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A potential case of misappropriation of public funds has emerged involving the Cyprus Radio Broadcasting Corporation's (RIK) Welfare Fund, according to findings from the Parliamentary Control Committee. The investigation centers on the improper management of funds and a lack of legal compliance, which could cost taxpayers millions.
The issue began when €3.6 million, initially intended for a different fund, was transferred to the RIK Welfare Fund in 2020. This money was later used for lump-sum payments to RIK employees and retirees, without proper procedures. Several lawsuits have been filed against the fund, including one from 40 spouses of deceased members who were excluded from the payout. Stauros Papadouris, MP for the Ecologists-Citizens' Cooperation movement, raised concerns that these lawsuits could reveal further misappropriation, warning, "If these lawsuits succeed, the taxpayer will be called to pay the compensation."
A key issue raised was the Welfare Fund’s continued operation without the necessary legal framework. Despite an extension granted by the Registrar of Associations until 2019, RIK failed to align the fund’s management with the 2017 legislation. Parliamentary committee members have called for urgent reforms to bring the fund under proper governance.
Adding fuel to the fire, the Welfare Fund’s Board approved a €4,000 painting gift for the then Minister of the Interior in 2021, which was created by a board member. While some committee members, including Papadouris, denounced this as a "blatant conflict of interest," they stopped short of blaming the minister, noting he was likely unaware of the painting's value. "It is entirely unorthodox for those making decisions to benefit from the funds of those decisions," Papadouris said.
Further complicating the issue, the previous RIK Board President, Giorgos Kendas, confirmed that contributions were being deposited into a special-purpose account, awaiting the creation of a new fund. However, the funds in this account may still face scrutiny. "We’re talking about a substantial amount," Kendas said, referencing over €880,000 held in the account.
The controversy extends to the involvement of former RIK executives, with lawsuits filed against eight individuals, stirring tensions during the meeting. The Control Committee has called for a thorough audit by the General Auditor, with a court order needed to access the funds’ full history.
Zacharias Koulias, Chairman of the Control Committee, emphasized the need for legal reforms: "It has been established that the operation of this Fund with taxpayer money was based on a completely illegal foundation." He stressed that new regulations are crucial to prevent future mismanagement.
Independent MP Alexandra Attalidou echoed concerns over transparency and accountability, urging a full review of how Welfare Funds have been managed since the 2017 legislation change. "There must be no conflict of interest," she said.
The RIK Welfare Fund, established in 1987 to support employees, now faces an uncertain future, with growing calls for legal and financial clarity.
