Newsroom
A reception venue in Nicosia district has continued operating since October 2023 despite failing to meet essential planning and building permit requirements, according to a new report by the Audit Office, which points to persistent failures by state authorities to enforce the law.
The establishment, which operates as a music and dance reception centre, has remained open while the relevant authorities continue examining applications seeking changes to conditions imposed by the Council of Ministers. These conditions were prerequisites for granting the venue a planning permit by way of derogation.
The latest findings come just over a year after the Audit Office first examined the case, documenting how construction had taken place without the necessary planning and building approvals.
The timeline dates back to 2018, when construction began and an application was submitted for planning permission for a reception venue. In March that year, the District Court issued an order suspending the works. A subsequent application for a planning permit by way of derogation was rejected in July 2019.
Construction was completed in 2020, while further applications followed in the years that came after. These included a new planning application in April 2021, covering a reception venue and film studio.
In April 2023, a planning permit was granted by way of derogation. An application for a building permit followed in May, before the permit was granted in September of that year. An operating licence for the venue was also issued on September 6, with the establishment beginning operations on October 1.
However, several requirements remained outstanding. In August 2023, the Interior Minister approved the removal of a demolition condition concerning unauthorised structures. Further applications were submitted in 2023 and 2024, including requests to amend key planning conditions and obtain approval for unauthorised constructions.
The venue's licensing history also became the subject of a political dispute in 2025, following the publication of the Audit Office's initial report.
Former Auditor-General Odysseas Michaelides accused the Audit Office of failing to include information about the original complaint that prompted the investigation, claiming it concerned the alleged involvement of President Nikos Christodoulides.
Michaelides alleged that the venue's owner had entered into a political arrangement with the President. Christodoulides rejected the accusations, describing them as fake news.
The latest report examines whether the authorities took meaningful action following the initial findings. Its conclusion is that enforcement efforts have been insufficient.
According to the Audit Office, authorities issued enforcement notices but did not follow these with substantial administrative or legal measures. No meaningful restoration of legality has been achieved, despite the case receiving considerable public attention.
Six applications and continued delays
The Audit Office points to six planning applications submitted in connection with the development, with the licensing process still unresolved eight years after it began.
It argues that the repeated examination of applications seeking retrospective approval has effectively become a reason for authorities to postpone enforcement action.
The report also identifies problems with the penalties available for planning and building violations. Relatively low fines and lengthy court proceedings can reduce the consequences faced by those who begin construction without the necessary approvals.
Another concern is the practice of withdrawing court cases once a building permit is obtained retrospectively. According to the Auditor-General, this weakens the enforcement of planning legislation and reduces the deterrent effect of legal action.
The outstanding issues include failure to comply with permit conditions, the non-implementation of requirements imposed by the Council of Ministers, delays in processing applications and the lack of the required public green space.
The report also points to unresolved requirements relating to public health and safety, as well as the retrospective licensing of unauthorised structures.
Unfair advantage for those who break the rules
The Auditor-General warns that the handling of such cases creates an uneven playing field, allowing businesses that disregard regulations to gain an advantage over those that follow the law.
The resulting perception that planning and building requirements can be bypassed without serious consequences risks undermining public confidence in state institutions.
The Audit Office rejects the argument that shortcomings in existing legislation can justify the authorities' limited response. It says competent departments must use all enforcement powers currently available to them and seek legislative changes where existing provisions prove inadequate.
Failure to do so allows unauthorised developments to remain in place and creates additional costs for the state, which must repeatedly deal with the consequences of regulatory breaches.
The report concludes that the case reflects serious weaknesses in the state's planning and building control system. Despite years of applications, reviews and official decisions, essential conditions remain unfulfilled and the venue continues to operate.
The Audit Office describes the situation as evidence of an ineffective system in which enforcement is delayed and legal requirements are not being applied effectively.
