Telecommunications company Cyta is moving ahead with a study on the creation of a new data centre, amidst interest from a total of ten companies, according to Cyta chairperson Maria Tsiakka.
It was noted that eight of these companies expressed interest during the initial stages of this endeavour, while the other two emerged at a later time.
Addressing the House Committee on Public Expenditure Control on Thursday, where Auditor General Odysseas Michaelides’ report on the organisation was discussed, Tsiakka mentioned Cytas pursuit of a strategic partner for the project.
She explained that this partner would invest in the venture, in which the organisation itself would hold a 51 per cent stake, with the government being a potential client.
Regarding this project, Michaelides noted that the initial feasibility study was commissioned by a private company, identified in the study as a potential collaborator of Cyta.
According to Michaelides, this study was examined by Cyta’s previous board of directors, before being subsequently withdrawn when the Audit Service decided to scrutinise the matter.
Until the investigation began, Cyta was negotiating with this company. And they backed off when we stepped in, the Auditor General stated during the session.
In response, Tsiakka stated that the establishment of the data centre is a decided matter for the board of directors.
She added that following a tender process, it was entrusted to an auditing firm specialising in this field, tasking it with preparing a relevant study and approaching companies for participation in the project.
She said that 39 companies were approached, out of which eight showed interest. However, she noted that there was ultimately no interest, as Cytas conditions required companies to invest in the project themselves, bring clients, and provide expertise to Cyta.
We discussed it at a meeting with the board of directors and decided to give instructions for the update of this study, to re-approach the 8 plus 2 companies which expressed interest, she said.
She noted that once a strategic partner is found, Cyta will conduct a feasibility study of the project.
Moreover, Tsiakka stated that Cytas scheduled investments are focused on the data centre and promoting the organisations sustainable development, mainly in meeting energy needs through renewable energy sources.
During the presentation of his report, Michaelides described Cyta as a fundamentally healthy organisation operating in an oligopolistic sector.
In addition, the Auditor General directed criticism at the previous board of directors, which, as he said, gave the impression that Cyta was soaring”, claiming that they made themselves to look like “magicians and miracle-workers”, who “expect to have statues erected in their honour”.
He also referred to very serious issues that have been identified, which, as he said, resemble the wrongs of the past”.
He referred to the submarine data cable EMC, in which Cyta had decided to participate along with Greece and Saudi Arabia.
He said that a newly established company is part of this project, whose director is an individual with political connections”, implicating Disy and former president Nicos Anastasiades.
He also claimed that this individual, whom he named during the session, contributed almost nothing and was found to have €50 million in his pocket as a gift. He also noted that Cyta withdrew from the project when the Audit Service examined it.
Cyta rejected Michaelides’ claims.
Tsiakka said that Cyta withdrew from the project for business reasons, as the financing terms changed, which the organisation deemed unacceptable.
We had no political interventions in the project, we became involved for business reasons and exited for business reasons, she said.
On the other hand, Cytas Chief Executive Officer Andreas Neocleous described the project as significant, as it will bypass the only route of cables passing through the Suez Canal.
He added that Cyta withdrew because very strict participation terms were set.
“The remarks of the Auditor General have nothing to do with us, as we are lawful and have legal opinions that everything was legal, Neocleous said.
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