eid contract — eid contract — Deputy Minister Nicodemos Damianou is standing firm against allegations of impropriety related to the awarding of a new electronic ID (eID) contract to JCC, a company he previously managed. He asserted, “nothing wrong was done” during a recent discussion in the House audit committee.
- Looking ahead, plans are already in motion for a three-year extension of JCC’s contract, which will further test the scrutiny surrounding this controversial contract award.
The controversy arose after a comprehensive audit report, released on September 16, revealed that the €3.85 million project was awarded to JCC without a competitive tender process. Auditor-general Andreas Papaconstantinou stated that while there were no alternative providers in Cyprus, European companies could have been invited to submit offers, suggesting that the government should have fostered a more competitive environment to secure better pricing.
Damianou, however, defended the decision, citing the urgency surrounding the EU’s 2026 deadline for member states to implement eIDs. He remarked, “We were already late and subsidising part of the cost, and the only solution was this specific provider.” His assertion came as he addressed why a voluntary announcement was not issued, which would have allowed other companies to contest the decision. He explained that the national eID framework established in 2020 permitted any compliant provider to be licensed without a tender, and that no other businesses had shown interest in the opportunity.
In response to the audit’s findings, Damianou emphasised that the deputy ministry acted with “full transparency, legality, and respect for the principles of fair competition.” He characterised the references to a “special relationship” with JCC as misleading, contending that it overlooked the project’s broader history, including its development with input from Estonian government advisors between 2017 and 2019.
During the committee meeting, MPs expressed the need for clarity and transparency regarding the process. Some members raised concerns about the narrow legislative frameworks that they believed hindered competition, while one MP went as far as to claim that the project had resulted in “wasted millions of euros.”
As discussions continue, Damianou remains resolute, stating, “The right decision was made and I considered this self-evident.” He argued that the council acted correctly under the circumstances, emphasising that the urgency of the situation necessitated swift action.
Looking ahead, plans are already in motion for a three-year extension of JCC’s contract, which will further test the scrutiny surrounding this controversial contract award.
