Phedonos-era Paphos Municipality faces possible criminal referral

Local audit officecorruptionCrimeIndependent Authority against Corruptionlaw officePaphosTop News Phedonos-era Paphos Municipality faces possible criminal referral Audit Office Meeting Puts Phedonos Cases In Criminal Spotlight Relevant News Man barricades himself, threatens relatives with knife and gets disarmed by police 7 July 2026 Police hunt youths after Limassol roundabout tyre fire (video) 7 July 2026 Phedonos-era Paphos Municipality faces possible criminal referral 7 July 2026 Fanis Makrides 7 July 2026 FacebookXWhatsAppEmailPrintViber An Audit Office investigation into suspected mismanagement of public funds at Paphos Municipality, covering a compensatory fees scheme, a smart city contract, and a signature irregularity involving the municipal engineer, could take on a criminal dimension, Phileleftheros understands. Separately, police are investigating two complaints against suspended mayor Phedon Phedonos, one from a businessman alleging non-payment for carpentry work, and another with four aspects, including the alleged unauthorised use of €1.5 million from the municipal employees’ pension fund. This emerged from an extraordinary meeting held on Friday morning at the Audit Office building, attended by Auditor General Andreas Papaconstantinou, Paphos deputy mayor Angelos Onisiforou, and other officials from both the Audit Office and the municipality. According to what emerged from the meeting, if the audit under way since last March reveals possible criminal offences or irregularities relating to financial matters, the Audit Office will formally notify the Attorney General or the Independent Authority Against Corruption. Papaconstantinou himself made this point, according to cross-checked information obtained by Phileleftheros, before Onisiforou and the municipal and Audit Office officials present at the meeting. Should Attorney General Giorgos Savvides be notified, a criminal investigation by police investigators would be likely. Should the Independent Authority Against Corruption be notified instead, this would mean officials come under scrutiny over possible acts of corruption. The compensatory fees According to information obtained by Phileleftheros, considerable time at the meeting was devoted to the matter of compensatory fees, which Phileleftheros first revealed on February 20, 2026. As reported at the time, when a developer sought permission for a planning deviation, such as extra floors on a building under construction, a fee was imposed on them based on a formula, and they were directed to give the money to a contractor, with the expectation that the contractor would carry out public benefit works for the municipality. According to findings and complaints at the time, there was no adequate process for recording the compensatory fees. The money did not pass through the municipality’s accounts. There was also no measurement process to establish whether the public benefit works matched the value of the compensation. Additionally, the money paid as compensation mostly went to a narrow circle of contractors. According to information obtained by Phileleftheros, it was established at Friday’s meeting that the Audit Office does not have the administrative authority to verify whether works said to have been carried out through compensatory contributions and other donations, made outside the municipality’s accounts and accounting system, actually correspond to the amounts that changed hands. In other words, administrative audit alone cannot confirm that all sums exchanged between contractors and other parties involved were converted into works of equivalent value. Phileleftheros previously reported, on March 21, 2026, based on cross-checked information, that Giorgos Savvides and Andreas Papaconstantinou had been in contact over the compensatory fees issue. Smart city contract During the meeting, Paphos Municipality representatives referred for the first time to a specific contract implemented under the Pafos Smart City programme. The reference followed an internal review of records that were not available to the relevant officials before the Audit Office investigation began. Municipal officials committed to sending all relevant data and documents to the Audit Office immediately, so that this case could also be investigated. According to information obtained by Phileleftheros, the contract in question concerns the creation of an application worth tens of thousands of euros. The issue raised concerns both the value of the contract and the conditions surrounding the tender process. Difficulties Discussions at Friday’s meeting reaffirmed the difficulties faced by the Audit Office team in its work at Paphos Municipality. Specifically, reference was made to efforts to collect and assess the necessary data, in some cases no records existed, as well as obstacles from municipal departments in providing all the required information. The meeting also agreed the framework for next steps until the Audit Office’s report is completed. Specifically, a communication process was set between the Audit Office and Paphos Municipality, beginning with the draft report being sent to the municipality so that it can submit its positions, observations and any additional information. The municipality’s responses will be assessed before the report is finalised, and the report will be published together with Paphos Municipality’s relevant positions and responses. According to information obtained, the coming weeks are considered particularly critical, as the administrative audit is expected to be completed and the case’s further course clarified. Signature… on behalf of the municipal engineer The Audit Office team, which has been auditing Paphos Municipality since March 2026, has received various pieces of information that fall outside the rules of good administration. One indicative piece of information brought before them, which is being examined, concerns the responsibilities of the municipal engineer. According to this information, documents that should only be handled by that specific municipal official were signed, irregularly, by another person. Complaint from a timber industry businessman too Police are currently investigating two cases against suspended Paphos mayor Phedon Phedonos. One is being handled by the Paphos Crime Detection Department, the other by the Police Headquarters’ Crime Combating Department (TKE). The first, according to information from yesterday, has not so far come to public attention. This concerns a complaint by a businessman filed with the district’s Crime Detection Department. The complainant claims he carried out carpentry work on behalf of Paphos Municipality but suffered losses of tens of thousands of euros, which he attributes to non-payment of amounts he says he was owed under his agreement. The other case relates to an earlier complaint against the mayor and a municipal official, and has four aspects, according to the complaint: (1) An alleged irregularity involving Turkish Cypriot property, said to have been sublet without authorisation to a private individual for use as a cafeteria, contrary to a Law Office opinion. (2) Five staff appointments at Paphos Municipality, for positions reaching as high as scale A13, allegedly made without transparent procedures. (3) Alleged unauthorised use of a municipal vehicle by the mayor with two municipal employees, who were reportedly paid overtime with public funds. (4) The alleged unauthorised use of €1.5 million from the municipal employees’ pension fund by Paphos Municipality to purchase a plot of land that was transferred to the municipality unlawfully, for the purpose of building student residences. 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