AGRICULTURE Minister Photis Photiou yesterday urged Parliament to await the results of the Cabinet’s investigation into the proceedings followed during the state’s controversial purchase of two fire-fighter helicopters, before examining the matter further.
The House Watchdog Committee had opened an examination into the proceedings followed for the purchase of two helicopters worth $18.85 million, which eventually weren’t received by as they didn’t comply with the specifications of the contract signed between the state’s Forestry Department and Russian company Kazan Helicopters.
As it was explained during the meeting, the government had signed a contract with the Russian company for the purchase of two fire-fighting, rescue and research helicopters.
But somewhere along the line and following a request by the Forestry Department, the government decided it wanted the helicopters to include further equipment; such as an auto-hover system, which allows helicopters to hover over a fire on auto-pilot.
Exactly when the decision to add the extra specifications and who made the decision remain unclear, which is why the investigation is taking place.
The additions opened a whole new chapter of technical and financial proceedings, which has led to the current catch-22: the state should have received helicopters it paid for last April, but still can’t because the final product will be in breech of the signed contract.
So what will happen to the money the government has already paid?
Photiou explained that there was a penal clause in the agreement, stating that if Kazan Helicopters don’t supply Cyprus with the helicopters within ten weeks of the date the state should have received them (April 9), the company would have to pay the Cyprus government an added 10 per cent of the total price of the purchase.
“But the state can also cancel the contract, though this is something that will first be examined by the Legal Services, then the Auditor-general and then the Cabinet,” he said, adding that Kazan would also have to pay £450,000 in compensation if the helicopters aren’t delivered in time.
Following the minister’s request, the Committee decided to wait until it had all available data and documents before it reopens discussions.
Photiou later assured reporters that the government was prepared for the summer period and the high fire risks it brings with it.
“The government still has the two helicopters we rented last year for two years.”
“There are question marks in the proceedings and that is why the Cabinet has ordered an investigation into the matter, which has already begun,” he said, adding: “I will refrain from commenting further until the investigation is completed.”
