A RIFT has emerged in the higher echelons of CyTA (Cyprus Telecommunications Authority), with the general manager and the board of directors bickering over who has power to transfer executives.
The row, simmering for the past few months, was re-ignited last week when general manager Nikos Timotheou issued a circular informing personnel of the transfers or promotions of top executives.
In doing so, Timotheou incurred the wrath of the powerful board of directors, who said he should have cleared the move with them or at least informed them of his intentions.
At a subsequent meeting, the board voted by a majority to cancel the directive. Timotheou grudgingly agreed to the decision, but said he wanted it in writing.
At the heart of the matter is whether Timotheou, as general manager, has absolute authority over promotions and transfers of department heads. CyTA has relevant personnel regulations to this effect. The board – which comprises political appointees – begs to differ.
Critics have long said that semi-government organisations are prime nesting grounds for nepotism, as successive governments appoint cronies or friends to key positions.
Timotheou’s action came in light of the planned departmental restructuring of CyTA, aimed at overhauling and streamlining the operation of the colossal organisation. A similar reshuffle took place three months ago, again on Timotheou’s initiative. But at the time a showdown was averted, with the board agreeing to a compromise formula – the appointments were said to be interim.
According to sources, some of the changes occurred in critical departments, such as pre-paid mobile telephony and electronic communications.
Nevertheless, this time round the board of directors has refused to turn the other cheek, with both sides having recruited lawyers to support their case.
This week board chairman Stavros Kremmos tried to play down the issue, saying it was down to a “difference of opinion, not a crisis.”
The debacle comes at a time when CyTA is operating under “twelfths” – provisional budgets that are implemented month by month. The Cabinet has yet to sanction the organisation’s official budget.
Recently the telecom giant suffered another setback when it was fined £2.2 million by the Competition Commission for abusing its dominant market position. CyTA plans to appeal the decision.
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