TOP DIPLOMAT at the Presidential Palace Marios Ieronymides tendered his resignation yesterday following allegations of a conflict of interest in his relationship with the Chinese investor interested in turning the old Larnaca airport into a commercial centre.
The allegations claimed that Ieronymides benefitted personally from his ‘friendship’ with Yang Qi, sole shareholder of Far Eastern Phoenix (FEP), the company that signed a deal with Hermes Airports for a 19 year lease on the old airport.
Since the deal was signed, Far Eastern Phoenix has been in negotiations with the Cyprus government to extend the airport deal for a further 31 years. FEP wants to turn the old airport into a commercial centre, which would include a showroom and bonded facilities for Chinese industry.
On Wednesday, the Greek language daily newspaper Politis reported that Ieronymides was present at the signing of the agreement between Hermes and FEP. It also reported that his wife, Tatiana Ieronymides, was a co-director of the company from when it was created in April 2009 where she remained until March 2012. Politis reported that Tatiana Ieronymides resigned just six days before FEP signed the 19-year lease agreement with Hermes.
Yesterday, it was revealed in another Greek language newspaper “Phileleftheros” that Ieronymides was involved in another conference regarding the Chinese investment at the old Larnaca Airport.
Ieronymides denied the allegations saying that he only had the country’s best interests at heart in all his dealings with Chinese businessmen. He pointed out that when serving as Cypriot ambassador to China, the post he held prior to his appointment as Director of the President’s Diplomatic Office, he encouraged many Chinese investors and property buyers to come to Cyprus.
State broadcaster CyBC confirmed the newspapers’ allegations adding that Ieronymides briefed the President on the issue in a phone call late Thursday afternoon. He later submitted a memo giving explanations into the Chinese investment.
According to reports, President Christofias accepted Ieronymides’ resignation.
Far Eastern Phoenix is currently in negotiations with the Cyprus government to extend the airport deal for a further 31 years.