The Audit Office published a report on the Ministry of Finance — €8.75 million repayment delay identified

The Audit Office published a report reviewing the operations and compliance of the Ministry of Finance for 2023. The audit covered a sample of receipts, payments, and salaries in two general directorates of the ministry; implementation of past audit recommendations and a received complaint were also examined.

According to the Audit Office, a significant delay was found in the repayment of €8,750,000 from the Cyprus Investment Promotion Agency, and this debt was not reflected in the ministry’s register of overdue receipts. Cases were also found of prior years’ receipts being recorded as 2023 income and misclassification of receipts into deposit accounts instead of the relevant budget lines.

The report notes serious concerns regarding the terms of a 15‑year agreement with OPAP and the handling of a €9 million balance related to the cancellation of an intergovernmental agreement. The Ministry is considered to have intervened in KEDIPES activities when managing certain problem loans. Other deficiencies were recorded: payments of allowances to former executives without full verification, costly agreements with the Cyprus Stock Exchange, leasing of premises without final approvals, and delays in flexible employment reforms, which could slow the disbursement of funds from the Recovery and Resilience Plan.

What this means for Cyprus residents: accounting and asset/liability management issues increase the risk of budgetary inaccuracies and potentially affect funding of state programs. The Audit Office recommended improving accounting procedures, reviewing disputed contracts, and aligning practices with market conditions.