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Israeli Company sues Government

21 January 2013

TAHAL a large multinational Israeli company has built and operates a large water purification plant in Bafra and sells water to nearby hotels and villages.

However, TAHAL has now taken the government to court because it has not been paid for two years.

TAHAL’s case is that the TRNC government signed a contract and that the current government cannot just refute the contract. It has stated that it operates in 50 different countries and has never been treated in this manner. The company now says that it regrets the large investments it has made in the TRNC.

The UBP government has refused to honour the previous government’s commitment and will not be paying the water purification plant’s electricity bills, even though this was part of the contract.

TAHAL chief executive, Itai Stadler said that he was amazed at the treatment that they were getting and would not be making any further investments in North Cyprus. In addition, they would be publicising this shoddy treatment to other Israeli firms.

The current Finance Minister, Ersin Tatar said that the contract was a disgrace and that they would not be honouring it. Mr Stadler has responded by saying that Mr Tatar’s analysis of the situation was incorrect and misleading. He says that TAHAL is a major company that has been operating for more than 60 years in 50 countries. It is not looking for any special favours, just a commercial relationship with the government.

Therefore it has begun legal proceedings against the Water Board which was supposed to pay for treated water on a monthly basis. However, having received no payments for two years, Mr Stadler said that in effect, they had been providing water for free for that period. All their meetings with various officials, including the Prime Minister had come to nothing, he added.

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