Newsroom
Greek-owned construction company Intrakat, which was contracted to build part of the Paphos-Polis Chrysochous motorway in Cyprus, is facing significant financial troubles, leaving behind nearly €1 million in debts to seven local subcontractors and suppliers, according to a report by Dorita Yiannakou in today's 'Oikonomiki'. The debts are tied to payments for work done during the construction project, which has been marred by disputes with the Republic of Cyprus and the Ministry of Transport. These subcontractors are now considering legal action if the company fails to settle its debts by Christmas.
Intrakat, which has been involved in a legal battle with the government over the project’s incomplete work, claims that its financial troubles are due to obstacles caused by the Department of Public Works and the Ministry of Transport. According to the company, delays in material deposits, issues with expropriation, and the department's failure to address crucial issues led to significant project setbacks. Intrakat argues that its debts are directly related to these complications, as it was forced to use its own resources to finance the project and was unable to complete the agreed-upon work.
On the other hand, the Department of Public Works denies any responsibility for Intrakat’s financial troubles. According to Lefteris Eleftheriou, the department’s director, the government has paid the company in full for the work done on the project. He emphasized that the Department has no involvement in the subcontractors' private agreements with Intrakat, and that the company's inability to pay subcontractors is due to their own financial mismanagement.
Despite the legal battles and claims of financial mismanagement, the subcontractors do not blame Intrakat entirely for the project's failure. They argue that the real issue lies with the Department of Public Works, which failed to meet its obligations and caused delays that ultimately led to the project's collapse. The subcontractors remain hopeful that Intrakat will enter a payment program soon to settle their debts.
Intrakat, which has completed only 21% of the work, was contracted to deliver €68 million worth of work over 2.5 years, but only managed to complete €14 million worth of tasks. The company has already taken legal action against the government for damages, claiming over €35 million in losses.
