Cyprus Mail
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AG handed findings of police probe into CBC

THE Attorney-general has been handed the findings of a police probe into various allegations of misconduct at the Central Bank of Cyprus.

“In the case regarding the Central Bank, the inquiries concerning the Central Bank, the file has been delivered to the Attorney-general with recommendations; he will decide its further handling,” police spokesman Andreas Angelides told newsmen on Tuesday.

He did not elaborate.

In October authorities launched a criminal investigation into a controversial agreement between the Central Bank of Cyprus (CBC) and financial consultants Alvarez & Marsal to pay them a 0.10 per cent fee on any amount needed to recapitalise the banks, including when cash was seized from depositors.

At the same time, deputy attorney-general Rikkos Erotocritou said the probe would also look into allegations by CBC governor Panicos Demetriades that confidential documents had been leaked to the media, but also potential document forgery, and deception of board members.

Erotocritou said the probe would cover the CBC board and the governor, and possibly third parties.

Allegations flying from the Central Bank relate to, among other things, Demetriades backdating a specific document (correspondence with the consultancy). The CBC chief in turn has charged the board with leaking confidential bank documents.

The deal between the CBC and A&M was initially assigned to the CID but it was later decided to hand it over to a task force already investigating the causes of the economic downfall – mainly the bank activities.

 

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