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A legal battle has erupted in Cyprus, with the former Commissioner for the Development of Mountain Communities, Giannakis Papadouris, and V.V. Lampadistis Wineries Limited filing a lawsuit against Odysseus Michaelides. The lawsuit, filed in the Limassol District Court, targets Michaelides both personally and in his role as Auditor General during the relevant period. The plaintiffs are seeking substantial damages, including general, special, and exemplary damages, along with several legal declarations.
At the heart of the case is a 2021 audit carried out by Michaelides’ office, which focused on European Union funding given to the Lampadistis Wineries for a project in Kalopanagiotis. The plaintiffs accuse Michaelides of acting with malice and double standards, alleging that he intentionally harmed their interests rather than protecting Cyprus' financial integrity. They also claim that Michaelides violated auditing standards and legal protocols by publishing a report in 2021 that accused the company of potential fraud.
The report from Michaelides' office had raised red flags regarding possible fraud, which led to an investigation by the European Anti-Fraud Office (OLAF). However, in May 2024, OLAF cleared the company of any fraudulent activity, which the plaintiffs argue Michaelides failed to disclose to the public. Instead, the special report left the impression that the investigation was ongoing, tarnishing the plaintiffs’ reputations.
The lawsuit also claims that Michaelides acted without properly consulting the relevant documents or authorities, which they argue undermined the integrity of his audit and misrepresented the findings. The plaintiffs are seeking legal redress for the harm caused, including reputational damage, public defamation, and emotional distress. This case could set a significant precedent in how Cyprus handles allegations against public figures and the integrity of audits involving EU funds.
