audit office

Swords crossed over Turkish Cypriot properties

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Swords crossed over Turkish Cypriot properties

Interior ministry and audit service are in disagreement over proposed changes to laws regulating the management of Turkish Cypriot properties. The interior ministry believes that allowing Turkish Cypriot properties to be inherited by relatives of refugees residing in them will resolve inequality and feelings of injustice among displaced persons. The ministry also stated that inheritance refers to the license to use the property, not ownership. Auditor-General Odysseas Michaelides expressed concerns that well-off individuals may end up with Turkish Cypriot properties, while homeless refugees may be left without housing. The committee chairman noted that there are reservations about the transfer of properties to non-refugees and potential political issues related to succession.

Parliament misled over 2019 tax legislation, audit office reveals

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Parliament misled over 2019 tax legislation, audit office reveals

The Audit Office has requested a disciplinary investigation from the Ministry of Finance due to misleading statements made by ministry officials to Parliament regarding a 2019 bill proposal by DISY for deferred taxation. The report reveals that a specific banking institution benefited from the legislation, causing significant revenue loss to the state. The Tax Department’s 2022 report highlights that Parliament received incorrect information from the Ministry of Finance officials, resulting in the state losing millions in revenue. The Audit Office believes that Parliament was not adequately informed and was misled about the financial impact of amending the main law. Additionally, the report mentions implications such as converting accumulated losses into credits amounting to €417 million for bank “A” and a guarantee fee payment of approximately €6.25 million to the state. The Tax Commissioner had informed Parliament that no revenue losses were expected, and the Ministry of Finance spokesperson stated that the proposed regulations would have no fiscal impact. The Audit Office has called for an administrative investigation to determine responsible officials and conduct a disciplinary investigation for negligence.

Warehouse flood ruins , €880,000 worth of medicines

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Warehouse flood ruins , €880,000 worth of medicines

– Government officials estimated the damage to medicines in the flooded warehouse at €880,000.

€2.5 billion in unpaid taxes, Audit Office report reveals

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€2.5 billion in unpaid taxes, Audit Office report reveals

– A report found that €2.5 billion in taxes is owed to the state, with €1.1 billion deemed doubtful as to whether it can be collected.
– The Tax Department is dealing with 14,500 cases of taxation under appeal concerning €683 million.
– The department is unable to track non-filing of income tax returns by individuals and companies.
– The department agreed to class as tax-deductible the amount of €1.1 billion relating to defaulting debtors.
– A decision was made by the cabinet to award a no-bid contract for surveys to build extra roofs at the building of the tax department’s Nicosia district office.

Calls for transparency on First Lady, ’s social support fund

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Calls for transparency on First Lady, ’s social support fund

Fact: MPs called for more transparency over the social support fund managed by the First Lady during a House ethics committee meeting.

Auditor-general calls for accountability over Natura 2000 mess-up

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Auditor-general calls for accountability over Natura 2000 mess-up

Fact: Cyprus has been referred to the EU Court of Justice by the European Commission for failures to implement the Habitats Directive in environmentally protected Natura 2000 areas.

Our View: Auditor-general has turned the Audit Office into its own state

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Our View: Auditor-general has turned the Audit Office into its own state

The fact described in the text is that Odysseas Michaelides, the head of the Audit Office, has hired lawyers to fight against government attempts to reform and modernize the audit service.

Financial mismanagement at defence ministry , – report

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Financial mismanagement at defence ministry , – report

The Audit Office found financial mismanagement in the defence ministry and failure to follow safety guidelines in the national guard. One major finding was the failure to sign an agreement with Cyta for services to the national guard, resulting in indirect state aid to Cyta. Safety rules in ammunition depots were not followed, with grenades not being returned as instructed. Inventory cards were marked incorrectly and numerical errors were identified. Personnel were missing from units, with no sign-in sheet kept for shifts.

Paying former presidents to have secretary , ‘problematic’

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Paying former presidents to have secretary , ‘problematic’

The Audit Office has raised concerns about the payment of a ‘personal secretary’ allowance to former presidents and House presidents. The finance ministry stated that the practice would continue as is, despite the concerns. The allowance was introduced in 1988 during the administration of Spyros Kyprianou. Former state officials receive the allowance without actually employing the person declared as their secretary, and in some cases, the declared secretary has self-employed status. The secretarial allowance for former presidents is not taxed, unlike MPs. The Audit Office called on the finance ministry to comply with the law and stop payments where conditions are not met. They also mentioned the possibility of reporting the matter to the anti-corruption authority if necessary.

Former officials can keep pocketing extra allowances, ministry says

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Former officials can keep pocketing extra allowances, ministry says

Former state officials in Cyprus, named by Auditor-general Odysseas Michaelides, including former presidents George Vassiliou and Nicos Anastasiades, and former House speakers Yiannakis Omirou, Marios Garoyian, and Demetris Syllouris, were investigated for allegedly misusing secretarial allowances. The finance ministry stated that these officials do not have to return the allowances as they are legally entitled to them, either to employ a civil servant or hire someone personally for the role. The allowance is set at €39,089 per year. The audit revealed discrepancies in how the funds were used, with some officials not employing a secretary as claimed or pocketing the difference. Specific findings include Vassiliou receiving a total of €709,352 from 2004 to December 2023, with allegations of employing a secretary through a company owned by his family. Anastasiades received €20,396 in 2023, with recommendations to return €11,314 due to overpayment. Omirou, Garoyian, and Syllouris were also found to have discrepancies in their allowance usage, with recommendations for refunds to the state.