Dispute on natural gas culminates
Dispute on natural gas culminates
23/10/2007 14:05
The House Audit Committee’s session continued on Tuesday with a new dispute between DISY President, Nicos Anastasiades and Commerce Minister, Antonis Michaelides on the transfer of the natural gas to Cyprus. Mr. Anastasiades said that in his many-paged report the Minister failed to answer to his questions on the cost of the study carried out by Kellogg (the study was interrupted), the cost of the new study, as well as the cost of separation of the two terminals for the natural gas and the oil. He also referred to the cost of expropriation and the cost of safe-keeping the strategic stock of Cyprus abroad.

On the other hand, Mr. Michaelides supported that he gave all necessary explanations, stressing that if the Committee is not satisfied by his answers, he can hand in his resignation. Mr. Anastasiades said that his comment was arrogant.

The Minister also said that Kellogg has received the sum of £1.9 million for its services but it never received the remaining sum of £400 thousand due to the interruption of the contract. According to Mr. Michaelides, the contract was interrupted after the legal service’s advice that it was not to the benefit of the state to get involved in long legal proceedings.

Mr. Anastasiades said that the Attorney General was enforced to give this advice due to the Ministry’s bad manipulation. General Auditor, Chrystalla Georkatzi, said that if it had been proved that Kellogg could not respond, the contract should have been denounced so as to keep the guarantee of 10% of the total cost of the contract of £6.7 million and the sum of the payment in advance.

Manager of the Energy Service, Solon Kasinis said that the new studies and the surveillance will cost £15 million.

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