FOREIGN Minister George Lillikas has threatened to sue opposition chief Nicos Anastassiades for libel for insinuating he was a key player in the “scandal of the century”.
Referring to plans for a Liquefied Natural Gas floating unit, the DISY leader accused the government of intentionally stalling the construction of a land-based facility so that it could later present the offshore unit as the only viable solution.
According to Anastassiades, the administration had initially earmarked the year 2010 for completion of the land-based plant, but due to its own actions, that date has now been pushed back to 2014.
As a result, Cypriot taxpayers would have to foot some £600 million for the period 2010 to 2014 – the money that would have been saved from conversion to the less expensive LNG.
Not one to pull any punches, Anastassiades spoke of “kickbacks and commissions to people inside the government who are promoting the floating unit solution”.
He was alluding to a joint venture between a Swiss-based company called SBM and a local interest known as Apollo NG Trading, which was established for the LNG project in Cyprus.
It has been revealed that the Cypriot partner was registered by the President’s law firm, Tassos Papadopoulos & Co, raising questions of conflict of interest.
Moreover, behind Apollo is another company owned and controlled by partners in the same law firm, acting as nominee shareholders.
“Who are the real shareholders?” wondered Anastassiades.
“Is it possible that the most massive project in the history of the country – amounting to £1.5 billion – will be assigned to unknowns? And what about this Cypriot company – does it specialise in floating units, which by the way do not exist anywhere in the world?”
He also said that, as early as 2005, SBM’s annual financial reports mentioned that the only floating LNG project in the globe was a real prospect in Cyprus.
Moreover, Anastassiades said the company had recently said in a letter that they had already spent $2 million on promotion schemes.
The implication was that SBM had received assurances in private, suggesting the government had long ago made up its mind on the floating unit.
And he alleged that former Commerce Minister George Lillikas was one of the people who “encouraged” the foreign company.
Lillikas, now Foreign Minister, debunked the allegations, saying that as far back as 2003 the Cabinet had on his recommendation expropriated land on which an onshore LNG facility would be built.
“I think Mr Anastassiades’ claims constitute the mudslinging of the century,” noted Lillikas.
“I have instructed my lawyers [Tassos Papadopoulos & Co] to look into the matter with a view to preparing a libel suit against Mr. Anastassiades,” he added.
Government Spokesman Vasilis Palmas dismissed Anastassiades’ claims as unsubstantiated, and called on the opposition leader to produce evidence.
“This is an insult to the President of the Republic and to the Cabinet,” he said.
“It is not the government’s responsibility to disclose the shareholders of any company.
And as I have said before, the President has no ties whatsoever with Tassos Papadopoulos & Co.”
Anastassiades also drew fire from socialists EDEK.
Antonis Koutalianos, secretary of the party’s Central Committee, declared that Anastassiades was the least qualified to talk of scandals.
“The Clerides administration was responsible for the greatest scandals: the stock exchange and the new Nicosia general hospital,” he said.
Meanwhile the Defence Ministry yesterday denied press reports that it had given permits for the construction of an LNG fuel plant in Zygi near a military shooting range.
Commenting on these reports, Anastassiades had said: “Are they trying to blow up the whole country? Mercy.”
Competition Commission gives EAC unions extension
THE COMMISSION for the Protection of Competition (CPC) yesterday gave EAC unions until Monday to respond to possible “interim measures” against them.
The competition regulator is looking into the possibility that the electricity utility abused its dominant position in the market by refusing to provide full services to the public.
On Wednesday, the EAC staged a three-hour strike. With the grid working below capacity, the stoppage affected water pumps, air conditioning units in hotels and large offices. Some villages did not have power for about half an hour.
The EAC unions’ action was in protest at government plans for the floating LNG unit.
The strike was not endorsed by the management at the semi-governmental organisation.
Competition Commissioner Giorgos Christofides said yesterday he had given EAC lawyers until Monday to respond to the charges.
