Apostolos Tomaras
A string of inconsistencies in how state-owned forest land is leased and managed has been uncovered by the Auditor General of the Republic of Cyprus, raising fresh questions about oversight, environmental protection, and lost public revenue.
According to a special audit report, the Auditor General reviewed the work of the Department of Forests covering the period from 2018 to 2024, while also assessing whether recommendations from an earlier 2017 audit were ever put into practice. The review also examined complaints and cases launched on the Auditor General’s own initiative related to the allocation and management of state forest land.
The findings point to repeated weaknesses in environmental procedures, particularly within protected Natura 2000 areas, including delays or omissions in environmental assessments, poor enforcement of lease terms, questionable interventions, long-term leases to hotel units, delayed revenues, and ongoing court cases.
Taken together, the auditor general said, the findings highlight “the need for a substantial strengthening of leasing procedures, environmental compliance, supervision, and financial management, as well as the adoption of transparent processes for the allocation of state forest land.”
Problematic leases under the microscope
The audit focused on complaints related to leases of state land during the 2018–2024 period and outlines several cases that raised red flags.
Adventure Park in Foini (Natura 2000 area)
One case concerns the leasing of state forest land within a Natura 2000 area in the community of Foini for the creation of an “Adventure Park.”
The company’s original application, submitted in May 2014, concerned an area of 20,000 square meters and was approved by the Cabinet. However, the lease agreement that followed covered double that size, 40,000 square meters.
Auditors found no supplementary application or documentation explaining why the leased area was expanded. They also could not locate the minutes of a meeting between the relevant departments in July 2014, meaning there is no record of how the application was assessed or what positions were taken.
The audit also found that a key lease condition, the immediate construction of facilities, was not respected. Although the agreement signed in 2015 required prompt development, the tenant only applied for a planning permit in 2023. The Department of Forests took no action in response.
Machairas National Forest Park (Natura 2000 area)
Another case involves a lease within the Machairas National Forest Park, also part of Natura 2000, submitted by the association “Friends of the 76th Scout Group.”
According to a Department of Forests announcement in February 2021, a population of the Cyprus grass snake (Natrix natrix cypriaca) , a protected priority species, had been identified at two locations in the area. The species has been flagged by the EU for inadequate protection.
Yet, in an environmental assessment issued by the Department of Environment in March 2021, there was no mention of the protected species. Moreover, as of August 2025, no Special Ecological Assessment had been carried out.
Polemidia National Forest Park
The audit also examined the expansion and construction of new facilities for two special schools on state forest land within the Polemidia National Forest Park.
While acknowledging the public benefit of the project, the auditor general noted a series of unlawful actions and omissions that ultimately led to inadequate protection of the park.
Hotel leases in Ayia Napa
Particular concern was raised over 99-year lease agreements for state forest land in Ayia Napa, signed in the 1970s and 1980s for hotel developments.
The audit found that hotels continue to pay rent based on outdated rates that were in force between 2017 and 2022. The auditor general warned that the failure to adjust rents for more than three years, during a period of strong tourism growth and rising inflation, has resulted in the state collecting far less revenue than provided for under the contracts.
Similar long delays in rent revisions were identified in other cases, some dating back as far as 2008.
Maritime clubs in Limassol and Famagusta
Violations of lease terms were also found at the Limassol and Famagusta maritime clubs, including unauthorized extensions and alterations, sub-leasing, operating cafés open to the general public, and placing advertising signs, all without prior written approval from the Department of Forests.
Delayed revenues top €1.3 million
As of December 31, 2024, delayed revenues owed to the Department of Forests stood at €1.3 million, most of which stem from long-term leases of state forest land.
Nearly €1 million relates to a single hotel unit in the Troodos area, covering the period from 2007 to 2024. The hotel disputed rent revisions, and the matter is now before the courts.
Another €256,993 concerns unpaid fees from annual permits for agricultural and other uses of state forest land in the Famagusta district, covering the period from 2006 to 2022. The auditor general noted that the passage of time makes recovery of these amounts increasingly difficult.
