SPARKS flew in court yesterday as a former business partner of President Tassos Papadopoulos insisted their law firm had no part in Yugoslav sanctions-busting in the 1990s.
It was the second hearing in a libel case brought by Papadopoulos against the Financial Times for reporting in 2002 that his law firm had close ties with companies suspected of siphoning money abroad.
Papadopoulos himself, his law firm Tassos Papadopoulos & Co, as well as the firm’s partner Nicos Papaesftathiou are suing the Financial Times for £250,000.
According to a report by Morten Torkildsen, an investigator at the United Nations war crimes prosecutor’s office, the Popular Bank of Cyprus allowed a group of Yugoslav-controlled front companies to operate in defiance of UN sanctions.
The report named eight companies in Cyprus which supplied Milosevic’s government with fuel, raw materials, spare parts and weapons to pursue wars in Bosnia in 1992-1996 and in Kosovo in 1998-1999.
All eight ventures were registered on the island as offshore companies by the Tassos Papadopoulos law firm. The same firm acted as legal advisors for the Popular Bank and for Beogradska COBU, the Nicosia-based offshore branch of Beogradska Banka, a state-owned Yugoslav bank.
According to Yugoslav Central Bank officials, as much as $4 billion in foreign currency is thought to have been transferred to Cyprus between 1992 – the year the UN embargo came into force – and 1994. The funds were mainly deposited in the Popular Bank and its Greek subsidiary, the European Popular Bank.
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