Scandal involving subsidies for T/C land use sparks outrage

A recent 2022 Audit Office report raises concerns about the use of Turkish Cypriot and state land in Cyprus. Roughly 30 companies and individuals receive substantial subsidies from the Cyprus Agricultural Payments Agency, despite some lacking state contracts.

According to PhileNews, the report discloses troubling figures: 12,955 entities exploit 94,661 land parcels, amassing €7,600,408 in subsidies without leases. Notably, 16 applicants hold Turkish Cypriot land overlapping with state land, getting €272,530.42 annually. Another 15 companies owning 13,068.90 decares receive €438,743.89 yearly.

Moreover, the report identifies cases where some entities receive substantial annual subsidies, with one case reaching €62,830.

This concentration of land without valid lease agreements is deemed unlawful and discriminatory.

In 2022, 17,559 applicants sought areas exceeding 10 decares, totaling 1,230,046 decares, with an average of €1,582 per applicant. Additionally, 12,668 applicants with areas less than 10 decares received over €1.7 million.

The Audit Office recommends comprehensive procedures for the timely identification, monitoring, and recovery of undue payments.

The European Commission's Anti-Fraud Office (OLAF) initiated a preliminary investigation in response to findings by the Court of Auditors. The Court of Auditors emphasizes the importance of mechanisms and safeguards to prevent sponsorships from going to problematic companies, potentially leading to significant undue payments. The Audit Office also recommends comprehensive procedures for the timely identification, monitoring, and recovery of undue payments.

The CFCA currently has €52,457,458 in amounts receivable, with outstanding commitments totaling €102,401,570. The average expenditure per employee is €50,716, increasing to €51,115 when benefits are included.