The Cyprus House Legal Committee has called for new regulations to address a recent surge in public contract cancellations by the government during the latter half of the year. Meeting on Thursday, the committee reviewed a proposal from the accountant-general’s office, which outlined several adjustments aimed at streamlining the approval and amendment processes for public contracts.
Among the proposed reforms is the assignment of a “contract coordinator” from an alternate contracting authority, as well as enhanced requirements for on-site inspections and clarified guidelines for contract termination protocols. The scientific and technical chamber (Etek) recommended ensuring that on-site inspections are legally sound and carried out by an impartial body.
The accountant-general’s office emphasized that these changes would allow for greater flexibility in adjusting public contracts and would help government authorities operate more efficiently. Another suggestion was to limit the central committee’s role in approving amendments only to contracts exceeding €100,000, allowing the head of the contracting authority to manage smaller amendments. This change could potentially reduce the central committee’s workload by one-third, bringing it from 900 to 600 cases per year.
Additionally, the audit office proposed that the government publish a “termination report” for each canceled contract, enhancing transparency. While the Employers’ and Industrialists’ Federation (OEV) acknowledged the importance of these updates, they expressed disappointment over the lack of direct consultation in the process.
Disy MP Nicos Tornaritis, chairman of the legal committee, stated that the matter would be revisited in two weeks, with invitations extended to key officials, including Finance Minister Makis Keravnos, Transport Minister Alexis Vafeades, and Accountant-General Andreas Antoniades. Tornaritis emphasized the need for sustainable reform to protect taxpayer funds, noting, “This issue drains public funds, and we aim to establish practices that defend every euro spent on behalf of the Cypriot taxpayer.”
Further input was requested by Akel MP Aristos Damianou, who called for the presence of a legal service representative to assist with upcoming discussions.
The meeting took place in light of a recent wave of public contract cancellations, including projects like the Paphos-Polis Chrysochous road and the Liopetri river development. Earlier, contracts for the Vasiliko LNG terminal and Larnaca marina were also revoked. Transport Minister Alexis Vafeades attributed the terminations to issues with previous government contracts awarded to unsuitable firms.
While some committee members echoed Vafeades’ sentiments about the former administration, Akel MP Valentinos Fakontis urged the current government to take accountability, stating that despite past missteps, the incumbent administration should no longer be a “spectator” to ongoing terminations after 18 months in power.
Source: Cyprus Mail