Ayia Napa mayor pleads not guilty to money laundering

Ayia Napa Mayor Christos Zannettou on Friday pleaded not guilty before the Famagusta Criminal Court to charges related to the misuse of EU funds for a hotel renovation project in which he held a stake.

During the court proceedings, Zanettou denied the charges brought against him which concerned forgery, circulation of a forged document, obtaining money under false pretenses, false reports by company officials, and money laundering from illegal activities.

The Criminal Court has scheduled the next hearing for October 30.

Until then, the re-elected mayor will remain free under bail. The sum of €100,000 with a reliable guarantor was set.

Zannettou is accused in a case involving the securing of €765,000 from European funds 12 years ago. The funds were allegedly used for the upgrade of a hotel, where Zannettou was serving as director and shareholder at the time.

Earlier this month, the interior ministry issued a statement noting that based on a legal opinion from the Legal Service, there would be no suspension of Zannettou from his post. This decision took into account the timing of the offenses and the legal framework in place at that time.

According to an opinion from the attorney general’s office, the charges he faces are linked to events which unfolded before he took up office. Furthermore, the initiation and completion of the investigation, as well as the filing of the criminal case, occurred before the new municipalities law came into effect. The previous law, which was in force until June 30, 2024, did not have similar provisions for suspending elected Municipal Council members.