The International Consortium of Investigative Journalists (ICIJ) is working to substantiate with evidence the stance that Cyprus serves as a hotspot for companies producing surveillance software and acts as a hub for exporting such systems.
Two distinct cases emerged into public view yesterday through the ICIJ network and Reporters United. The central figure in both narrative reports within the ‘Cyprus Confidential’ investigation is Sara-Faisal Alexandra-Hamou, reportedly the partner of Tal Dilian.
The latter has occasionally drawn public attention in Cyprus, primarily linked to the surveillance van case, and is presented as the founder of Intellexa.
Consequently, he is also the owner of the Predator software, which, according to allegations, has been maliciously used against journalists and politicians in Greece, most notably involving Thanasis Koukakis and Nikos Androulakis, respectively.
These two reports bring forth new evidence concerning the operations of certain Cypriot companies. These business entities appear to have been managed by Ms. Sara Hamou.
The ICIJ, which coordinated the extensive journalistic investigation involving 3.6 million leaked files, highlights the role of Maravilhas Solutions Ltd. According to positions articulated by journalist David Kener, Maravilhas was not detached from the surveillance software industry and was likely involved in trading such systems, with Cyprus as its base.
A noteworthy direct quote reads: “In September 2019, in the meantime, Hamou’s accountants informed her that the tax authorities of Cyprus, at the request of another European state, had examined a transaction in May, where Maravilhas had purchased goods worth $120,000 from an Israeli company and had sent them to Belgium. For Israeli companies, it might have been simpler to collaborate with a company incorporated in the EU, such as Maravilhas, to sell goods to other European countries.
However, this redundant equipment shipment method might also be a practice employed by cyber-surveillance operatives to circumvent export laws.
In a leaked correspondence from a separate investigation, a lawyer from a French company that was part of the Intellexa alliance wrote that if cyber-surveillance equipment was combined with other goods and sent to a third country before reaching its final destination, the company didn’t need to declare the ultimate user to the export authorities.”
Following this, the journalist provides evidence regarding Maravilhas’ scope of activities: “Confidential documents from Cyprus also demonstrate how Maravilhas was deeply embedded in Israel’s cyber-surveillance. In January 2019, an Israeli company specializing in cell control and intervention, Septier Communication, paid over $100,000 to Maravilhas for an ‘Active System Installation.’ The invoicing states that the equipment was used for the ‘Indo Project,’ and Maravilhas’ financial documents record a project in Indonesia during the same period.
Maravilhas also signed confidentiality agreements with at least seven Israeli companies, including Israel Cargo Logistics, a cargo accounting company based at Ben Gurion Airport, PICSIX, a company founded by former intelligence service officers providing telephone intervention technology, and Rayzone Group, which advertises its expertise in ‘designing and developing high-quality information solutions.'”
Reporters United, an investigative group based in Greece, assert that Sarah Hamou “has been involved in the boards of more than 20 companies linked to Dilian,” revealing the role of Censura, which is based in Cyprus.
They note that in 2019, when the scandal with the black van in Larnaca broke out, Dilian transferred all shares of the company to Hamou.
The report by Greek journalists characterizes Censura as “previously unseen as a Cypriot company of Tal Dilian, founder of Intellexa, and partner and associate of Sarah Hamou.”
They add that “unanswered questions arise from an unexplained transaction: Censura, at a time when Predator was in full development in Greece, was paid €325,000 to provide ‘well-being’ data to a company creating a ‘meditation’ app, owned by an Israeli couple living in Athens.”
In another publication, it’s mentioned that when Roman Abramovich owned Chelsea, he made secret payments, violating football regulations. It’s also noted that “four leading sports lawyers told The Guardian that the transactions revealed by Cyprus’ confidential documents may breach UK football rules.”
Furthermore, a report states that the Cypriot company Abacus assisted Putin’s friend and oligarch Petr Aven in transferring $5 million on the day sanctions were imposed. However, there is no evidence of violating the sanctions.
Finally, the ICIJ notes in another publication that Syrian leader Bashar al-Assad “used an intermediary from Cyprus in an attempt to evade sanctions on the oil industry.”
Reactions
In circles of state officials and professionals in the financial services sector, there’s a sentiment that there were no general legal issues for Cyprus, but possibly bad practices until spring 2022.
Many comment simultaneously that Cyprus has now adopted sanctions and largely abandoned these practices.
It’s worth noting that the main focus of yesterday’s revelations concerned a $1.4 billion capital transfer by Russian steel magnate Alexey Mordashov through the Cyprus branch of the international firm PwC. An official from the Ministry of Finance reportedly told the ICIJ that a criminal investigation is ongoing.
A source close to PwC had previously stated that the investigation did not involve the auditing firm. This was reiterated in recent statements by George Panteli, Director-General of the Ministry of Finance, clarifying that “there is nothing tangible that shows a breach of touch-and-go sanctions, as there were no sanctions issued by the European Union at that time.”
He added: “We expected to see something more significant, but it’s a rehash of various events that journalists are trying to connect.”
Moreover, Finance Minister Makis Keravnos, speaking to journalists, stated that what particularly bothers him is that these investigations continue to portray Cyprus as a financial/investment destination with problems.
He added that the findings regarding this journalistic investigation go until April 2022 and there were no sanctions then.
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