Cyprus audit watchdog acts over allegations involving Deloitte and Abramovich assets

Nicosia, Cyprus. Cyprus’s public audit oversight board is taking steps following allegations that Deloitte Cyprus helped hide assets worth billions belonging to Russian billionaire Roman Abramovich by using backdated paperwork.

Watchdog responds to investigation

The board’s director general, Panos Prodromitis, addressed the reports on Wednesday.

“The authority has been informed of the recent publications and is taking all necessary actions, within the framework of its legal responsibilities and obligations, with the aim of serving the public interest,” he said.

The allegations emerged from reporting jointly conducted by BBC Panorama, the Bureau of Investigative Journalism and the Organised Crime and Corruption Reporting Project (OCCRP). The investigation drew on leaked corporate records and emails numbering in the thousands.

According to the investigation, advisers at Deloitte Cyprus backdated paperwork to portray asset transfers as occurring years before the documents were prepared. The reporting alleged that this could have lowered tax liabilities and bypassed disclosure obligations under Cyprus law.

Companies and assets examined

The reporting examined two Cypriot companies. One, Electus Investments, was linked to assets exceeding €8.6 billion and ownership of Millhouse UK.

The other, Amiscan Investments, had approximately €578 million in assets listed in its draft 2003 accounts, according to the investigation. These included aircraft, yachts and high-end properties in Britain and France.

The investigation described an agreement drawn up in 2006 that carried the date January 4, 2003. It purported to transfer 19 subsidiaries from Amiscan to Kelvedon Worldwide, which was registered in the British Virgin Islands.

According to the reporting, Deloitte Cyprus examined the paperwork and deemed it adequate grounds for excluding those holdings from Amiscan’s accounts. By the time the accounts received approval in December 2006, Amiscan’s reported assets stood at approximately €65,000.

The investigation also cited a January 2007 email in which a Deloitte Cyprus executive described Amiscan’s chief priority as keeping disclosures about its subsidiaries to a minimum.