‘Pothen esches’ is a mathematical equation

I return to the subject of my article last Sunday because it is a matter of the utmost national importance.

As I have explained in the past, “pothen esches” (“where do the funds come from?”) Obeys the following mathematical equation:

Increase or decrease in the net assets of a politically exposed person (PEP) in a given calendar year

= declared income, less family expenses incurred in that year

Obviously, to satisfy the equation, one must correctly state and quantify all the factors that are part of the equation. The omission of one or more factors (such as, for example, certain items of income or the living expenses of the family of the politically exposed person) inevitably results in inequality, which makes it impossible to draw reasoned conclusions about “pothen esches”. “.

It follows that writing down randomly selected pieces of information on paper (as is the case for the financial statements of PPEs currently filed) is of no use.

The purposes of “pothen esches” are served by the reporting template, which is presented (in English and Greek) on the site https://pothen-esches-cyprus.com in an analytical manner that facilitates information verification provided and the separation of publishable and non-publishable items (such as bank account numbers, vehicle registration numbers, etc.). The complexity of this declaration is similar to that of the annual tax declaration, which every citizen and, of course, every politically exposed person has the obligation to produce.

What is required is the link (or “bridging”) of the tax return for a given year with the increase / decrease in PPE net assets during the same period. The task of linking the two can only be undertaken by the person filing the “pothen esches” declaration, possibly assisted by his accountant (in the most complicated cases). This is so because only the person making the statement is able to know what has been omitted and therefore the validation of the equation is compromised. It can be the result of innocent forgetting, but it can also be the result of intentional withholding of relevant information.

The positions set out in this article do not represent my original ideas, but internationally recognized accounting principles. We are obliged to respect them and apply them in Cyprus if we really want to have a “pothen esches” system that works effectively and efficiently.

Any other approach is sure to waste precious time, cause unnecessary inconvenience and ultimately lead to a nil, as has happened over the past 17 years. There follows a crucial question which politically exposed persons (who are empowered to legally regulate the issue of ‘pothen esches’ in a way that will produce the desired results) are called upon to answer. The question is whether they are prepared to provide the Cypriot people with the desired transparency regarding their economic transactions during their time in high public office. If the answer to this crucial question is ‘no’, they should say it in clear and unambiguous terms, so that we can put an end to this agonizing story and reluctantly accept that ‘this is Cyprus’.

Christos Panayiotides is a regular columnist for the Cyprus Mail, Sunday Mail and Alithia