Cyprus CBI Scandal Escalates: Ex-Minister Charged, 8 Citizenships Revoked, Former President Under Fire

Authorities announced Wednesday that Cyprus has revoked the citizenship of eight individuals who obtained it through the country’s citizenship by investment program.

This decision marks the latest development in an ongoing investigation into alleged corruption and irregularities within the now-terminated program.

While the government withheld the identities of those who lost their citizenship, it confirmed the group includes both investors and their dependents.

This move follows the massive collection of evidence by investigators examining suspicious naturalizations linked to a case against former Transport Minister Marios Demetriades.

The revocations are not isolated incidents. In June, the government stripped Russian-Ukrainian billionaire Konstantin Grigorishin and oligarch Igor Kesaev of their Cypriot citizenship. Ten more revocations soon followed.

Former Transport Minister Faces Charges

Marios Demetriades, who served under former President Nicos Anastasiades from 2014 to 2018, now faces over 50 charges related to corruption, bribery, and money laundering.

The indictment implicates eight individuals and two legal entities, including Demetriades’ family members and their law firm.

The charges against Demetriades involve his alleged intervention in the naturalization approval process, including a trip he made to China as a government official.

Additional defendants include a lawyer from the firm, a foreign investor, and a staff member at Cyprus’s embassy in China along with her spouse.

Investigators claim that investors paid for Cypriot passports, with 25% commissions allegedly distributed through corporate entities. According to sources close to the investigation, the probe also uncovered evidence of false invoicing.

Demetriades vehemently denies the accusations, asserting he “served responsibly and with integrity, always prioritizing public interest.”

He suggests the charges aim to “divert attention from those truly responsible for the Cyprus investment program,” hinting at a broader controversy beyond his own involvement.

The case is set for an October hearing at the Criminal Court. Savvas Kakos, a prominent land developer, is listed as a key prosecution witness. Demetriades has contested Kakos’s involvement, writing to Attorney General George Savvides to claim that Kakos’s statements were inaccurate. In his letter, Demetriades alleged that Kakos had benefited from the naturalization process and referred to him as a “professional prosecution witness.”

His family law firm, Andreas Demetriades & Co. LLC, claims it has been implicated in the case. It issued a statement decrying “unprecedented and limitless targeting that serves ulterior motives ” and vowing to contest the charges.

The firm expects the legal process to allow it to articulate its position and arguments and highlight the reality of the facts and that it is “the only institutional path that will lead to uncovering the truth.”

The investigation extends beyond the former minister. Police, under Law Office supervision, are scrutinizing approximately 100 citizenships granted through the program. This probe focuses on cases involving investors suspected of fraud or failing to make required investments.

A 2021 interim investigation found that 137 naturalizations promoted by a law firm linked to Demetriades had been approved at cabinet meetings he attended.

Political Fallout

AKEL, a prominent political party in Cyprus, argues the scandal’s reach extends far beyond a single minister.

The party contends that “the scandal was orchestrated and led by the Anastasiades-DISY government as a whole,” accusing it of establishing a “golden passport industry” at the expense of the country and its people.

The party further alleges that former President Anastasiades had a clear conflict of interest in the matter.

They claim this is “further evidenced by the ongoing cover-up being provided to Nicos Anastasiades by Pindarou (DISY),” suggesting a continued effort to shield the former president from scrutiny.

Anastasiades had previously denied claims that he personally benefited from the program and welcomed an investigation.

AKEL also challenges Demetriades’ claims of innocence: “Marios Demetriades, meanwhile, has claimed that others are responsible for the investment program.”

AKEL insists that Demetriades “owes it to the public” to disclose who these individuals are, emphasizing that in situations like these, “the fish rots from the head.”