the Church a sum in excess of £1 million; both were relatives of the Primate. And on Saturday Chrysostomos met privately with HCM’s CEO Galanos and one of the directors Christodoulos Veniamin, a former Interior Minister.
Four out of HMC’s 11 directors are related to the Archbishop in some way, fuelling speculation that nepotism is the order of the day in Church appointments.
HMC is a consortium that includes the Hellenic Bank, a mining company, local beverage giants KEO and an IT company. The Church also owns Logos radio station, and is the largest landowner in Cyprus.
