Angelos Nikolaou
The Ministry of Commerce is moving from extension to extension to the company that undertook the implementation of an investment proposal for the construction of a winery in the community of Kalopanagioti, with the support of the Cyprus Agricultural Payments Organization.
To date, however, despite the continuous extensions from 30/3/2018, which was the final date for the completion of the investment, according to the agreement, the winery has not yet operated. The Auditor General, Odysseas Michailidis, presenting the report stated that the Ministry of Commerce accepted the application, despite the fact that the company had not obtained the necessary Urban Permit for the construction of the project. According to Mr. Michailidis, the company will receive funding of € 1.8 million through the EPSA Measure 3a “Encouragement of investment activity and strengthening of competitiveness in the wine sector”. of Fraud (OLAF).
In addition, the Auditor General called on the Ministry of Agriculture, as the competent authority, and the CSR, to contact the Commission for clarification and guidance on the interpretation and evaluation of a company as problematic, in order to ensure the correct handling of applications and to avoid unduly paid amounts. This is because the Service expressed its reservations and concerns regarding the way in which KOAP and the contractor interpret the term newly established company and the evaluation of a company as problematic.
The director of Industry and Technology, Christos Fotiadis, stated that in the first phase the company incurred expenses in order to create a vineyard and in the second phase it will create the winery. He added that the environment in which businesses operate today is difficult and we have to decide whether we want to help them or kill them.
On behalf of KOAP, Lefteris Dimitriou, explaining the reason for the extensions of the winery, stated that the decision was taken due to force majeure. He stated that this is a mountainous area, where the road network was flooded and with the landslide of rocks there was no possibility to access it. He further stated that the manner of control of companies by the Agency operating in a new sector has been reviewed, in accordance with the recommendations of the Audit Office.
State Aid Control Commissioner Stella Michailidou, when asked to respond to the evaluation of a company as problematic, stated that it does not fall within the areas of activity of her office. He added that the separation of primary sector and processing is problematic. He stressed that the issue should be clarified by a decision of the Commission.
On behalf of the Ministry of Agriculture, Marios Adamidis stated that the vineyards to produce grapes are required for more than 7 years. He added that the primary sector, as long as it is problematic, is excluded from the competition rules. At the same time, he stated that it is common practice to ask for extensions. Angelos Nikolaou
