A SERIES of significant questions were raised in Parliament yesterday when the Auditor-general presented her annual report on a number of semi-government organisations.
Chrystalla Yorkadji, who was invited to present her findings to the House Watchdog Committee, referred to the budget of the Dairy Industry Organisation, which had provided funding for pig farmers who were affected by the measures taken for foot and mouth a few months ago. She said a number of serious questions, weaknesses and problems were spotted in the procedures that were followed, when thousands of animals were culled and pig farmers were compensated.
Yorkadji said the problems had to do with animal culling, compensation given to pig farmers and even issues that have to do with public health, such as the sale of frozen meat following dubious proceedings.
The data prompted the Watchdog Committee into calling for a meeting with the Diary Industry in two weeks’ time.
Regarding the Cyprus Telecommunications Authority (CyTA), Yorkadji found that the semi-governmental organisation had a special fund for premature redundancy, which offers the full wages an employee would have earned until their retirement, tax-free.
Such compensation, she said, could only be justified if the redundant employee was not only considered unhelpful to the company, but also caused the organisation damages.
Referring to the Cyprus Broadcasting Channel (CyBC), the Auditor-general said its budget was showing a £1.4 million deficit and without the government’s help, it would have to shut down.
Yorkadji also referred to a recent report by the Cyprus Broadcasting Authority, which said the CyBC did not offer balanced services when it came to public broadcasting. She added that the CyBC failed to maintain separate accounts, as was its duty for 2007, for its public service expenditures and business activities, which meant it was not possible to monitor whether the state funding the channel received was used for the intended purposes or business ventures.
Moving on to the Electricity Authority of Cyprus (EAC), the Auditor-general said a series of problems were spotted in the organisation’s tenders’ procedures and collective agreements. The EAC, she added, had not paid sufficient attention to reducing its expenditures.
Yorkadji suggested that the EAC’s tax contributions be reduced from 25 per cent to 10 per cent, as is the case with all other private businesses.
The Cyprus Sports Association showed discrepancies in its criteria on sponsoring sports arenas, its management of tenders and its management structure.
Yorkadji called on the government to intervene on a specific example, whereby a CSA official applied for early retirement and was granted €70,000 extra in benefits, without there being a relevant regulation.
