VZCZCXYZ0002
PP RUEHWEB

DE RUEHNC #0449/01 0831453
ZNY CCCCC ZZH
P 241453Z MAR 06
FM AMEMBASSY NICOSIA
TO RUEHC/SECSTATE WASHDC PRIORITY 5749
INFO RUEHTH/AMEMBASSY ATHENS PRIORITY 3538
RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0024
RUEHBS/USEU BRUSSELS PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0499

C O N F I D E N T I A L NICOSIA 000449 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR IO/PSC (LIZ PARKER) 
 
E.O. 12958: DECL: 03/23/2016 
TAGS: PREL PGOV EFIN CY
SUBJECT: CYPRUS: INDEPENDENT INQUIRY COMMITTEE FOLLOW-UP 
 
REF: A. SECSTATE 40595 
 
     ¶B. 05 NICOSIA 1697 
 
Classified By: DCM JANE ZIMMERMAN; REASONS 1.4 b and d. 
 
¶1. (C) Summary: Per reftel request, we raised on March 20 the 
issue of GoC action in support of the Independent Inquiry 
Committee (ICC) investigating the UN's Oil-for Food Program 
(OFF) with Eva Papakyriacou, Head of the Unit for Combating 
Money Laundering (MOKAS), and key aide to Attorney General 
Petros Clerides.  According to Papakyriacou, on January 16 
the GoC formally asked the UN for documentation in support of 
the ICC's allegations against Cypriot national and former UN 
employee Benon Sevan, who is currently living in Nicosia.  In 
response, the ICC invited the GoC to view the documents in 
person in New York.  The GoC was not able to arrange a visit, 
however, before the ICC office closed.  The GoC also received 
a formal reply from the UN placing several conditions on the 
release of any documents.  This week the GoC plans to send a 
letter accepting those conditions and reiterating its request 
that the UN share whatever pertinent information it can to 
enable the AG's office to determine whether a criminal 
investigation against Sevan is warranted.  As a result, as 
far as the GoC is concerned, the ball is back in the UN 
court.  Papakyriacou also reported that her office was 
cooperating with U.S. authorities in their investigation of 
"four or five" companies active in Cyprus, which are 
suspected of violating the OFF program.  End Summary. 
 
¶2. (C) On March 20, Eva Papakyriacou head of the Unit for 
Combating Money Laundering (MOKAS) told us that in response 
to our repeated inquiries she had on January 16 signed a 
letter on behalf of the Attorney General to the UN asking it 
to provide documentation on the ICC allegations against 
Cypriot national and former UN employee Benon Sevan.  (Note: 
Sevan is currently living in his aunt's apartment in central 
Nicosia where he was discovered in October by visiting 
Staffdel Rickman.  At our request, Papakyriacou then placed 
Sevan on a watch list, requiring the Cypriot immigration 
authorities to report to Mokas should Sevan leave the 
country.  Attorney General Clerides, however, refused at the 
time to ask the ICC for the information it had acquired 
incriminating Sevan -- see Ref B. End note.) 
 
¶3. (C) According to Papakyriacou, her January 16 letter 
stated that the information would be used by the Attorney 
General's office to decide whether opening a criminal 
investigation against Sevan was warranted.  Subsequently, 
Papakyriacou received an e-mail from a "Mrs. Ringler" from 
the ICC invited her to send someone to view the relevant 
documents in New York in person.  Papakyriacou proposed the 
first or last week of April only to learn that the visit 
would have to be in March as the ICC office was closing. 
Other priorities, however, did not permit a visit before 
April and AG Clerides advised her that the Sevan case should 
not take precedence over her offices' pre-existing 
commitments.  Thus no trip to New York was made. 
 
¶4. (C) Papakyriacou reported that following the e-mail, the 
Cypriot Ambassador to the UN received a letter formally 
responding to her January 16 request.  The letter stated that 
the documents could only be shared under certain conditions 
and that this in no way would prejudice the immunities 
granted to UN employees.  The letter also reportedly noted 
that the names of all sources would be withheld and asked the 
GoC to go through the UN should the GoC need to interview any 
UN employees in the course of its investigations. 
Papakyriacou reported that she planned to send a formal reply 
this week on behalf of the AG in which she would reiterate 
her request for ICC documents on Sevan, noting that the GoC 
accepted the UN's conditions. 
 
¶5. (C) Papakyriacou also noted that in response to a rogatory 
letter from the U.S. Department of Justice, MOKAS and the 
AG's office were cooperating with U.S. law enforcement 
officials in their investigations of "four of five companies" 
active in Cyprus that are suspected of violating the OFF 
program.  She did not know, however, whether information 
leading to this investigation was discovered by the ICC or 
from other sources. 
 
¶6. (C) Papakyriacou also reported that the Cypriot Ambassador 
to the U.S. had received an "angry" letter from the HIRC 
charging that AG Clerides had refused to take any action 
against Sevan.  In his reply the Cypriot Ambassador 
reportedly denied the allegation citing as evidence the 
January 16 letter. 
¶7. (C) Comment: The AG's office has not initiated a case 
against Sevan and AG Clerides does not appear to regard this 
as a priority.  In all likelihood, the GoC will continue to 
drag its feet on this issue.  We suspect that if it were not 
for Papakyriacou's desire to remain in the good graces of the 
U.S. and the international community, no actions would have 
been taken to date.  As far as the GoC is concerned, the ball 
is now in the UN's court and the AG's office appears to 
believe it has done enough for now to cover itself.  It is 
unlikely that the GoC will make much progress on bringing 
Sevan to justice unless the UN provides incontrovertible 
proof of his guilt. Cyprus, however, has a strong record of 
cooperating with the U.S. on legal investigations and would 
be likely to cooperate with a U.S. investigation of Sevan. 
Although the Cypriot Constitution (which prohibits the 
extradition of Cypriot nationals) would preclude his 
extradition to the U.S., the opening of a formal case against 
Sevan in the U.S., and a UN decision to strip Sevan of his 
immunity, could help force Cyprus to finally take action. 
End comment. 
SCHLICHER