The case of compensatory fees that vanished between developers without ever reaching Paphos Municipality’s coffers has already drawn the attention of two of the state’s most senior officials.
According to cross-referenced information, Auditor General Andreas Papaconstantinou met with Attorney General Giorgos Savvidis to discuss these very controversial practices. A competent official clarified: “There will be coordination between them when findings emerge.”
The unprecedented scheme worked as follows: when a developer sought a planning relaxation or deviation, instead of paying compensatory fees into the municipal treasury, the money was directed to another contractor who would — in theory — carry out public works.
Amounts ranged from tens of thousands to hundreds of thousands of euros, with at least one case exceeding one million. Recipients were just 2-3 specific contractors, and the number of related permits reaches approximately 150.
The Audit Service has not yet launched its formal audit of Paphos Municipality, but is already evaluating initial evidence. Should criminal suspicions be confirmed, the Attorney General is prepared to instruct police to begin a criminal investigation.
