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The European Public Prosecutor's Office (EPPO) has launched an investigation into the Vasilikos liquefied natural gas (LNG) import terminal project in Cyprus, amid suspicions of public procurement fraud, misappropriation of EU funds, and corruption.
The Vasilikos terminal, intended to connect Cyprus to the broader European gas market, has been plagued by delays and allegations of misconduct. The project, with a total cost of €542 million, includes €101 million from the Connecting Europe Facility (CEF) program and an additional €230 million in loans from the European Union.
The investigation was triggered by a report from the Audit Office of the Republic of Cyprus, published on January 19, 2024, highlighting potential irregularities in the tendering and contract awarding processes. The European Court of Auditors and the European Executive Agency for Climate, Infrastructure, and Environment (CINEA) also forwarded their findings to the EPPO.
Dimensions, a Chinese consortium initially awarded the project, recently abandoned it, further complicating matters. The Auditor General of Cyprus had requested EPPO’s involvement last March, providing a dossier of collected evidence.
In a statement, the Cypriot government affirmed its full cooperation with the EPPO to ensure a thorough investigation and accountability. "No one is above the law, and there will be no compromises on principles of transparency and accountability," the statement read.
The EPPO, an independent EU body, is tasked with investigating and prosecuting crimes against the EU's financial interests. The office will scrutinize the financing and management of the Vasilikos project, seeking evidence of any wrongdoing related to the €101 million in EU sponsorship and the €230 million in loans.
[Summary of Apostolis Tomaras' original story in Greek published in Kathimerini's Cyprus edition]
