Conflict of interest for Larnaca mayor over sewerage bid

By Andria Kades

POLICE are investigating a conflict of interest relating to Larnaca mayor Andreas Louroutjiatis who is also chairman of the Larnaca Sewerage Board (SAL) after findings that a co-shareholder of his at AGI (Larnaka) Cargo Village, won the SAL call for tender.

According to daily Politis, Louroutjiatis had 140 shares at AGI Cargo Village while Iacovou Brothers Constructions Ltd holds 610. The mayor transferred his shares to GP Aviation Supply Chain Solution Ltd on May 22.

Auditor-General Odysseas Michaelides, according to the report, decreed that back in August 2013 when SAL called for tender a €7.4million C12 contract outlining the second phase of the city’s sewerage system, there were no sufficient reasons that backed up the decision to choose Iacovou-Zemco’s bid for tender.

The lawyer that consulted the Tender Board, eventually leading to the selection of Iacovou-Zemco, was also a lawyer for the Iacovou Brothers’ company, indicating yet another conflict of interest.

Deputy SAL manager Giannis Ventouris said they did not know about the lawyer’s connection with the company. “We only found out through the auditor-general,” he told the Cyprus Mail on Wednesday.

Responding to reports that Cybarco was the cheaper option, he said “when we opened the envelopes Iacovou was the cheapest. After an evaluation however it was indeed Cybarco.

“We made our decision based on the lawyer’s consultation.”

Asked under what criteria the choice was made – there had been 10 applications – he said he could not remember as they were hectic times and he had just come into office.

Politis reported that the Tender Board declared the Cybarco offer null following a correction on their documents from the Evaluation Committee. The audit service said the committee was right to not reject the cheapest offer however this was not followed through with the Tender Board.

Louroutjiatis could not be reached for comment.