In relation to a Decision of the Incompatibility Investigation Committee of yesterday's date published in the media, the Audit Office notes the following:
(a) Pursuant to subsection 7(4) of the Casino Operation and Control Act (124(I)/2015), a person who is professionally engaged in business related to the activities of a resort casino cannot be appointed as a member of the National Gaming and Casino Supervision Authority, among others.
(b) Subject to subsection 7(5) of the same Act, any appointment shall require the prior written consent of the Parliamentary Committee on Energy, Trade, Industry and Tourism.
[C](c) On 2 May 2023, the above Parliamentary Committee rejected the appointment of the Marketing Director of Hermes Airports Ltd which had been recommended by the Cabinet.
[D] Based on statements made by the former Deputy Minister of Tourism on 13.5.2021 in relation to the casino, "the completion of the project will be a benchmark for the tourism industry in Cyprus, as it will create a year-round destination and enrich our tourism product, and is expected to attract 300,000 additional tourists per year". Also, on 30.1.2023, the former President of the Republic had explained that "the creation of a multi-thematic resort was one of the government's objectives, as we knew that its creation would contribute to the enrichment of our tourism product, the increase of tourist arrivals and the creation of new jobs, with obvious benefits for the Cypriot economy. It would not be an exaggeration to say that the casino ushers in a new era for our country, opening up new perspectives that strengthen its position on the international tourist map."
(e) The Audit Office (EO) considers that the interests of Hermes Airports Ltd and the company that manages the casino are clearly aligned. Therefore, in the view of the EO, the management of airports, especially in a country where airports are essentially the only gateway for tourists, is related to the activities of the casino. This is not a legal issue but a real one and as such we call on the relevant parliamentary committee to approach it. EY's submission is that the Compatibility Committee's decision does not differentiate the facts.
(f) EY stresses, even if only in passing, that it does not consider the alignment of the interests of the two companies to be at all negative. On the contrary, it is very positive and it will be beneficial for the country if they are indeed able to attract new passengers and tourists. However, in EY's view, the Marketing Director of Hermes Airports cannot supervise a company with which they have common interests and with which they are expected to develop joint marketing plans to attract tourists.
(MB/EHRP)
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