The information about findings that will cause a sensation in relation to the infamous investigation into the "Mafia State" has not only been confirmed, but is such that it shakes society's trust in the executive power and institutions.
The conclusion of the - lasting more than two years - investigation into the allegations recorded in the book, attributes possible criminal responsibilities against 15 persons, former officials and individuals, including the former President of the Republic, Nicos Anastasiades. He is subject to possible criminal liability for his decisions while he held the highest office of executive power in Cyprus.
However, from the reports of possible criminal liability, the cases of associates of the former President, as well as other officials such as a member of the Judiciary who is the former president of the District Court, Haris Solomonidis, the former Assistant Attorney General, Rikkos Erotokritou, the former Minister of Agriculture, Nikos Kougialis, the former head of the Unit for Combating Cover-Up Offenses, Eva Rossidou Papakyriakou, the former MP, Giorgos Varnavas and the senior officer of the Police, Ioannis Sotiriadis.
Up to 14 years
In general, the possible felonies identified in the investigation of the Independent Anti-Corruption Authority carry prison sentences of seven to 14 years in prison and fines of up to €500,000 in case of conviction. Even misdemeanors are such with a prison sentence of up to two years.
Indicatively, influence trading and abuse of power in case of conviction carries up to seven years, while money laundering carries up to 14 years and/or a fine of €500,000 (or both of these sentences together).
All the auditees
More specifically, Mr. Anastasiades is being investigated for (1) trafficking in influence in three cases, (2) the felony of abuse of power in one case and (3) abuse of power to the degree of a misdemeanor or attempted commission of a criminal offense in three cases.
Two other persons for whom there is a possibility of criminal liability are partners of Mr. Anastasiades in the law firm he founded. The reason for Stathis Lemis and Fanos Filippou. Both are being investigated in two cases for influence trading (up to seven years in prison) and money laundering (up to 14 years in prison).
In detail, the remaining 12 natural and legal persons (2) for which the Authority recommends that they be checked for offenses:
>> Nicos Chr. Anastasiadis & Associates Law Firm (influence trading and money laundering).
>> Rikkos Erotokritou, former Assistant Attorney General (misuse of power to the degree of a misdemeanor, in two cases).
>> Haris Solomonides – Former President of the District Court (Defamation of a public official, Transactions with representatives indicating corruption, Improper acquisition of property benefit in a total of three cases).
>> A. Neocleous & Co LLC (defamation of a public official, Transactions with representatives indicating corruption, active bribery of relevant public officials and Corporate Liability of a legal entity).
>> Panagiotis Neocleous (Conspiracy to overturn the course of justice).
>> Dmitry Rybolovlev (influence trading).
>> Andreas Hadjikyriakos (influence trading).
>> Efthymios Bouloutas (influence trading, money laundering, two cases).
>> Nikos Kougialis – Former Minister of Agriculture (Abuse of power-Misdemeanor).
>> Giorgos Varnavas – Former Member of Parliament (abuse of power – misdemeanor – or attempt to commit a criminal offense).
>> Eva Rossidou Papakyriakou – Former head of MOKAS (abuse of power – misdemeanor – or attempt to commit a criminal offense, neglect of official duty – two cases).
>> Ioannis Sotiriadis – Former senior police officer (abuse of power – misdemeanor).
Not all findings were published
>> The announcement of the conclusion was made public at 11:00 in the morning. This was preceded by a telephone briefing of Nicos Anastasiades by the head of the Authority and Commissioner for Transparency, Haris Pogiatzis. In cases of other persons involved, information was provided by e-mail.
>> The conclusion of the research, however, focuses on the main points that emerged from the work of the researchers. As noted in yesterday's announcement, the Anti-Corruption Authority "emphasizes the fact that other allegations made in the Book and not contained in this Announcement, mean that they have not been proven to the extent required".
>> In the initial stages of the announcement, the following is stated: "We understand the need for transparency and the desire of the 12 Society to have the opportunity to read the entire Report. However, given that the Final Report, which consists of almost 3,000 pages, in addition to the Minutes and Evidence, is witness material and will be sent to the Attorney General for his own actions, we believe that this confidentiality should continue to apply so as not to negatively affect any future investigative procedures."
>> We remind you that the investigation was launched at the beginning of 2023 (it was preceded by a complaint by the candidate for the Presidency of the Republic, Andreas Mavroyianis) and began in the spring of 2024. The cost of the research, based on our information, has reached at least €1.3 million.
Tax audit begins against seven former officials
>> The findings go to the Attorney General and Sotiris Markides
The conclusion of the investigation will be forwarded to two officials within the next few days. The final text of the inspectors Louise McIntyre, Charilaos Chrysanthou, Orestis Nikitas and Andreas Efthymiou, along with all the material of the testimonies, will be handed over to the Attorney General of the Republic, Giorgos Savvidis. The first official of the Legal Service will decide whether the findings and testimonies are enough to bring the 15 natural and legal persons to justice.
The conclusion of the investigation, which is summarized in about four box files, will be given to the Commissioner of Taxation, Sotiris Markidis.
We remind you that the latter, following a proposal for a Law approved by the previous scheme of the House of Representatives, will check all officials for whom possible criminal responsibilities have arisen. In other words, a tax audit is now beginning for Nicos Anastasiades, Rikkos Erotokritou, Haris Solomonidis, Nikos Kougialis, Giorgos Varnavas, Eva Rossidou Papakyriakou and Ioannis Sotiriadis.
We remind you that the rapporteur for the legislation was MP Irini Charalambidou. The draft Law provided for "the establishment of an obligation for the Independent Anti-Corruption Authority, in case its report demonstrates the involvement of an official in the possible commission of corruption offenses, to inform the Tax Commissioner to carry out a tax audit under the provisions of the relevant legislation".
Already in the legislation governing the operation of the Authority, as we wrote yesterday, it has been added to Article 14 that "in the event that the Authority, in the exercise of its responsibilities, finds the involvement of an official or public official in the possible commission of a corruption offense, it prepares a relevant report and submits it to the Tax Commissioner, together with the necessary information and/or data in its possession, to the extent that these are necessary for the exercise of his legal powers and responsibilities".
According to the definition of the Law, an official is also considered to be the person who previously held the office or position of a public official.
Regarding the entire investigation that will be forwarded to the Attorney General, the question has been raised as to whether the two senior officials of the Legal Service should request an exemption from the process of evaluating the testimony material. Giorgos Savvidis and Savvas Angelidis were appointed by Nicos Anastasiades as members of the Council of Ministers and by extension there is an issue of impartiality. The issue was also raised by reputable lawyers. In fact, Nicos Anastasiades himself in his written statement yesterday stated that he has nothing to fear and suggested that Savvidis and Angelidis be excluded from the evaluation process.
The colour of money dominates the seven hypotheses
The possible offenses recorded in the conclusion of the Independent Anti-Corruption Authority for the allegations made in the book "Mafia State" concern a total of seven cases. They all have one thing in common. Allegations of financial interests. We summarize them by citing findings of the inspection officers of the research body:
The case with Solomonides
The three offenses for which the Independent Anti-Corruption Authority recommends that the President of the District Court, Haris Solomonides, the law firm "Andreas Neocleous & Co LLC" and the lawyer Panagiotis Neocleous, be investigated, concern the case that arose on the basis of the allegations made in the book of Makarios Drousiotis about Rybolovlev's divorce. Drousiotis refers to a family property dispute between the multimillionaire and his estranged wife. The latter was said to be claiming £4.5 billion from the family estate. Drousiotis cites, as stated in the announcement of the conclusion, "a series of alleged facts, which raise suspicions that two court cases were deliberately brought before Judge Mr. Solomonidis, so that the latter issued decrees and decisions in favour of the interests of Mr. Rybolovlev". He related, in fact, the time proximity between the issuance of favourable decisions and decrees and the employment of the wife of the Judge in question in a company that was connected with the Law Firm Andreas Neocleous & Co LLC, which represented the interests of Mr. Rybolovlev. The Authority notes that "on the basis of the testimony submitted, the Inspectors conclude, on the basis of the balance of probabilities, that there are sufficient indications which create a reasonable suspicion that the former President of the Nicosia District Court, Mr. Haris Solomonides, by abuse or exploitation of his judicial office, agreed with the Law Firm of Andreas Neocleous & Co LLC to employ his wife in the said Law Firm, in exchange for the issuance by the Judge of decisions in favor of the clients of Andreas Neocleous & Co Law Firm, in the context of the Inaugural applications no. 2092/2013 and 2125/2013".
Arrest of Rybolovleva
Drousiotis' allegations refer to the arrest (24/2/2014) of Rybolovleva when she came to Cyprus. He claimed that persons related to Mr. Rybolovlev, in cooperation with lawyers and other persons in Cyprus, allegedly took actions to trap and prosecute Ms. Rybolovleva, on the basis of a complaint to the Police by Panagiotis Neocleous, on behalf of a specific trust, regarding a precious jewel of great value. These actions allegedly included coordination, as well as continuous information regarding the course of the operation, with state officials and the Police. After summarizing the findings of the investigating officials, it is added that there are sufficient indications of acts of corruption. It is indicative that for Andreas Hadjikyriakos it is stated that "he was the link between the former President Mr. Anastasiades and Mr. Rybolovlev, he was involved in the coordination of the support or the apparent support of the state authorities and officials involved in the plan to arrest Ms. Rybolovleva". In essence, it is stated that there are indications that there may be offenses against Mr. Hadjikyriakos, Dmitry Rybolovlev, Nikos Anastasiades (influence trading), Rikkos Erotokritou and the former senior police officer, Ioannis Sotiriadis (misdemeanor abuse of power).
State land in Archdiocese
In the conclusion, the inspectors accuse the former Minister of Agriculture, Nikos Kougialis, of a possible act of corruption and specifically a possible misdemeanor of abuse of power, for a case with state land granted to the Archdiocese. Among other things, the report records the history of the case. The state had expropriated land (Engomi) of the Archdiocese and the latter had asked for land in Ayia Napa that was given to it in return, although according to Drousiotis this was illegal. The plots received by the Archdiocese had a listed value of €5,712,000, however, according to the researchers, "from the later data of the Land Registry it emerged that the eight plots that were finally transferred to the Archdiocese had, based on the general estimate of 2013, a value of €10,638,300". Mr. Kougialis, yesterday's announcement notes, "as a member of the Commission (...) participated in the proposal for approval of the concession. The Inspectors considered that, by supporting the recommendation without ensuring that the value of the land and the 'exceptional' treatment were duly justified, he may have exercised his authority in an arbitrary manner." There was no testimony that the former Minister had a financial benefit.
Case with Focus
One of the chapters investigated concerns the allegations that Andreas Vgenopoulos, who controlled Laiki Bank, financed political parties and persons of power or influence through money from the financial institution, using Focus Maritime. In this chapter of his book, Drousiotis records money routes through companies. The inspectors, although they rejected allegations, including the one about the direct financial benefit of Mr. Anastasiades, nevertheless considered that "there is a possibility of committing the crime of abuse of power. This finding is based on the testimony that, while the investigation of the Focus Maritime case was ongoing, he met and contacted the then Attorney General Mr. Costas Clerides by phone, expressing strong dissatisfaction with the course of the investigation and requesting the termination of investigations, on the grounds that no criminal offenses had been identified." For the same case, there is a finding for the possible commission of the misdemeanor of abuse of power against the then Assistant Attorney General, Rikkos Erotokritou, because "he intervened in the police investigation of the Focus Maritime case, requesting that the original evidence related to the financing of political parties by Focus be handed over to him and giving instructions that the investigators not to keep copies".
Kickbacks from banks
The inspectors also investigated Drousiotis' claim of tax evasion by Nicos Anastasiades and the law firm of his family's interests through undeclared income from commissions he received from Cypriot banks, for the referral of customers to them. The investigators concluded on the basis of their findings that "at the end of 2011, the Inspectorates found, on the balance of probabilities, that a transaction of €250,000 was carried out by Laiki Bank for the benefit of Mr. Anastasiades, which was allegedly intended as financial support for his 2013 election campaign and was misleadingly presented as a fee or commission." For this case, in fact, they conclude that Nikos Anastasiadis, Efthymios Bouloutas, Stathis Lemis, Fanos Filippou and the law firm of the latter's interests (Nikos Chr. Anastasiades and partners) should be checked for the crime of influence trading. For the last three, it is reported that they have potential responsibilities for the crime of money laundering. Finally, it is stated that for the "Nikos Chr. Anastasiades & Partners (...) raise reasonable suspicions of tax evasion and false declarations."
Money laundering
The investigation also touched on the allegation of money laundering by the former President and the law firm he founded, through offshore shell companies and concealment of the real beneficiaries, as well as misleading statements about non-active participation in the Law Firm after 1997. The allegation was analyzed in two sections on the basis of publications by an equal number of journalistic networks, the OCCRP (14/8/2019) and the ICIJ (3/10/21).
At the time, Mr. Anastasiades had said that he had been a silent shareholder in his office since 1997 when he was elected president of DISY. "However", as stated in the findings of the inspection officers, "evidence shows that until his resignation as general partner on 26/02/2013, he maintained an active role in the law firm". Anastasiades then called on the head of MOKAS, Eva Rossidou Papakyriakou to investigate the OCCRP's allegations. The head of MOKAS, after the investigation, announced that "nothing reprehensible" came to light. Based on the findings of the investigation, the Authority concludes that Anastasiades took advantage of his power (call for an investigation by MOKAS) in a way that may indicate that he committed the misdemeanor of abuse of power. The same applies to Ms. Rossidou Papakyriakou, for whom it is previously recorded in the report that she did an incomplete investigation, that she proceeded with it after Anastasiades' statement, even though she had previously been informed and that she issued a statement without this being provided. For the then head of MOKAS, it is also stated that neglect of official duty should be examined.
In relation to the second section, it had to do with the ICIJ article on the Pandora Papers and the activities of the Nikos Chr. Anastasiades & Partners. Mr. Anastasiades is said to have served through his office the naturalized Lebedev and Abramov. At that time, "he personally met with the then Minister of the Interior regarding the progress of Mr. Abramov's naturalization file." It is recorded that the client received a passport and that naturalizations of members of the investor's family followed. For the case there were reports of omissions in the naturalization in question. The Partners of the Law Firm Nikos Chr. Anastasiades & Partners were actively involved in the concealment of the true nature of offshore funds and the identity of the ultimate beneficiaries. In particular, Mr. Filippou has submitted a false affidavit while at the same time acting in a role related to the applicant's assets." The findings record that "based on the evidence, it appears that Mr. Nicos Anastasiades was continuously personally involved, prior to his election as President of the Republic, in the interests of the Law Firm's clients, which raises serious concerns about the overstepping of institutional competence and the inappropriate use of political influence." They result in possible criminal offenses on the part of Anastasiades (abuse of power or attempted abuse of power and influence trading) and for Stathis Lemis and Fanos Filippou (perjury, money laundering).
Dromolaxia Property
The latest case recorded in the report concerns possible criminal responsibilities for Nicos Anastasiades and former MP Giorgos Varnavas. For both of them, it is noted - among other things - that there may be an abuse of power to the degree of a misdemeanor. In this case, the following allegation was investigated: "Unfair interference by Mr. Nicos Anastasiades who, as President of the Republic, tried to promote the interests of a private company for the exploitation of a Property in Dromolaxia ("the Property"). In this effort, he intervened in various bodies, while he also recruited political figures. The interests of the private company were represented and promoted by the then MP Mr. Giorgos Varnavas, who, allegedly, also made unfair interventions." The ownership of the property was claimed by Suzanne Dikraz, a Turkish national, denying that it was a Waqf and having signed an agreement for its development with a private company. The agreement did not go ahead due to the legislation and there were meetings of officials on the issue. It was considered that Anastasiades and Varnavas had an illegitimate role in them. It is recorded, among other things, that they promoted the interests of the private company. For Anastasiades, it is clarified that "his interventions were well-intentioned". In the end, the attempts to register the Rental Agreement were unsuccessful.
He asks for the exception of Savvidis and Angelidis Anastasiadis"Drousiotis' allegations have collapsed"
The news from yesterday's official position of the former President of the Republic, Nicos Anastasiades, is his position on the exclusion of the Attorney General, Giorgos Savvidis and the Assistant Attorney General, Savvas Angelidis, from the process of any criminal investigations. It is obvious that Mr. Anastasiades wanted with this reference that he has nothing to fear. He did not fail to express dissatisfaction because, as he claims, what is attributed to him by the investigators, not only is not included in the "Mafia State", but was not even brought before him to give him the right of defense.
The position of the former President of the Republic under the title "Drousiotis' allegations have collapsed" is as follows:
"After studying the conclusion of the Anti-Corruption Authority, I would like to mention the following as first comments:
(a) The allegations of enrichment, corruption and a host of other slanderous reports by Mr. Makarios Drousiotis, collapsed as unsubstantiated.
(b) Most of the accusations attributed by the investigating officers and the Anti-Corruption Authority, not only are not included in the allegations under investigation recorded in Mr. Drousiotis' book, but were also never brought before me during the investigative process, so that I could be given the opportunity to submit the appropriate answers in a documented manner.
(c) Both for the allegations of Mr. Drousiotis, and for the unsubstantiated nature of the accusations, I will give answers with evidence at a press conference in the next few days.
(d) I declare that I categorically deny the offenses attributed and request the immediate investigation by the competent authorities. In order to remove any well-intentioned or malicious suspicion, I request the exclusion from the supervision of the investigations of the Attorney General and the Assistant Attorney General, so that with documentation the unfounded of what is attributed to me can be demonstrated."
