THE MAIN opposition party yesterday called for the resignation of the trade and industry minister over allegations of dubious procedures in the negotiations for the supply of natural gas.
DISY deputy chairman Averof Neofytou has accused the Electricity Authority (EAC) general manager Stelios Stylianou of trying to destroy a file, which listed a lower target price – set before the negotiations started with three short-listed companies – than the one the sides arrived at in the end.
The price has been set by the EAC, which has a stake in DEFA, the public company handling the natural gas deal. The file in question was kept by DEFA.
Trade and Industry Minister Antonis Paschalides said he did now know about the file’s contents, adding that he would investigate the issue.
“If I were the minister I would have already submitted my resignation,” Neofytou said yesterday.
Neofytou said the minister’s associates – people whom he had appointed – and other subordinates had kept Paschalides in the dark.
“And he (the minister) said he found out through statements and newspapers; If it were me I would have already tendered my resignation,” Neofytou repeated.
He added that he was under no illusion that the government would order an investigation on Stylianou, stressing that parliament would do that instead.
“Parliament has an obligation, a duty; people must find out every detail with full transparency about a mammoth contract done with shady procedures,” Neofytou said.
Stylianou has denied the allegations, accusing Neofytou of smoke-and-mirrors tactics.
The DISY deputy chairman said his party has already asked for the file to be submitted to parliament and Stylianou should be called to answer why he had asked DEFA to hand over the sealed file.
Government spokesman Stefanos Stefanou said the administration did not want to go down the path taken by Neofytou with his daily utterances.
“I am very sorry but we will not follow the road, or better, the downhill, Mr. Neofytou is trying to drag us along,” Stefanou said. “We will remain serious, serving the public interest.”
The spokesman reiterated that no final decision on the matter has been made yet.
EAC chairman Harris Thrassou said there was nothing strange in the price changing during the negotiation.
He said their foreign consultants had advised the EAC to start the negotiation with an “‘X’ price and gradually you will arrive to ‘Y’ price.”
“When you negotiate with three colossal companies simultaneously, you do not lay your cards on the table and give the highest price you will accept,” Thrassou said.
According to information leaked to the media, the target price set by EAC was around $7.0 per million British thermal units (Btu), while the final price agreed with Shell was over $11 per million Btu.
Despite the discrepancy, Shell’s bid of $6.2 billion (€4.6 billion) for 20 years was deemed as the most advantageous of the three offers. The two other companies are BP and BG Group whose offer was $6.8 billion (€5 billion) and $7.0 billion (€5.2 billion) respectively, reports said.
Even with this price the EAC believes it will achieve cuts in the cost of electricity in the next 20 years.
