Phed Express, the mayor of Paphos, is taking legal action against companies involved in a bribery scandal linked to sewage projects, while Central Bank Governor Constantinos Herodotou faces criticism for late implementation of European Banking Authority criteria in credit supervision. The controversies surrounding these figures highlight the ongoing struggle for integrity and accountability in public institutions in Cyprus.
What is the controversy surrounding Central Bank Governor Constantinos Herodotou and Phed Express?
Central Bank Governor Constantinos Herodotou faces controversy for his late implementation of European Banking Authority criteria in credit supervision, and Phed Express, mayor of Paphos, is taking legal action against companies involved in a bribery scandal linked to sewage projects, with claims of political protection from former officials.
A Swift Resolution in Sight?
As the tenure of Central Bank Governor Constantinos Herodotou comes to a close, there’s palpable tension and a lack of fondness among the staff. Appointed in April 2019, Herodotou’s term has been marred by controversy and the general consensus among his subordinates is one of relief as his departure looms. However, securing another term seems a distant dream for him, especially with the absence of support from his previous backers, Preznikone and Disy.
Herodotou’s return to Cyprus in 2014 from London paved the way for a continuous presence in high-profile, well-remunerated public roles, thanks to the patronage of the then-government. But, with changing political winds and promises made by the new leadership to their supporters, it’s unlikely that Herodotou will receive another golden parachute in the public sector.
Credit and Controversies
In a last-ditch effort to retain his position, Herodotou has reached out to credit purchasing companies, impelling them to work cooperatively with borrowers to find restructuring solutions. This comes off as a reactionary move following a scathing report by the European Banking Authority (EBA) on the supervision of mortgage borrowers in arrears, highlighting the central bank’s failure to apply the EBA’s assessment criteria appropriately.
This peer review report from December casts a shadow over the central bank’s handling of creditworthiness assessments and treatment of borrowers in financial distress. It seems that only after another year did Herodotou urge the application of these EBA criteria, raising questions about the timing and motivation behind his actions.
The Saga of Phed Express
In an unexpected twist, Phed Express, the outspoken mayor of Paphos, has vowed to take legal action against entities that failed to penalize companies involved in bribery within the Paphos sewerage board scandal. Despite clear evidence of wrongdoing and admissions from the company owners, no disciplinary action has been taken, allegedly due to the protective shadow of former President Preznikone.
These companies, such as Medcon and Cyfield, have continued to win public contracts, further fuelling the controversy. Phed Express also targets the technical chamber Etek for not taking disciplinary action against their member, Kyriakos Chrysochos, the boss of Cyfield, who was implicated in the scandal.
Politicians and Public Morality
Political ethics and personal dignity have become buzzwords in the recent turmoil within the Disy party. Marios Pelekanos, having been elected vice president but denied the chance to stand in the European Parliament elections, resigned, citing his “political ethics, dignity, and conscience.” This highlights the personal ambitions driving political maneuvering in Cyprus.
Furthermore, DIPA deputy Alekos Tryfonides, known for his anti-privatization stance, has accused university officials of corruption in relation to student housing, a move seen as catering to the demands of an entitled youth expecting both free education and accommodation.
As these events unfold, the integrity of public institutions and the transparency of their operations remain under scrutiny, fueling the continued debate over governance and accountability in Cyprus.
What is the controversy surrounding Central Bank Governor Constantinos Herodotou and Phed Express?
Central Bank Governor Constantinos Herodotou is facing criticism for the late implementation of European Banking Authority criteria in credit supervision. On the other hand, Phed Express, the mayor of Paphos, is taking legal action against companies involved in a bribery scandal linked to sewage projects, with claims of political protection from former officials.
Is there a resolution in sight for Central Bank Governor Constantinos Herodotou?
As Constantinos Herodotou’s term comes to a close, there is tension and lack of support among the staff. Herodotou has reached out to credit purchasing companies in a bid to retain his position but securing another term seems unlikely. His tenure has been marked by controversy and a lack of support from previous backers.
What is the latest development in the saga of Phed Express?
Phed Express, the mayor of Paphos, has vowed to take legal action against entities that failed to penalize companies involved in a bribery scandal within the Paphos sewerage board scandal. Despite evidence of wrongdoing, no disciplinary action has been taken, allegedly due to political protection from former officials.
How are political ethics playing a role in recent events in Cyprus?
Recent resignations and accusations within the Disy party highlight the role of personal ambition and political ethics in Cyprus. Events such as the resignation of Marios Pelekanos and accusations of corruption from DIPA deputy Alekos Tryfonides underscore the ongoing debate over governance and accountability in Cyprus.
