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Thursday, May 23, 2024

Cyfield is rubbing its hands – With a “mistake” by the SAL, a guarantee amounting to €1.7 million was released.

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ΤρΙβει τα χΕρι&alpha τσ –λ»σλε υθερκε εγυτικor yψος €1.7 εκ .

By Alexia Cafetzis

It is the responsibility of the Nicosia Sewerage Board that the guarantee of €1.7 million was not renewed for two large contracts for drainage projects carried out in Kokkinotrimithia and Paleometochos.

The specific projects were completed in 2014, but were not closed due to serious outstanding issues and claims of tens of thousands of euros requested by the Nicosia Sewerage Council from the project contractor, which is Cyfield Enginnering & Contstracting and which contractor did not accept.

As a result, the contractor, after the warranty was not renewed, had to rub his hands, after proceeding with its liquidation and the SAL was left exposed without any coverage and in a disadvantageous position in relation to the claims for many bad works and claims of several tens of thousands of euros.

The warranty, which was renewed every year, along the way was renewed every six months and then every three months, while finally the “mistake” was made and was not renewed at the end of December 2023, as a result of which the contractor liquidated €1.7 million without no further commitment to SAL, which remains irreparably exposed.

The legal advice and guidance of SAL's lawyer was also sought as to how the Agency can now proceed with the handling of the two contracts in order to ensure , if they can be secured, the interests of the SAL.

However, serious issues of contractual obligations and legality appear to be raised, with SAL members seeking legal guidance from their legal counsel who is the law firm Achillea Emilianidis.

Let us note that the release of the guarantee of 1.7 million is under the microscope of the Audit Service.

They are unreasonably obstructing in the hiring of an internal auditor

In SAL there is no internal auditor despite the fact that it is an Organization, which handles multi-million euro projects. There is a Council decision from 2021 to hire an Internal Auditor.

The position was announced in February 2022, there was great interest, written exams were held by the University of Cyprus, all procedures were carried out and the list of successful candidates was prepared , but to date, for unknown reasons, for which the Organization's management should provide explanations, the process of hiring an internal auditor has not been completed.

If the Organization had an internal Audit Service, we might not have reached to the “mistake” of not renewing the warranty.

Source: 24h.com.cy

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