in Cyprus Today – 8/6/2011

Kulaksız 5 Builder admits he made a mistake – A builder at the centre of a loan that was never repaid – sparking an auction of homes bought by expats – has admitted he was wrong. Abdurrahman Gűney, who ran Kulaksız Construction, said he regretted ever having signed on the dotted line for the November 2005 loan on land in Karşıyaka. He told Girne District Court on Monday that he was “ready to enter a judgement and pay compensation”. There was some confusion about whether Mr Gűney or landowner Yüksel Yılmaz took out the 100,000TL loan on the Kulaksız 5 site. Mr Gűney insisted he was the guarantor but was shown banking records that stated he was the borrower. A Land Registry document showed that Mr Yılmaz took out the loan.

Mr Gűney said during cross examination he had not read the documents properly and believed he was simply guaranteeing the loan. “I admit I made a mistake” he said. “I was not acting in a fraudulent manner. I made losses. My company made losses.” “I made a mistake” he said “I was only a guarantor.”

“My understanding was that the landowner,  Yüksel Yılmaz, would take out the credit and pay it back quickly” he added. “I did not know it would come to this. I am ready to enter a judgement and pay compensation”.  He then said, however, he had no money to pay any compensation. Mr Yılmaz is believed to be in Turkey, working for Pegasus Airlines. The loan, which was taken out despite the construction and sale of homes on the land, was never repaid. A year ago this month, the land, and with it the properties, was sold at public auction, leaving the expat buyers facing eviction.

Last month Cyprus Today revealed claims that Kulaksız Construction had taken out loans on land at four or five sites and nothing had been repaid. A spokesman for the builders denied the claims, which had been made by buyers. The expats are currently involved in a case attempting to prevent the sale of the houses they bought back in 2005. The court heard that in 2009, a previous court case to stop the auction and sale of homes was withdrawn. Richard Barclay, speaking on behalf of the buyers, said this had happened on the advice of their own advocate. He said it was something the buyers were unhappy about, but the judge had told their advocate to withdraw the application. The current court proceedings have been adjourned until Tuesday.

$250M scheme for coastline – One of the biggest investors in the TRNC has unveiled multi-million-dollar plans to transform the Alsancak coastline with hotels, shopping malls and a zoo. Merit International Hotel and Resorts is behind a revival of the Mare Monte complex and a new hotel next to its Crystal Cove site. It is ready to pay up to $250 million on the kilometre long stretch of the sea front and is hoping to win new tourism markets for North Cyprus – Japan and China. The construction is due to start later this year and expected to take 5 years to complete.

VIP guest flies in for dream wedding – The wedding – Charlie Smith (son of TRNC estate agent Ian) and his bride. Mr Branson flew into Larnaca (!) by private jet.

Turtle tragedy as five found dead in a week – Prompt action saved a turtle from strangulation by fishing line last month but as the nesting season begins, five more have been found dead this week.

Drinks in the clear over tourist deaths – Tests prove TRNC produced alcohol did not kill Russian trio. Tests revealed the trio died after drinking Mister Burdon labelled whisky and rakı, which contained triple the accepted limits of methyl alcohol, during a boat trip in Bodrum. These drinks are not produced in the TRNC.,

Denktaş making good progress day by day – Rauf Denktaş is making daily progress, two weeks after the stroke that almost claimed his life. He is choosing TV programmes and keeping up with the news. Although he remains paralysed on his left side, he was now breathing unaided and his condition was much improved.