Cyprus Property: Is the Auditor General’s ‘meddling’ a good thing?

1051 views
3 mins read

.

By Antonis Loizou F.R.I.C.S. – Antonis Loizou & Associates Ltd – Real Estate Valuers & Estate Agents

 

It is by general acceptance that the existing Auditor General is doing a good job.  He seems to be very particular with details and he has no reservations to publish his findings (sometimes earlier and before the full investigation is completed) and referring cases to the Attorney General for legal action.


So, it seems that he is doing a good job and he is the only Auditor General to expose the wrong doings of the Republic over the last 58 years.  On the other hand, the constant threat of legal and other actions and the rush to expose others, have caused a negative effect on decision makers, ranging from Ministers all the way down to civil servants, who are now afraid to take any initiative” on many subjects.

The impression that we get is that the Auditor General is acting on some occasions like a Commissar which causes at times a complex functioning of the Government.  We now have meetings on all subjects that concern civil servants and the meetings will invite the Auditor General to attend, so that they are sure that they are okay with the red tape.  No one is without fault and recent court decisions criticised the Auditor General on his stand on certain matters.  Is it then a good thing to be so strict and generally on all subjects?

Let’s look at some of this disadvantages that we can list:

·         The Paphos desalination plant has been demolished, notwithstanding the shortage of water at Paphos and the original installation promoter might take the government to court for damages.

·         The waste processing plant at Koshi, notwithstanding that it was a con job and that the former Minister of Interior agreed to reduce the charges from EUR 100/ton to 30/ton, the A.G. objected and after paying  for over a year at the highest cost of 100/ton it has now been reduced at the end to 30 (figures are approximate).

·         The Troodos theme park agreed with foreign investors  on all details (save for the rent), but the objection of the Auditor General regarding the rental level was that it that it was set on a temporary basis, and it came to a halt.  The project is now idle.

·         The Paralimni marina has just been awarded to a single tenderer which is now in doubt because the Auditor General has just discovered the rent law.  (So, can the A.G. become a valuer disputing the value of lands, offices, etc.?)

·         The long awaited Larnaca port and marina which is under negotiations after 15 years of waiting and if a conclusion is reached, will the Auditor General come back disputing the legality of the agreement?

·         The Opap betting company is another issue, with some governmental departments saying that the agreement with the state is correct and the Auditor General insisting that it is not.  If the case goes to court the government might stand to pay damages to the company, as this is the result of an inter-country agreement.

·         The much needed Paphos-Polis road is now at a standstill and risks being at the point of non-execution due to the Auditor General’s objection (be it that he has certain valid arguments) and the project is not proceeding.

So, can any group of people report all sorts of ill doings (in their opinion) to the Auditor General who most likely and promptly announces an investigation and starts looking into planning zones, licenses/permits, etc.

If one is to create a table with the pluses and minuses of the Auditor General’s actions, I dare say that he does more good than harm. But could the “harm” part be reduced/limited if we come up with some other idea? For example, we could give the authority to the government to decide on decisions of the Attorney General based on the public interest (this way both sides might be happy).

On the one hand we need foreign investment and on the other red tape and the constant investigations holds back development and interest from investors.

Food for thought?

 

www.aloizou.com.cy

[email protected]