Larnaca sewerage board under the microscope

By Angelos Anastasiou

LARNACA mayor Andreas Louroudjiatis’ financial dealings have come under the spotlight, after a court ordered that his – as well as other companies’ associated with the mayor, and construction giant Iacovou Bros – bank accounts be made available to police investigators, daily Politis reported on Thursday.

According to the paper, the bank confidentiality-lifting orders were issued by the court after police managed to demonstrate the probability that the mayor may have been bribed into favouring the company in bids for Larnaca Sewerage Board (SALA) projects.

Sources from the team investigating the case confirmed the court orders to the Cyprus Mail on Thursday, but said they did not concern Louroudjiatis and Iacovou Bros only, but also a number of other individuals involved in the approval of bids for SALA projects.

In addition, investigators were granted permission to obtain their property-ownership status reports from the Land Registry.

Citing unnamed sources, Politis claimed the implication against Louroudjiatis and the company was that the mayor, as well as other individuals, have acquired flats in a particular block in iconic beachfront Phinikoudes avenue in Larnaca.

Last July, Auditor-general Odysseas Michaelides had uncovered a possible conflict of interest as Louroudjiatis had been found to hold shares in a company, in which Iacovou Bros also held a stake.

As well, the Tenders Board that awarded a €7.4 million SALA project to Iacovou Bros in 2013 appears to have ignored a cheaper bid made by rival contractors Cybarco.

The Tenders Board was found by Michaelides to have consulted with a lawyer when examining the bids, but board members claimed to have been unaware of the connection until it was revealed by the Auditor-general.

In a statement on Thursday, Louroudjiatis – ex officio chairman of SALA since 2012 – welcomed the progress made in investigations, saying it was a positive step in stopping the whisper campaign against individuals.

“I was informed by the media that the Larnaca District Court approved a request by investigators probing the SALA case to lift confidentiality of bank accounts, mine among others,” the Larnaca mayor said.

“It is positive that progress in investigations is being made, as everyone’s wish is that they are concluded the soonest, and the findings made public, so that shadows and whispers against people’s dignity and reputation can stop.”

Louroudjiatis claimed to have actively assisted the effort to shine light on this matter by disclosing all his stakes in companies to Michaelides in July 2015, and informing him of his decision to recuse himself from any discussion or decision that could involve these companies.

“At this time, too, the only driver in my decisions is securing the best interests of Larnaca and its citizenry, as well as the voice of my conscience, which I do not feel I have violated,” Louroudjiatis said.