Debate over municipal pension fund usage in Paphos

The Paphos Municipal Council branch of the Democratic Rally (DISY) has formally rejected allegations regarding the 'illegal' use of €1.5 million from the municipal employees' pension fund. The party clarifies that the council legally authorized a loan of €1.16 million on March 16, 2022, to purchase land for student housing. According to DISY, this decision followed consultations with the Registrar of Occupational Retirement Benefit Funds and includes a 3% interest rate, with full repayment scheduled by 2027. Conversely, an official complaint was filed with the police in April 2022 and submitted to the then-Auditor General Odysseas Michaelides in April 2023, alleging illegal misappropriation of funds without consent. Unions representing municipal employees expressed written concerns to the authorities in early 2022 regarding the transaction. While Mayor Phedon Phedonos has previously defended the process as lawful, the matter remains under scrutiny by the Attorney General's office.