A LONG-serving employee of the Electricity Authority of Cyprus (EAC) is under investigation for potential conflict of interest after the authority learnt his wife was connected to a construction company that has won a number of tenders for EAC projects.
EAC spokesman, Costas Gavrielides, yesterday confirmed that civil engineer Giorgios Constantinides was put under investigation after it came to light that his wife was a major shareholder in a company that has been hired by the authority on a number of occasions to undertake construction work.
The employee’s duties involve preparing the specifications for tenders, evaluating tender applications, supervising construction work and also negotiating the extra costs demanded by the tender winner following completion of the project.
According to the EAC’s internal regulations, all personal interests have to be declared before a project is taken on to avoid any conflict of interest. Although both the employee and the construction company have been linked to the EAC for some years, Constantinides first informed the EAC of his wife’s shares in the company last February.
EAC’s General Manager Moisis Stavrou immediately appointed a two-member investigative committee to examine whether any criminal or disciplinary violations had been committed. One member withdrew from the investigation on account of his ‘friendly relations’ with Constantinides.
After his replacement, the committee began its investigations end of March, taking statements and looking at previous tenders. Six months on, and the investigation still continues.
In the meantime, the authority also received an anonymous letter some months back complaining of the alleged conflict of interest between Constantinides and the company which his wife has a professional interest in.
From the moment he was put under investigation, Constantinides was relieved of any duties and responsibilities regarding cooperation with the company. Gavrielides told the Cyprus Mail that once the committee completes its investigation, a report will be submitted to Stavrou who will then pass on the findings to the External Legal Advisor for his opinion on whether there is a criminal case or not.
Once the report and legal opinion are in his hands, Stavrou must use his discretion to decide whether to pass on the case to the Board of Directors for further action, depending on whether criminal or disciplinary violations have been recorded.
The spokesman would not be drawn into the specifics of the case, confirming only that the EAC’s policy was for employees to declare any conflicts of interest. He added: “The EAC has well-defined examination procedures which are currently being followed. The investigation is under way and will be completed accordingly.”
A lawyer speaking to the Cyprus Mail on condition of anonymity explained that even if an employee was found guilty of not declaring an interest, it would have little effect on past decisions as it would prove difficult in court to establish that another decision would have been taken had that person not been part of the tender process. The most that could happen would be a re-evaluation of pending decisions, said the lawyer.
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