Cyprus Ex-Officials Cleared on Allowance Use Despite Audit Queries

Finance Ministry Stance on Secretarial Allowances for Former Officials

In a recent statement, the finance ministry has clarified its position regarding the controversy over secretarial allowances received by former state officials. Despite the audit office’s allegations of misappropriation, the ministry maintains that these individuals are not obligated to return any funds.

The audit, initiated by Auditor-general Odysseas Michaelides, scrutinized the social insurance statements of personal secretaries to five former officials, including George Vassiliou and Nicos Anastasiades, and former House speakers Yiannakis Omirou, Marios Garoyian, and Demetris Syllouris. The investigation suggested discrepancies in employment durations and payments, raising concerns over potential financial misconduct.

However, the finance ministry countered these claims, emphasizing that the allowance is legally established and that recipients have the option to either appoint a civil servant or personally hire a secretary. All five officials in question opted for the latter. The ministry also noted that previous cabinet discussions had occurred regarding the allowance structure but ultimately decided to maintain the fixed monthly amount of €3,000.

The annual allowance for these positions totals €39,089. The audit service’s findings, which sparked parliamentary debate, indicated that some officials might not have used the funds as intended. For instance, former President Vassiliou received €39,089 in 2023 and a cumulative €709,352 since 2004 for secretarial employment. However, the audit revealed that the declared secretary was actually employed by a company connected to Vassiliou’s family.

Michaelides recommended halting payments to Vassiliou until he hires an actual private secretary. Similarly, concerns were raised about the other officials’ use of the allowance. For example, Anastasiades was advised to return €11,314, while Omirou and Garoyian were alleged to have pocketed excess funds. Syllouris, entangled in a separate scandal, also faced scrutiny over his allowance usage.

The finance ministry’s response underscores the legal framework governing these allowances and suggests no immediate changes to the policy despite the audit office’s recommendations. The situation continues to unfold as discussions and analyses of the audit’s findings persist in the public sphere.

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