Audit office initiates investigation into Paphos municipality finances

The Audit Office of Cyprus, led by Andreas Papakonstantinou, has commenced an investigation into the financial practices of the Paphos Municipality. Acting Mayor Angelos Onisiforou, currently serving while Mayor Phedon Phedonos is on leave, requested the audit to ensure transparency and accountability. The investigation focuses on alleged irregularities regarding multi-million euro 'compensatory fees' related to urban planning permits granted since 2019. Under this reported practice, developers were directed to pay compensatory amounts directly to other contractors for public utility projects rather than depositing funds into municipal accounts. Marios Petridis, a representative for the Audit Office, confirmed that while Paphos has complied with annual financial statement submissions up to 2023, the ongoing investigation is currently in the information-gathering phase. Further scrutiny is expected, with an audit team scheduled to visit the Paphos municipal offices the week following March 11. Authorities are examining whether these financial procedures were legally executed, with the Ministry of Interior also involved in the review.