InsiderBusinessCo-op probe decree published

Co-op probe decree published


A decree issued by the attorney general on an inquiry into the plight of the co-op credit sector was published in the official gazette on Friday, opening the way for the swearing in of the three member committee on Monday and the launch of their probe.

Attorney general Costas Clerides has appointed former Supreme Court judge Yiorgos Aresti, former Securities and Exchange Commission chairman Yiorgos Charalambous and former Alpha Bank Cyprus CEO Yiorgos Georgiou to carry out a full and thorough investigation to establish the events, decisions, acts or omissions which relate to the reasons that led the co-op to its current plight.

Under their terms of reference, the committee should also look at the decisions relating to profits announced over the past years as well as their management;  whether supervision was adequate and whether the instructions given by the supervisory authorities as to their operation were adequate; whether internal audit, risk management and compliance procedures were satisfactory; the events and decisions relating to the issue of loans and other facilities and the management of NPLs, as well as debt forgiveness;  the way co-op credit societies’ property was managed;  whether state officials took timely action to rescue the co-op credit system and whether their actions were comprehensive and took into consideration the impact on public finances; whether there was any political intervention in the operation of the co-op credit system; whether any state official, employee or board member demonstrated dereliction of duty; the decisions and management of the board of directions or other officials; whether the decision to recapitalise the co-op with state funds was correct one.

The committee should also investigate any related issues it deems necessary, the decree added.

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