Papadopoulos law office denies wrongdoing on arms deal claim
TASSOS Papadopoulos & Associates have denied allegations their law firm was involved in a stalled multi-million pound arms deal between the government and a Chinese weapons manufacturer.
On Sunday, Politis published a letter addressed by the law office to state-owned NORINCO, where it demands payment on behalf of a client.
In it, the law firm warns NORINCO that unless their client is compensated within seven days, they will “be forced to brief the House Defence Committee, the Defence Ministry and the Auditor-general forthwith, as also take all legal steps at our disposal in order to obtain the dues.”
According to Politis, what can be gleaned from this correspondence is that Tassos Papadopoulos & Associates represented the agents, or go-between, for the contract. It seems the middleman may have been demanding a commission for facilitating the deal.
Prior media reports, carried by Politis and other newspapers, spoke of the purchase of 75 self-propelled gun howitzers from China, in an agreement worth an estimated £40 million.
The deal fell through late last year, ostensibly because NORINCO was denied an export permit by the Chinese government.
Politis acknowledged the agreement was initially signed in January 2003, before Papadopoulos was elected President. Papadopoulos left the law firm on becoming head of state.
But the daily raised some “ethical questions” surrounding his law firm’s apparent implication in the affair.
For one thing, it said, how could a private law office threaten to “report” NORINCO to Cyprus authorities? Given there are no proper channels for such a procedure, the law firm must have been wielding Papadopoulos’ name to add punch to its threats.
Moreover, a Cabinet decision dating back to 2004 states that arms deals should preferably leave out any middlemen, so as to minimise the cost to the state.
In addition, even though Papadopoulos was not President when the deal was signed between the government and the Chinese company, he was a deputy; and state funds intended for weapons purchases must get the green light from Parliament.
In the letter, the law firm names Chams Limited as their client. Politis looked up the name with the Registrar of Companies, but found no such listing. There were two similar listings containing the word “Chams”, though these were not actually listed, instead the names had been “reserved”.
This in turn raised the question of how the law firm could represent a company that was not even registered on the island. For the purposes of taxation, the Defence Ministry requires all agents of arms manufacturers to be listed.
That opens up the possibility that Chams Limited may be a foreign concern. Following up on the story, Alithia claimed yesterday the company is indeed registered abroad and that its owner is a Cypriot who is also a member of DIKO, the President’s party.
There was no response yesterday from Papadopoulos, the Government Spokesman or the Defence Ministry.
However, Tassos Papadopoulos & Associates released a statement, where they acknowledged representing Chams Limited, but said the deal between Chams and NORINCO was of “a purely commercial nature”.
“Our actions were well within the law and professional ethics, and there is nothing untoward in our professional conduct,” the statement read, hinting the law firm might take legal action against Politis.
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