**Damning Audit Report Questions Limassol Municipality Overtime Payments**
A recent audit report from the Audit Office has raised serious concerns regarding staffing practices and overtime payments at the Limassol municipality. Released on Tuesday, the report highlights a pattern of practices that could expose the municipality to significant financial and legal risks. The compliance audit examined personnel management from January 2022 to June 2024, while also reviewing practices dating back to 2017.
Auditor General Andreas Papaconstantinou emphasized that the issues identified are not isolated incidents but rather indicative of a long-standing deviation from the legislative and regulatory framework governing municipal operations. He stated, “The problems in the management of human resources are not isolated failures,” underscoring the need for adherence to the principles of legality and good administration.
One of the most alarming findings of the report is the dramatic increase in overtime expenditure. The municipality's overtime costs surged by 176 percent, escalating from €492,563 in 2017 to nearly €1.4 million in 2024. This rise occurred despite repeated assurances from the municipality that measures were being implemented to control costs. The audit revealed that many overtime payments were made without prior approval, lacked verification through the electronic attendance system, and were issued in violation of existing regulations.
Among the specific cases highlighted, one senior official received €114,784 in overtime payments between 2017 and 2023, which were disbursed at the full rate rather than the 60 percent ceiling established by a government circular. This approval was granted by the then-mayor Nicos Nicolaides rather than the municipal council, raising further questions about governance and oversight.
The report also criticized various staffing decisions made in disregard of legal advice. For instance, four traffic wardens were reassigned to the position of ‘assistant clerical officers’ and granted personal salary scales, despite legal counsel indicating that such transfers could only occur if the entire traffic warden category was abolished. Similar irregular salary arrangements were found for other employees, highlighting a pattern of non-compliance with legal standards.
Additionally, the municipality has been criticized for relying on service contracts to meet permanent staffing needs, effectively circumventing established recruitment procedures. Some of these contracts have been in place for over 30 months, leading to six individuals being classified as employees of indefinite duration by social insurance services in 2024.
The audit report also pointed out deficiencies in job schemes, with the municipality failing to provide published schemes for all positions. In some instances, existing records did not align with salary scales, and the available documentation did not rule out the possibility of appointments or promotions occurring outside the prescribed framework.
Concerns were also raised regarding financial benefits paid to staff. The audit indicated that collective agreements continued to provide allowances that exceeded those stipulated in the municipality’s regulations. Notably, an Easter payment equivalent to 82.93 percent of basic salary was identified, costing an estimated €1.9 million between 2022 and 2024. Expenditure on allowances increased from €112,641 in 2021 to €162,038 in 2023, indicating a trend of escalating costs.
Further issues were noted regarding outdated attendance recording systems and the inappropriate use of official vehicles for staff transportation to and from their homes. The report also highlighted a concerning instance where €9,823 was approved in compensation to a retired senior official for accumulated leave, despite regulations prohibiting such payments.
The internal audit branch of the municipality was also scrutinized, with the report stating that allowing the mayor or municipal secretary to assign investigations compromises the auditor’s independence and conflicts with both municipal legislation and international auditing standards.
In light of these findings, the Audit Office has recommended that the municipality properly document employee benefits and ensure compliance with recruitment and overtime regulations. Papaconstantinou warned that “piecemeal and unstructured decisions” could foster a culture of poor administration and undermine the municipality’s financial management.
As the Limassol municipality grapples with these findings, the implications of the audit report may prompt significant changes in its operational practices and governance structures to restore public trust and ensure compliance with legal and regulatory frameworks.