Vasilikon cement factory workers return to work

EMPLOYEES at Vassilikos cement company will return to work today, after a meeting was held yesterday at the labour ministry.

During the meeting, Labour Minister, Sotiroulla Charalambous put forward a mediation proposal concerning the renewal of their collective agreement.

The cement factory employees went on indefinite strike over their collective agreement on March 1, saying that it was not being observed. A few days later concrete makers said they were halting work because they had no cement left.

“The labour ministry has submitted the outline of [a number of] proposals with a view to renewing the branch’s collective agreement,” said Charalambous.

After dialogue with both sides the company said that it respected the labour relations code and the collective agreement, she added.

According to Charalambous, over the next few days she will submit her final recommendations. “The employees’ representatives will submit the proposals at a general meeting of its employees today and as I have said over the next few days I will submit my final suggestions on the renewal of [their] collective agreement,” said Charalambous.

Cabinet reshuffle after finance minister quits

THE COMMUNIST-LED Cyprus government underwent a mini reshuffle on Monday with banker Vassos Shiarly replacing Kikis Kazamias as finance minister, whose resignation on health grounds was announced on Friday, while the outgoing trade and energy minister fired a parting shot saying she was often undermined.

President Demetris Christofias replaced Commerce and Industry Minister Praxoulla Antoniadou with Neoclis Sylikiotis, until now Interior Minister. The portfolio is responsible for administering natural gas reserves recently discovered off Cyprus.

Antoniadou refuted the government spokesman that she had resigned earlier this month, saying in a statement that the president’s advisors misled him.

She added that members of the cabinet and other technocrats has pressed her “to follow different policies to those indicated by the President … on issues such as golf courses, relations with (natural gas explorer) Noble Energy, photovoltaic parks and a hostility towards (public power utility) EAC.”

Antoniadou said that she was working under extremely difficult circumstances at a ministry that needs to undergo major changes and that she was left to work on her own without the necessary number of expert assistants.

Sylikiotis is replaced at the Interior Ministry by Eleni Mavrou, former mayor of the capital Nicosia.

Taking over at the Finance Ministry is Shiarly, 64, an accountant and until last year the group chief general manager at Bank of Cyprus in charge of branch networks.

With regulators he will have to oversee recapitalisation efforts of the island’s two largest banks, including his former employers, which are heavily exposed to Greek sovereign debt.

Moody’s rating agency last week followed Standard and Poor’s in downgrading Cyprus’s sovereign debt to junk, saying there was a heightened risk the government would have to prop up the banks.

Cyprus itself has been shut out of debt markets since May 2011, and averted a bailout after receiving a €2.5 billion loan from Russia.

The resignation of Kazamias removes the one known ally of central bank governor Athanasios Orphanides, a member of the European Central Bank’s Governing Council. The government is due to decide by April 30 whether to reappoint Orphanides, whom Kazamias publicly defended on several occasions over the island’s exposure to Greek debt.

Press reports suggest that the government is leaning towards Leicester University economics professor Panicos Demetriades.

Paphos homes in danger of collapse after heavy rain

A RECENTLY built six house estate in Armou near Paphos is in imminent danger of collapse after it was constructed on land locals had long been warned was unsafe.

The development looks like an earthquake has struck. All of the houses show serious structural problems, from slanting floors, to the partial collapse of stairs, walls, swimming pools and patio areas. Outside drains are now exposed in one garden and retaining walls have been split apart.

Two of the access roads to the development are currently impassable with giant gaps in both, and huge pieces of tarmac have been dislodged. The third is barely useable, and may also be out of action at any time.

And just one more week of rain could see the homes falling down completely according to the president of Paphos’ architects and civil engineers association, Chrysostomos Italos.

“I have been to see these residents about six times, I feel very sorry for them. If there is rain for a week then everything could collapse,” said Italos who is carrying out a report into the damage.

“If the rain stops, their homes will be safe – for now.”

“Our dream has turned into a living nightmare,” said one worried homeowner Geoff Higgs who contacted the Sunday Mail in desperation after appeals to government authorities went unheard.

Despite appearances to the contrary, the sudden subsidence hasn’t been caused by an earthquake. According to three of the four British homeowners at the site, it’s debatable whether the land was fit to build on at all with all of the homes experiencing structural problems for a number of years.

But the recent spate of bad weather and a regular water leak in the area have compounded the damage leaving residents concerned for the future of their homes, their own safety and the financial impact.

Tragically for the residents, it appears as if the area where their houses were built, just below the church in the picturesque village, was well-known among locals as being unsafe.

“Everyone in the village knows that below the church isn’t a safe place to build. When I was a small boy, I was told to be careful of this area and not to go there in bad weather,” said Armou mukhtar, Panikos Hadjitheoris.

Italos says he was approached by a number of the home owners to prepare a report, which he says will be completed next week.

“The area where the houses have been constructed is at the bottom of the village of Armou and it is of soft clay. I don’t know if the initial design was correct, how it was designed, and if all of the correct investigations were carried out. I presume it was built correctly, but I don’t know,” he said.

“Initial estimations should have taken into account if there was any danger posed by the surrounding area, not just the spot where the houses were constructed.”

He added that he has warned residents to keep an eye on the movement and if it speeds up they should leave their properties for their own safety.

Simon Phillips bought his house in June 2008. Just four years later, his garden, pool area and exterior retaining walls are now covered by a maze of gaping holes and wide cracks. He is fearful for the safety of his wife and two daughters, aged 10 and 12.

“In Feb 2010 there was some movement, but nothing as drastic as this,” he said.

Phillips says that builders have done some cosmetic repairs, but with the recent series of water leaks in the road, combined with heavy rains, the movement over the last couple of weeks has been “ridiculous”.

“I’ve got gaps of more than a foot wide with two metre drops outside; I’ve got open drains and open cesspits. I feel unstable and the stress factor and the disappointment are overwhelming,” he said.

“All of the damage here has happened very quickly and every day we are measuring the gaps which are getting bigger and bigger.”

Higgs said that JNM, the local company, has been uncommunicative and unhelpful.

“The developer came up here and had a look around. He is difficult to get hold of and doesn’t react. He doesn’t do anything.”

Repeated calls to JNM by the Sunday Mail to speak to the company’s director were not returned.

Higgs and his wife took delivery of their ‘dream home’ seven and a half years ago. He says JNM were late completing his house but that was just the start of the problems.

“The road was completed only last year, and the authorities and the developer are now in disagreement as to who has responsibility for the road,” he said.

A water pipe which runs under the road is continuously leaking due to the movement of the land and this is compounding the problem for the development of houses which are built below.

“This water leak first happened a few years ago. The land is moving and pulls the pipe apart and now there is another split further down.”

“The area and our homes look like they’ve been under a mortar attack,” he said.

“My wife is in a real state. This is our retirement destroyed. They’ve taken our home, our money, our kids’ inheritance and they don’t seem to care.”

Hadjitheoris, the mukhtar of Armou for the past five years, said he felt very sorry for the residents and is doing what he can to help. The stricken development was built before he took office.

“These people put their trust in their lawyers and advisers. If they had asked anyone in the village or the local council, they would’ve been told that the area wasn’t safe. I feel very sorry for them.”

According to the mukhtar, there are two or three leaks from the water pipe every day.

“We keep spending village money to repair them. We are looking at solutions to resolve this problem, such as using different pipes.”

He said the estate was giving Armou an unwarranted bad name as it was only the small area below the church which was unstable and the rest of the village was safe to build on.

“I don’t think anything should’ve been built on this area and I believe further studies and investigations should’ve been carried out before any building commenced,” Hadjitheoris said.

The community chief met with the developer in his office in February, following a meeting with the district office which he says are aware of the situation.

“I told him to go to the district office himself and find a solution, which he promised to do.”

Graham Slyper, another resident, who owns a four bedroom house, has seen movement since last year but he says the problem has become far worse in the last couple of months.

“Underneath the pool there is a rear retaining wall with a drop down the other side of about 2.5 metres and the crack is now open by 26 cm. As a consequence, it’s now hollow underneath and the earth is running away every time there is rain.”

The UK-based chartered surveyor said, “We didn’t know at the time, but it seems as if the land should never have been built on. The house is on piles but everything around it isn’t. In particular the front and back retaining walls need to be piled. If that could be done, the development could be stabilised.”

The houses behind the development further up the hillside have also been experiencing problems in recent days.

“They came to see us on Sunday as their gardens are now slipping. If nothing is done, everything above us will come down in this direction.”

Italos said further investigations of the area needed to be carried out.

“There are some ways in which this development can be saved. Specific investigations need to be done, followed by special structures which could be erected, such as supports like piles,” he said. “Who will pay for these I really don’t know.”

A number of the homeowners have issued court proceedings against the developer.

Editor’s comment

GIVEN Cyprus’ long experience of landslides and having to move whole villages to new locations, you would think that the law would prohibit the construction of property on unstable land. Unfortunately, this is not the case!

Problematic villages in Paphos include Agios Photios and Statos, Choletria, Theletra, Episkopi, Marathounda and Armou. Following devastating landslips at Agios Photios and Statos, the Government moved both villages to a new location. Choetria & Theletra villages were also relocated after suffering similar disasters.

In 2006 heavy rains caused major problems in Paphos including the flooding of properties, flash floods, mudslides, traffic chaos and power cuts. A couple died when their car was swept off what appeared to be a badly-constructed bridge.

At that time, one local estate agent said the main problem was caused by developers building on unsuitable sites. “They buy cheap land on ravines, with water running through developments, and many buildings are not properly elevated from the road. Mass constructions also cause excess mud and dust to get onto the roads in large quantities, which cause traffic problems,” he explained.

Almost one in four properties are co-owned

A NEW BILL was submitted to Parliament in January that is designed to overcome problems with the division and distribution of co-owned property in which one or more of the co-owners refuses to co-operate.

This situation is quite common in Cyprus with plots of land owned by members of the same family in which one of the family wishes to sell their share, but the others refuse. The new bill seeks to resolve this situation by giving the Directors of Land Registries additional powers.

Assuming that the bill becomes law, it will enable the Directors to decide on the division and distribution of a property in cases where one or more of its co-owners refuses to co-operate without reasonable justification.

The House Interior Committee, which is examining the bill, recently received information on the extent of the problem.

Ionas Nicolaou MP said that 24% of the plots in Cyprus (approximately 274,000) are co-owned. Of these 49% (approximately 134,260) are in the district of Famagusta. But as there is no agreement between the co-owners as to how the plots should be divided and distributed, Title Deeds cannot be issued even though contracts of sale for their purchase have been deposited at the Land Registry.

Mr. Nicolaou said that the House has asked the Legal Department and the Land Registry to examine the involvement of the judiciary, so that the matter may be settled.

Moody’s downgrades three Cyprus banks again

MOODY’S Investors Service has downgraded the rating of the Bank of Cyprus by two notches from Ba2 to B1 with a negative outlook, and cut the ratings of the Marfin Popular Bank and the Hellenic Bank by one notch from B2 to B3, both with a negative outlook.

In its press release issued earlier today, Moody’s said that the downgrades reflected the combined pressures on the banks’ standalone credit profiles from the following factors:

  1. The crystallisation of losses on banks’ holdings of Greek government bonds (GGBs) after Greece’s debt exchange, requiring an increase in the banks’ capital to bring their core Tier 1 ratios back up to the domestic regulatory minimum level of 8% and to cover the shortfall indicated by the 9% stress test target of the European Banking Authority (EBA).
  2. An acceleration in problem loan formation in 2011 and Moody’s expectation of continued severe asset-quality pressure from the weak operating environments in Cyprus and Greece, Cypriot banks’ two main markets, leading to higher loan loss provisions.
  3. The weakening funding and liquidity positions, which are the result of deposit outflows which in turn have triggered an increased reliance on central bank funding for some banks.
  4. Moody’s expectation that declining business volumes will pressure pre-provision profitability, thereby weakening internal loss-absorption capacity.

Moody’s said that today’s rating actions conclude the review for downgrade initiated on 8 November 2011.

Further reading

Rating Action: Moody’s downgrades three Cypriot banks and concludes review

Vanishing Cyprus: consumerism

UNREGULATED globalization driven by an unquenchable thirst for consumerism can be considered as one of the many contributing factors to the ravaging socio-economic turmoil of modern times.

The gap between the “haves” and the have “nots” has become so great mankind will have an upright struggle to ever recover from its effect.

At the fringes of utter affluence lay utter poverty, hopelessness and desperation. Poverty, a stigma of modern society is on the increase. Fundamentally, poverty is a denial of choices and opportunities to earn a decent income for a modest standard of living. In complete violation of human dignity and self-esteem, today, there are about 1.7 billion people today, who live in absolute poverty. If that’s not bad enough, the most shocking part of it all, six million children die each year from hunger; an appalling record of world-governments’ failure to eradicate such disgrace on humanity!

Yet, in accordance with the United Nations (World Food Program, January 2012) the world produces enough food to feed everyone and could feed double the world population, which is estimated to reach 10.5 billion people by the year 2050 (US Census Bureau). It also claims that every country in the world has sufficient capacity to feed its own people, but the “free trade” economic order associated with such institutions as the International Monetary Fund (IMF) and the World Bank (WB) prevents this from happening.

Without exceptions, the European Union (EU) – a monetary driven institution – has also been a notorious advocate of unfair economic practices. Misguidedly, it pursues a policy forcing small EU farmers (the backbone of nations) to uproot and destroy crops with cash handouts as compensation. In fact, the main purpose of this directive it’s to maintain prices of goods at a certain level so as not to reduce profit margins; for bumper crop production means cheaper foods to the consumer and that goes against the grain of a corporate profit-driven philosophy.

At the taxpayer’s expense, government subsidies and protectionist quotas have become an irrevocable part of trade practices rather than to apply competitive market principles. Many will argue that this kind of practice causes unfair competition at the expense of poorer nations struggling to compete against wealthy nations. That is certainly true! Ultimately, those poor nations become dependant on imports from rich countries rather than be given the opportunity to boost their export markets so as to shore up their own economies and rise above poverty.

At the very heart of this dastardly practice lie the banking institutions, stock markets and speculators driven by an insatiable demand for profits. They often release false rumours of impending “shortages” to generate a global frenzy in order to push up the prices of grain, crops and other goods and commodities. Hording is another common practice used by large producers to instil “food shortage fears” at the expense of trapped consumers.

That is the ugly face of an unbridled and unregulated global capitalism; a system enwrapped in spin, speculation and market manipulation on a worldwide scale while the consumer remains a captive victim of a ruthless system in the name of profit and greed.

Global problems have now become local problems. In the pursuit for instant indulgence brought about by easy consumer credit access, the system has created a financial monster. Others will simply call it “progress”! In fact, there is a public perception that the banking institutions and supra-national corporations have pioneered this social reliance on credit simply to monopolize and dominate markets globally.

A few years back those same banking institutions strategically initiated massive campaigns to convince the public with the presumption that banks are their friends. To shape the masses into a new type of global consumer dependent on credit, banks had developed a policy of mailing out millions of free credit cards to anyone. Those entrapments worked wonders and have successfully managed to transform peoples’ social purchasing behaviour, from one of thriftiness to a debtocracy; the banks today control every breath we take!

Plato in his time also recognized that money lending was a sly profession practised by men motivated by greed. He stated: “If loans were made at the lender’s risk, there would be a good deal less shameless money making”. Those words are as true in today’s society as they were then; debtocracy has become part of everyday life!

The notion that “people are born free and die slaves” has become a reality. Most people today, are enslaved by debt till death and beyond! The master plan of absolute control of a new social order by the selective few – mainly the banking establishment – has been a tremendous success; banks today control entire nations! Due to globalization, faceless foreign bankers now dictate domestic policies of nations and intervene in the democratic process of those countries. Greece is a good example of foreign financial subjugation, while Argentina dared and told foreign banks: “Enough is enough!” and threw them out; she never looked back!

Obviously, like all other businesses banking has its purpose and they certainly have an important role to play, but allowing them to determine the terms and conditions at the expense of the masses is madness.  In a true democratic system, these institutions should be held accountable like all other businesses, yet they receive preferential treatment by governments who bail them out in turbulent economic times caused by their own bad practices. To penalize victims rather than the offenders, it’s not only ludicrous but it’s a crime against decency and humanity.

As a new member of the EU, Cyprus quickly jumped on the gravy train and established the Cyprus Stock Exchange to play its part of this globalization. The government and politicians hailed this as the result of a great foresight. The buzzword was “economic wealth for all” and citizens were urged to rush out and purchase shares to help the nation grow into prosperity. That they did! Trusting their government, people bought shares with the result of losing fortunes due to corruption.

Banks, industrialists, politicians and those who had “insider trading connections” made millions from this financial honey trap, while Citizen Joe lost his savings, home and livelihood. To this day, nobody has been prosecuted or held accountable for the biggest financial scandal and fraud on the island. Profiteering, protected by vision-less governments has gone too far!

The British slogan “Rip-Off Cyprus” has become a reality

As it stands, Cyprus today has become the most expensive county in Europe. The British slogan “Rip-Off Cyprus” has become a reality. Meanwhile the consumers are trapped and as victims of sheer greed, corruption and government incompetence try to make ends meet against insurmountable odds.

At the moment, the overall public perception on the island is one of hopelessness! High-energy prices (a 40% increase since last year after the Marie explosion) have become unbearable while food costs are no longer affordable; there also seems to be no ending to the rising unemployment, which has reached 11% with more than 45,000 people out of a job. There is zero growth in the economy and 35% of all new homes remain unsold and empty while the construction industry is dead. Personal bankruptcies are on the rise with 900 convictions last year and hundreds of others in waiting. Poverty and hunger is now detectable in some parts of the island while a silent sector in society has become destitute and lives in despair.

From a surplus position of a public purse, a squandering government had to borrow billions on the open market to cover the interest on its loans and operating costs. The nation is certainly suffering, but a lame government, instead of making sweeping changes in support of consumers and citizens at large, continues to play political shenanigans and dogmatic games; a most shameful act indeed!

Author of:
WHO SHALL GOVERN CYPRUS – Brussels or Nicosia? -Political analysis
ANDARTES – a revolutionary riveting novel
PORPHYRA in PURPLE – a metaphysical spellbinding novel

All books are available from: Bookshops, Barnes & Noble, Amazon.co.uk, Amazon.com, Waterstone’s, Kindle and the Internet. Other published articles can be found on Google under “Vanishing Cyprus” or under “Andreas C Chrysafis”.