The launch of a criminal investigation against former Minister of Agriculture Nikos Kouyialis, as well as the former directors of the Environment Department and the Fisheries Department, Costas Ch. Panayiotou and Loizos Loizides respectively, over the illegal development “The Land of Dreams” in Trimiklini, appears to be a one-way street for Attorney General Giorgos Savvides, who is expected to have all the evidentiary material in his hands by next Monday.
In a statement issued yesterday, the Independent Anti-Corruption Authority explained why the three individuals should face criminal scrutiny, specifically for the offence of abuse of power. The Authority made public evidence concerning efforts allegedly undertaken by all three, arbitrarily and abusively, to legalise the fish farm operating within the development for caviar production.
What remains unanswered - at least on the basis of the Authority’s announcement - is the motive behind their actions. Why would a minister and two department directors insist on legalising this particular operation at all costs? Were they acting on instructions from higher up, or on personal initiative?
The actions for which the above individuals, as well as a large number of public officials serving in various departments and services of the Ministries of Agriculture and Interior, were examined include the following:
- Diversion of water from the Kouris River to the “The Land of Dreams” development.
- Transfer of that water to the illegal fish-farm installations at the development.
- Construction and operation of illegal aquaculture facilities, a leisure centre and visitor accommodation at the site, as well as unlawful interference with state land.
- The licensing process for another fish farm, of the same interests, in the community of Silikou.
The investigation, conducted on behalf of the Anti-Corruption Authority, was carried out by former judge (President of a District Court) Nikos Yapanas and extended as far back as 20 years. In total, 55 hearings were held, during which 64 witnesses testified, including the former officials and public servants under scrutiny.
The terms of reference given to Mr Yapanas by the Anti-Corruption Authority were to establish whether, over time, illegal acts and/or omissions occurred that could give rise to suspicions of corrupt practices by state officials and/or public servants.
Former minister 'abused his power'
Nikos Kouyialis served as Minister of Agriculture during the first five-year term of Nicos Anastasiades’ presidency, from 1 March 2013 to 28 February 2018. According to the Anti-Corruption Authority:
He never visited, in his official capacity, either the Trimiklini fish farm or the one in Silikou. He was, however, aware of their operation, as there was a request by the owner to draw water from the Kouris River.
The owner of the fish farms had submitted a request for the diversion of the Kouris River upstream of the Trimiklini dam for the needs of his fish farm. This request was rejected by a decision of the ministry’s permanent secretary dated 8 August 2017. Subsequently, on 23 August 2017, the owner filed a hierarchical appeal against that decision.
On 13 September 2017, Nikos Kouyialis, without following the prescribed legal procedure, approved the owner’s hierarchical appeal, granting permission for water abstraction from the Kouris River at a point above the Trimiklini dam. His actions did not stop there: without any relevant application having been submitted, he also approved the supply of water from the dam itself.
In his findings, former judge Nikos Yapanas reached the following assessment regarding Nikos Kouyialis:
“The final conclusion drawn is that, in exercising the authority granted to him by the relevant law, without investigation, inconsistently and without studying the various letters and issues raised, with a handwritten note and signature on the same day, he approved two contradictory permits. An obvious and reasonable conclusion that can be drawn - and is indeed recorded as a finding - is that he approved the hierarchical appeal without any control or investigation whatsoever, exercising his statutory powers in a wholly arbitrary and abusive manner.”
Predetermined decision
Mr Yapanas further notes in his report that:
“It is evident that the witness’s purpose (i.e. N. Kouyialis) was to approve the hierarchical appeal outright, without any control or investigation, not even a review of the correspondence, approving with complete indifference two different and mutually conflicting permits. This indicates a predetermined decision, entirely arbitrary and abusive. His arbitrariness is further demonstrated by the fact that he either confused or conflated matters, as did his handwritten notes, as to whether the request concerned water abstraction from the Trimiklini dam or from the Kouris River.”
The former judge concludes his findings as follows:
“Mr Kouyialis, exploiting the position of minister that he held, abusively and entirely arbitrarily, and without any control or investigation, approved the said hierarchical appeal.”
The responsibilities of the directors
The Anti-Corruption Authority recommends that the former directors of the Fisheries Department, Loizos Loizides, and the Environment Department, Costas Ch. Panayiotou—both now retired—be subjected to criminal investigation for the offences of abuse of power and conspiracy to commit a misdemeanour.
According to the findings of the investigation, Mr Loizides is the individual who signed the two permits for the establishment and operation of the fish farm, dated 13 October 2011 and 7 February 2013. The permit dated 7 February 2013 was signed after an unlawful and wholly abusive letter had been sent by Mr Panayiotou. Mr Loizides stated in his testimony that, had he not signed the permit, the fish farm would have continued to operate illegally. Former judge Nikos Yapanas strongly criticises this assertion as arbitrary and unjustified, while Mr Loizides’ actions were deemed abusive.
Moreover, the permit dated 7 February 2013 was issued by Mr Loizides in coordination with Mr Panayiotou because the official opening of the fish farm by the then Minister of Agriculture, Sofoclis Aletraris, was imminent and the site needed to appear legally authorised.
According to the report, the two men “knowingly, deliberately and intentionally bypassed the entirety of the applicable legislation and regulations, relying on the positions they held as directors of their respective departments and, entirely arbitrarily and abusively, conspired with one another to issue the permit for the establishment and operation of the fish farm dated 7 February 2013”.
Disciplinary responsibilities
The investigation also identified potential disciplinary responsibilities involving seven public officials, for the following reasons:
Four officials of the Department of Agriculture: A serious lack of substantive checks was identified within the framework of a programme co-financed by EU funds, as well as payments made without proper investigation to involved companies. As a result, an amount of €657,000 was paid to those companies, despite the fact that they did not hold the necessary licences from the Contractors Registration and Control Council.
Two officials of the Limassol District Administration: The findings indicate that, from 9 November 2017 onwards, they failed to take the legally required enforcement measures against the illegal structures operating at the development. As a result, the case remained unjustifiably pending for a period of six years. They demonstrated excessive and unjustified delay and acted with indifference in advancing the case before the courts.
One official of the Fisheries Department: The evidence indicates that this official issued permits for the establishment and operation of the fish farm without any adequate - or indeed any substantive - verification of compliance with the permit conditions, acting in an unorthodox, erroneous manner and in violation of the applicable legislation.
