The Nicosia district court has ruled that the government is not responsible for repaying the debts of the Kofinou abattoir, the legal service said on Tuesday.

The decision, issued on January 21, affirmed the stance of the attorney-general that sought to clarify the limits of the state’s financial obligations regarding the defunct abattoir.

The case arose after a creditor summoned government officials to court to determine the state’s ability to settle the abattoir’s debts.

However, the attorney general intervened, applying to quash the summons. The court ruled in favour of the state, citing a European Commission decision, which ordered Cyprus to recover state aid previously granted to the abattoir.

The Kofinou abattoir, once a key facility in Cyprus, faced financial troubles linked to mismanagement and inefficiency.

In 2014, the cabinet appointed the official receiver as the liquidator of the abattoir, marking the start of a lengthy process.

According to the Nicosia court, the government’s role is confined to enforcing the European Commission’s directive, which mandates the recovery of state aid with interest. The judgment clarified that the liquidator is responsible for resolving the abattoir’s financial liabilities.

“Once the cabinet defined the liquidator’s duties, the state ceased to have a say in the abattoir’s financial affairs and must await the outcome of the liquidation process,” the judge said.

State lawyer Penelope Charalambous successfully convinced the court to uphold the government’s position, relieving it of direct accountability for the abattoir’s financial woes.

This decision underscores the autonomy of liquidators in such matters and reaffirms the legal framework governing state aid recovery in compliance with EU directives.