THE FINANCE Minister’s refusal to present Parliament with an Accountant-general’s report on the viability of the two state airlines yesterday caused a row at the House Watchdog Committee.
Some MPs viewed the minister’s move as contempt for parliamentary regulations.
Accountant-general Lazaros Lazarou, who along with the Finance Ministry, was in charge of carrying out the viability study, informed the Committee yesterday that he had orders from the ministry not to present the study – despite being asked to do so a fortnight ago.
The reasons, he said, were that discussions on the possibility of merging state airlines Cyprus Airways (CY) and Eurocypria were still ongoing and that the EU was currently in the process of examining recourses involving the €35 million injection the state gave Eurocypria four months ago.
DISY deputy Averoff Neophytou claimed yesterday he had the report and had obtained it from AKEL general-secretary Andros Kyprianou.
“I have the report and I am certain that if it was in parliament’s hands when discussions were held to approve the €35 million, there wouldn’t be one MP who would have approved it,” said Neophytou. “Parliament was misled”.
Although he refused to reveal details, when asked where he had gotten it, Neophytou replied: “Seek my source from AKEL’s general-secretary.”
MPs from AKEL, DIKO, EDEK and the Green Party then reacted, which led Neophytou storm out of the meeting.
Later in the day, Kyprianou said he had obtained the report on May 25, after Neophytou had started criticising the government for not being aware of its content.
“On the same day I handed to the head of the AKEL Central Committee’s Air Transport Office, Stavros Evagorou,” said Kyprianou. He wondered why Neophytou had “intentionally” omitted to give the proper dates, leading people to believe AKEL had been aware of the report before the €35 million was approved.
“Why did Mr Neophytou lie that he had got the report from AKEL? Who did he get it from, seeing that neither Stavros Evagorou nor I gave it to him?” said Kyprianou. He also wondered if Neophytou was following him around “otherwise how is it possible for him to know who I meet with or what they give me?”
Committee Chairman, DISY’s George Georgiou said failure to submit the report was very serious and verged on contempt for parliament. “The Watchdog Committee has a right to seek the results of a study carried out by the state, to justify giving €35 million to increase Eurocypria’s capital.”
Georgiou pointed out that government and state officials had an obligation to submit any documents requested by Parliament. Refusal to do so would result by law in a six-month prison term and/or €300 fine.
After things calmed down, the Accountant-general said it was all a misunderstanding and that the aim wasn’t to prevent parliament from seeing the report but to present it with a complete view once all consultations had taken place.
Regarding the Eurocypria cash boost, the airline’s Chairman Eleftherios Ioannou said the funds had been used to pay off loans, taxes and operational costs.
He said based on the company’s estimates, last year’s €1 million deficit was expected to turn into a €500,000 profit by the end of this year.
“The €35 million was used strictly, based on what we told parliament when the funds were to be approved, which was that the €35 million would put Eurocypria on the correct financial basis and sort out its deficits,” Ioannou added.
Speaking after the meeting, Georgiou said the Ministry had until next week to present his committee with the report.
