Hector Georgiou
Police have launched an investigation on their own initiative into a BBC report alleging that billions linked to Russian oligarch Roman Abramovich “disappeared” through Cyprus.
The matter was discussed by the House Committee on Institutions, Values and the Commissioner for Administration, which took it up on its own initiative.
During the discussion, Andreas Anastasiades, assistant director of the Crime Combating Department at police headquarters, said the case concerned events between 2003 and 2006.
He explained that police began gathering evidence following the report. The investigation is expected to take about six months, although the time that has elapsed makes it a difficult case.
Police will also consult the relevant authorities to assess the available material. If evidence of possible offenses emerges, they will take the appropriate action, he said.
Andreas Zachariades, vice chairman of the Cyprus Public Audit Oversight Board, said the board contacted the firm involved following publication of the report. The firm presented its position and undertook to inform the board if further evidence emerged.
He also stressed that both professional culture and audit quality had improved since the board began operating in 2017.
Deloitte’s statement to Kathimerini
Kathimerini contacted Deloitte Cyprus for its response to the BBC Panorama report. The firm said it had no comment on the reports and could not comment on the information made public.
It said the only statement it could make was that Deloitte Cyprus, like all Deloitte firms, always acts in compliance with the applicable laws governing audits and procedures.
What the report alleges
According to the BBC, Deloitte Cyprus made assets worth $672 million—including superyachts, mansions and private jets—"disappear" from the accounts of Abramovich’s company.
The report also alleges that Deloitte advised on avoiding a substantial tax liability on the oligarch’s wealth through the falsification of documents. The findings emerged from a joint investigation by BBC Panorama and the Bureau of Investigative Journalism.
Documents leaked from MeritServus shed light on some of the practices described in the investigation.
The first example dates to 2006, after a new law in Cyprus required company accounts to be made public. The transparency law threatened to expose details of Abramovich’s vast wealth.
Deloitte Cyprus had prepared draft accounts for 2003 for his Cyprus-based company, Amiscan Investments, but had not yet finalized them. Those accounts detailed luxury assets worth $672 million.
According to the report, Deloitte Cyprus reviewed backdated documents and said they were “sufficient” to allow the assets to be removed from Amiscan’s accounts.
