The director of Cyprus’ Department of Forests, Savvas Iezekiel, has filed a complaint with the Police Criminal Investigation Department against construction company Cyfield, alleging fraud following the company’s decision to terminate its contract for works in Akamas.
The complaint comes one year after work was suspended on three main forest roads within the Akamas National Forest Park (NFP): Aspros-Lara, Toxeftra-Avakas-Lipati, and the Lara circular route.
Following Cyfield’s contract termination on 23 December, the Republic of Cyprus lost approximately €1 million in guarantees, comprising a €629,500 performance bond and a €314,750 advance payment guarantee. These guarantees had been continuously renewed until 15 December 2024.
The Department of Forests had requested the renewal of these guarantees before the contract termination but did not approach the bank to liquidate the two cheques in case of non-renewal.
Cyfield, which remains unpaid for completed works in Akamas since the suspension of operations in December 2023, had warned in a letter dated 22 October 2024 that the guarantees would be renewed until 15 December 2024 for a period of one and a half months, which it considered a reasonable timeframe for both parties to reach an amicable solution.
Responding to the Forest Department’s actions, Cyfield owner Kyriakos Chrysochos said the company terminated the contract on 23 December 2024 following a written request from the Department dated 6 June 2024. He noted that a meeting held on 12 June 2024 with the forest director was cut short due to a fire emergency, with no subsequent meetings taking place.
According to Chrysochos, the contract termination was prompted by two factors: the extended work suspension since December 2023, which exceeded the contractually agreed 84-day period, and the non-payment of €214,679 from a total outstanding amount of €500,000 within the stipulated 56-day timeframe.
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