CYPRUS Airways (CY) board member Achilleas Kyprianou has decided to take legal measures against former chairman Haris Loizides, accusing him of slander for blaming him in a scandal involving tender irregularities in the awarding of a multi-million euro advertising contract to a firm in Greece.
Kyprianou said comments made by Loizides in the wake of the publication of a leaked investigation report were “libellous and insulting” and that he had taken no part in the internal investigation within the airline.
Loizides on Thursday accused Kyprianou of launching a smear campaign against him and attempting to assassinate his character.
According to the leaked report, a company based in Greece which also has links to a Cypriot advertising agency – and who are allegedly close to Loizides – were awarded an advertising contract through the back door. The report also insinuated the company only expressed its interest after the bidding procedure had closed. In addition it is alleged that the company in question had not stipulated any price in the contract.
The initial contract was intended to advertise and promote CY flights from Greece to boost passenger numbers to the island, and a budget of £180,000 was set aside to cover the cost.
However it is alleged that the company was also awarded, without the knowledge of board members, the job of promoting the national carrier’s Athens-based Greek affiliate HellasJet, which was launched in June, at a further cost of six million euros, without having tendered for the work.
Loizides said the issue did not concern him because no money was spent during his time in office. He said it was Kyprianou who had authorised the money after getting the approval of his brother, Finance Minister Marcos Kyprianou.
Yesterday he said Kyprianou was free to sue him if he wished.
“I’m willing to face him in a public discussion, not only on this issue but a lot of issues concerning the airline,” Loizides said.
“I think they are trying to project an image that the airline is in bad shape and all we (the previous board) did was wrong. Achilleas was a member of the board for ten years. He should be more careful when making criticism.”
