10 May 2022 INSIDER • GOAL • IN-CYPRUS • PROPERTY • CYPRUS-IS • CAREER LIKE • GOING OUT • XRYSES SYNTAGES • ACTIVE • PHILGROUP NEWS & nbsp; SOCIETY & nbsp; INSIDER & nbsp; OPINIONS & nbsp; GOING OUT & nbsp; CULTURE & nbsp; SPORTS & nbsp; AUTO & nbsp; GOOD LIFE & nbsp; USEFUL & nbsp; PRINTED EDITION & nbsp;
& nbsp & nbspTheano Thiopoulou & nbsp; & nbsp;
To the Attorney General, in order to investigate the possibility of civil liability or the commission of criminal offenses by any person, the Audit Office promotes the special report on “control over the investment of the Cyprus Telecommunications Authority in the subsidiary Cyta Hellas Telecommunications”.
In the report, the Audit Office states that “based on the information presented to us and the audit we carried out, we conclude that the investment in Greece, through CytaHellas, was not exercised, by the Board of Directors and the management of CytaHellas, due diligence and professionalism that would be expected, in order to safeguard the interests of CYTA and, consequently, of the state. The careless, erroneous and in many cases irregular handling eventually led to the realization of a huge loss from the whole project, estimated at over € 150 million. “
It is worth noting that the investment in Greece was sold in 2018.
The most important findings in the report are, among other things, the capital needs of CytaHellas and, as mentioned in the report, they were significantly undervalued and constantly changing, with the result that the investment had started in 2007 with a share capital of € 15 million and ended, ten years later, in a share capital of € 165.5 million. Indicative of the rough and tumble plans, according to the Audit Office, is the fact that, less than a year after the establishment of the company, additional financing needs of € 72 million arose. due to modification of the business plan, for nationwide expansion. CytaHellas' business plans, the Audit Office notes, were constantly modified, in some cases over months or even days. A common element of all the plans, it is reported, was the presentation of continuous significant negative deviations, in relation to the actual results. Regarding the excess of power and decision-making outside the defined legal framework, the report of the Audit Office notes that in many cases, guarantees were provided to third parties by CYTA, in favor of Cyta Hellas, for most of which again the legal approval of the Minister of Finance had been secured.
The Audit Office notes that CytaHellas, although having the financial support of ATHK over time, repeatedly wrote a negative course, which led to the decision to sell its shares. The sale took place on 23.1.2018, with the signing of the sale agreement of CytaHellas to Vodafone-Panafon Hellenic Telecommunications S.A., for an amount of € 38.56 million. In addition, based on the agreement, the buyer paid an additional amount of € 57.56 million for the repayment of loans of CYTA and other subsidiaries to CytaHellas, as well as € 3.53 million for IPv4 (Internet Protocol Version) licenses belonging to CYTA and were necessary to continue providing its services to CytaHellas . At the same time, the buyer undertook the repayment of CytaHellas's liabilities to third parties, amounting to € 18.45 million. The above resulted in a huge loss for CYTA and therefore led to a serious loss of public money, the report states. >
Profit increase in 2020
The surplus before tax amounted to € 78.8 million from 70.9 million in 2019, while its net profit amounted to to € 70.8 million from € 61.1 million. Its revenues amounted to € 359.8 million from € 362.2 million in 2019, revenues from services amounted to € 349.4 million from € 352 , 5 million, operating expenses decreased to € 268.4 million from € 280.5 million and expenses for salaries amounted to € 12.9 million from € 11 million. The number of employees on 31.12.2020 was 1,602 people, expenses for salaries, allowances and employer contributions € 95.11 million, the average cost per employee € 59,370, the average cost per employee including benefits € 62,649.