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Cyprus’ Audit Office has raised concerns over the way the Deputy Ministry of Research, Innovation and Digital Policy handed a €3.85 million contract for the issuance of 100,000 electronic ID cards to a private company without holding an open tender.
The audit, released by Auditor General Andreas Papakonstantinou, focused on the decision to directly award the contract in October 2024, with the ministry citing a lack of other companies with the necessary certification to carry out the project. However, the report notes that companies from across the European Union could potentially have participated had a standard open tender been held, possibly leading to a more competitive price.
“The need for these ID cards was known well before the legislation allowing their issuance was passed in 2021, so the claim of urgency does not hold,” the audit said.
A particular concern highlighted by the report was the close connection between the deputy minister and the company selected for the contract. The deputy minister had previously served as the executive director of the firm, raising questions about impartiality. The audit suggested that even if an open tender was skipped, a voluntary announcement could have been made to allow other companies to submit objections or offers.
The contract, initially set at €3.9 million, was slightly reduced by €50,000 following negotiations, bringing the final total to €3.85 million. The project officially began on January 20, 2025, but by the time of the audit, fewer than 10,000 ID cards had been issued, even though applications for the first 30,000 were free.
Papakonstantinou emphasized that while the Council of Ministers had approved the proposal in October 2024, responsibility for ensuring competitive procurement lies with the ministry’s tender board, not the cabinet.
