THE COMPETITION Commission (CPC) was reeling yesterday after the Supreme Court ruled the appointment of its chairman illegal, along with a €42.9 million collusion fine on fuel companies – a decision set to affect all other cases he has been involved in.
Costakis Christoforou, appointed in April 2008, cleared his desk yesterday as the government said it would wait for the advice of the state legal services to see how it would proceed.
Christoforou’s appointment was unanimously ruled illegal by the Supreme Court on a technicality, in that the state had not done its due diligence to determine whether the appointee had the necessary qualifications as stipulated in the law.
The Cyprus Mail could not reach Christoforou for comment yesterday.
The point had been raised with the Supreme Court by four fuel companies slapped with a €42.9 million fine for collusion in September 2009.
The heaviest fine was imposed on Hellenic Petroleum- €14.26 million, while Exxon Mobil was fined €13.36 million, Petrolina, €12.56 million and Lukoil €2.7 million.
The Court’s decision was based on the argument that neither the trade and industry minister, when he proposed Christoforou for the job, nor the cabinet, when it appointed him, made any reference to his education, experience, career or knowledge – the qualifications set by the law.
“The CPC decision (to fine the companies) is considered non existent now,” said Pambos Ioannides, the lawyer who represented Petrolina in the proceedings.
If the CPC were to insist in going after the companies they would have to investigate the case from scratch in its new formation, Ioannides added.
Legal experts say the decision will affect all the cases Christoforou had been involved in, whether they are ongoing or decisions have been issued.
CPC decisions that have already been appealed will certainly have the same outcome as the fuel company fine.
“It is certain that lawyers will raise the issue … even if the chairman is reappointed properly. All cases pending in court will be ruled void,” said DISY MP Ionas Nicolaou, who was chairman of the previous parliament’s legal affairs committee.
He said cases still pending before the CPC would have to be reexamined from scratch, even if they are at an advanced stage.
It is understood however that decisions, which have not been appealed within the legal timeframe will remain unaffected.
The state’s legal services said yesterday it would study the decision and advise the government accordingly on what actions it can take to comply.
Wednesday’s setback was just one of several concerning the CPC, which has been plagued with problems for years.
In 2007, the Supreme Court again ruled the appointment of CPC member Costis Efstathiou as illegal because he was also mayor of Latsia at the time.
Christoforou’s predecessor, Panayiotis Kallis quit six months after assuming the post, protesting the lack of resources.
Kallis had replaced Giorgos Christophides late in 2007 after the latter resigned as employees at the CPC accused him of setting up cameras to spy on them.
Christophides took the position in 2005 after Christodoulos Tselepos was sacked some four months before completing his term, accused of forging the minutes of a meeting. He was later acquitted by the Supreme Court.
