In a damning indictment of public sector mismanagement, Cyprus’ Auditor General has exposed a €1.5 million renovation project without public tenders, without proper permits, and astonishingly, without a signed contract — and it’s the taxpayer picking up the tab.
The project, which was supposedly part of a broader modernisation of local government, saw construction kick off at the former Nicosia Water Supply Council (SYL) building.
A deal done in the shadows
According to investigative reporting by Kathimerini’s Apostolos Tomaras, the €1.5 million contract was handed directly to a contractor without any competitive process. The renovation was aimed at housing the new Development Licensing Directorate under the restructured local authorities.
But instead of following proper procurement procedures, officials fast-tracked the deal under a legal loophole intended for genuine emergencies.
Except — there was no emergency!
Construction before permits, contracts after completion
In a revelation that should shock every law-abiding taxpayer, the Auditor General’s report shows that construction work had already begun when the required planning and building permits were finally submitted — in April 2024. By then, builders were already hammering away, and shockingly, the building was in use before any formal approval was even sought.
Even more brazen? The contract itself wasn’t signed until 4 June — when the project was already nearing completion. One day prior, the no-bid contract was officially approved, effectively rubber-stamping a process that had already spiralled well outside the bounds of legality.
“At their own risk”?
The contracting authority’s excuse? That the contractor had “taken the initiative” and started early at their own risk. The Auditor General rightly wasn’t buying it. No written instructions. No go-ahead. No legal basis. Just a shrug and a €1.5 million invoice.
And surprise — the contractor came out on top. With the building nearly done, they had all the leverage when it came time to negotiate costs. The final bill swelled to €1.54 million (excluding VAT), roughly €200,000 more than initially budgeted.
Fast-track fees and phantom justifications
To make matters worse, the authority agreed to pay a €100,000 “fast-track” fee — nearly 6% of the total project cost — despite the fact that speed had already been achieved by ignoring the rules. Another €7,700 went to engineers for last-minute design and supervision work, again under the banner of urgency.
Yet no economic impact study was ever conducted to justify the mounting costs. The estimated cost of housing the Development Licensing Directorate has now ballooned to four times the original estimate.
Not a one-off — a rotten pattern
This isn’t a rare misstep. The Auditor General warns that this sort of rule-bending is becoming standard practice in Cyprus. Public projects are increasingly bypassing open competition, often under the same dubious justification of “urgent need”.
What we’re witnessing is not just bad governance — it’s a systemic erosion of accountability.
This case should be a wake-up call. Cyprus cannot afford a public sector that treats laws as optional and taxpayer funds as a blank cheque. If modernising local government means bulldozing public trust along the way, then we’re heading in the wrong direction.
This is Cyprus, through & through, nothing will ever change. Was the contractor related to anyone handing out the ‘contract’?
How can obtain an exemption from paying taxes whilst the government is going thru a corrupt mismanagement phase ?
You cannot get an exemption from paying taxes.