DELAY IN PAY-OUTS TO GC CLAIMANTS COSTING TRNC ‘MILLIONS’ IPC: ‘ALARM BELLS RING’
CURRENCY fluctuations and the length of time taken to pay compensation to former Greek Cypriot property owners is costing the Immovable Property Commission (IPC) “millions” and “alarm bells” are ringing for its future, it has been claimed.
The budget for the IPC is set in Turkish lira, even though pay-outs are in British sterling — which is now worth nearly three times what it was eight years ago — lawyer and former foreign minister Emine Çolak told Cyprus Today.
One pound bought around 2.25TL in October 2010 but the figure this week breached the 6TL mark. The IPC, which has shelled out £272 million to just over 900 Greek Cypriots since it was set up in 2006, is seen as an “effective domestic remedy” by the European Union — a position that was reaffirmed in a final judgment earlier this year, although it found failings in certain individual cases.
Turkish Cypriot lawyers, however,
issued a warning this week that the TRNC needed to up its game in the face of a fresh bid by Greek Cypriots to claim that the pace of decisions and pay-outs means the IPC is not working.
“We certainly know how to shoot ourselves in the foot,” Ms Çolak said. “Compensation payments are done in pounds sterling but the budget for this is based on TL.
“Imagine, cases settled four or five years ago, where compensation has not yet been paid, will cost up to three times more now because of the TL devaluation.
“I say this for the first time: the IPC is losing millions of TL as a result. This is a ridiculous situation.”
Ms Çolak accused current politicians of failing to “appreciate” the importance of the IPC.
“I do think the IPC is slow, but it is not ‘ineffective’,” she added.
“The issue needs to be taken up urgently at the diplomatic and political level.”
Her comments came as the Greek Cypriot press reported that lawyer
Achilleas Demetriades was preparing to launch a fresh move to declare the IPC ineffective “for areas under the control of the Turkish army”, which includes claims for the fenced-off resort of Maraş. Turkish Cypriot human rights lawyer Murat Metin Hakkı told this paper that the new case should set off “alarm bells” for the IPC but that “no Turkish or TRNC politician is hearing them”.
“The IPC is now on a cliff edge and could sink like the Titanic,” he warned.
“It is currently discussing applications filed as far back as 2011. It is unacceptable for the [IPC] to invite applicants to negotiate a settlement seven years after their application.
“The IPC has not settled a single case concerning properties in Maraş.”
Mr Hakkı said Greek Cypriot applicants were unhappy over the backlog of compensation cases; the amount of time they are having to wait to receive their money after a case has been settled; and the rejection of claims concerning Maraş.
“There are now 38 cases filed . . . with European bodies, diplomats and officials. The IPC is heading for a crash,” Mr Hakkı added.
IPC head Ayfer Said Erkmen defended the organisation and said some claims concerning property in areas under military control had been settled, including one relating to the Balina military base in Karşıyaka.
“With regards to Maraş, we have not made any ruling on this because of UN resolutions 541 and 789 . . . It is nothing to do with the claims by the [Evkaf religious foundation] that Maraş is [their] land.
“Maraş is an issue of constant discussion at [Cyprus] negotiations.”
Mr Erkmen, who recently sparked controversy by suggesting that a form of capital gains tax could be introduced on owners of so-called “eşdeğer” (exchange) property to help pay for compensation, called on politicians in Turkey and the TRNC to “re-evaluate” the financing of the IPC.
“The fact that some procedures are working slowly does not mean the IPC is not providing domestic legal remedies to applicants,” he continued.
“What we want is for politicians to take steps to help the payment of compensation awards.”
He added that in some instances delays were down to applicants failing to turn up for hearings.
“On the Ioanniou case . . . they did not come to a hearing on [Monday]. We have fixed a new date for October 1. They don’t come, then complain it takes years to settle.”
Prime Minister Tufan Erhürman declined to comment on the matter yesterday, referring questions from Cyprus Today to his deputy, Kudret Özersay, who was in Turkey and could not be reached.