Friday, August 3, 2012 CYPRUS MAIL
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Semi-state organisations are not an ‘AKEL-ocracy’ By Elias Hazou NO MAJOR changes marked yesterday’s appointment by the Cabinet of the new boards of semi-governmental organisations (NGOs) – but whether the appointees keep their jobs beyond next March is another matter. By and large, the postings at the 16 SGOs amounted to the re-appointment of existing board members. One of the main exceptions was the appointment of new people chairing the boards of the Cyprus Theatre Organisation and the Wine Products Council. The chairmen at the following SGO’s were re-appointed: Cyprus State Fairs Authority, Ports Authority, Cyprus Telecommunications Authority, Cyprus Sports Organisation,
Cabinet appoints some new board members but most stay the same Cyprus Land Development Corporation, Cyprus Tourism Organisation, Cyprus Broadcasting Corporation, and Cyprus News Agency. But another battle for the SGOs – often described as dens of government nepotism – looms. In June, parliament passed a law – sponsored by main opposition DISY - limiting the term board members could serve to 30 months, with a possibility for a single reappointment. In addition, it stipulated that currently serving board members would be replaced in March 2013 – coinciding with the presidential elections. Currently, board members
serve 36-month terms. DISY argued the new arrangement would make it possible for an administration to work smoothly with SGOs that are appointed by it, without any remnants from previous boards who might be less than zealous in enforcing government policy. An administration’s term in office is five years, or 60 months. Under the DISY-inspired law, that would align perfectly with the 30-month term for SGO boards, times two. But the move drew an angry reaction from AKEL; the ruling party said DISY was manoeuvring to wrest total con-
trol of the SGOs should it win next year’s general elections. It said moreover that the new law would make it easier for DISY to achieve its longstanding ‘neo-liberal’ goal of ‘privatising’ and ‘selling out’ the SGOs. The President subsequently refused to sign the law, and has referred it to the Supreme Court. Speaking to newsmen after the Cabinet meeting ratifying the appointments, President Christofias dismissed the notion that so-called ‘AKEL-ocracy’ permeates the composition of the SGOs. However an apparent technical foul-up left the govern-
ment egg-faced yesterday. The lists of the new board members were released to reporters late in the afternoon. But in addition to this list, it appears that some media outlets were also sent the list of the previous boards. In one such list that Sigmalive got hold of, in addition to the names of the previous board members, the list identifies their political party affiliation – DISY, DIKO, EDEK, AKEL and so on. Moreover, the list of previous board members included comments next to some of the names. So, for example, one board member identified as an AKEL supporter is said to “not have shown interest for a long period of time, did not show up, but when needed he follows the party.” Other descriptions of persons included “positive,” “negative,” and “supportive.”
Co-ops resist changes to regulatory framework COOPERATIVE banks yesterday expressed their opposition to any changes in their regulatory framework, saying they implemented the same standards in place for commercial lenders. “…changing the institutional framework on which cooperative activity has been based, especially ideas to scrap the cooperative movement’s regulatory authority and auditing mechanisms, cannot be accepted,” a written statement said. “Besides, the cooperative credit sector implements corporate governance and the auditing standards are the same as the ones in the banking system.” The statement was issued after a meeting of cooperative officials who were briefed on the movement’s talks with the troika of international lenders. The issue of cooperative supervision was raised by the European Commission in its May 30 recommendations for the Cypriot econ-
omy. In its recommendation, the Commission does not appear to share the view of the cooperative movement. It says: “Harmonise the supervision of the cooperative credit societies in line with the standards applied for the commercial banks.” In its statement, the movement said it is a socioeconomic institution with “anthropocentric orientation” … “operating for more than 100 years on the basis of an institutional framework harmonised with international cooperative principles, the needs of Cypriot society, and the international obligations of the Cypriot state.” Its activity throughout time – especially the difficult periods – proved beneficial for the Cypriot economy and society in general, the statement said. “This is the reason why the Cypriot people put their trust in the cooperatives, raising them to the high level they are at.”
The issue of supervision was raised by the EU Commission in its Cyprus report
INVITATION TO SUBMIT BID FOR LIGHTING FIXTURES
PUBLICATION THE ADMINISTRATION OF ESTATE RULE 32
The Open Source Center (OSC) Nicosia is pleased to invite proposals for the modification of the existing Light Fixtures in their facility in Lakatamia, Nicosia.
Application No. 199/2012
IN THE DISTRICT COURT OF PAPHOS, PROBATE JURISDICTION GEORGIA VOGIATZIS, DECEASED
Interested bidders can visit OSC premises on Thursday 9 August 2012 from 09:00 to 12:00 hours to receive a detailed Scope of Work together with a drawing outlining requirements. All interested bidders will have to pre-register by 15:00 hours on 8 August, 2012 by contacting the Administrative section at telephone number 22362018. All proposals must be submitted in English in sealed envelopes. Deadline for accepting proposals will be from 10:00 - 12:00 hours on 23 August, 2012.
Notice is hereby given, that after the expiration of 8 days from the date of the present publication, an application will be lodged in the Principal Probate Registry of Paphos, for the probate of the will of the late GEORGIA VOGIATZIS of Greece to be given to Yiannis Papazacharia, Lawyer of Paphos. Yiannis Papazacharia Lawyer and Executor of the will Pallados1, 8046, Paphos tel: 26811362
‘Bulk of provident funds are in good shape’ By Poly Pantelides AROUND 15 pension and provident funds may be facing liquidity problems but most have no short term funding problems, the head of the supervising authority for pension and provident funds Theophanis Tryfonos said yesterday. Tryfonos has asked the various funds for data on high risk securities’ investments. He said he had been looking at the ability of semigovernmental bodies’ and local authorities to cope with liquidity demands in the short term. “Unfortunately there is no regulation provided for funds with 100 or fewer members,” Tryfonos said referring to a different legal status between small and large funds. Out of over 1,800 in total, the majority – reportedly about 1,500 – are not regulated by law, however, Tryfonos said he has asked them to hand over data “on a consultancy basis”. He said that though 14 of the smaller funds had invested a significant proportion of their capital into high risk securities, they were “very small” and created especially for executive councils or partners in companies, “which the law allows for”. One bigger fund belonging to a commercial company also invested 70 per cent of its capital into securities, though Tryfonos said it was not clear if that was a problem. But he said that most the 210 funds that invested in securities at a collective nominal value of €180 million did not face liquidity problems “at least in the short term”. Tryfonos declined to name any funds, just as he had four years ago when one fund invested €4.0 million in Lehman Brothers, which later filed for bankruptcy. Reports at the time said that the semi-governmental telecommunications authority (CyTA) lost €600,000 in investments for its pension fund. A year earlier, in 2007, a high-profile stockbroker was jailed for seven years for stealing millions from a pension fund belonging to the Electricity Authority of Cyprus. Collectively, around 15 semi-governmental funds have invested €73 million in high risk securities. But Tryfonos said that even though they were still analysing data it looked like “sensible management rules have been followed”. People can ask the executive body handling their fund to enumerate its investments, he said.