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Police have arrested Stella Michaelidou, the 66-year-old president of the Support Centre for People Living with HIV/AIDS (K.Y.F.A.A.), amid serious financial fraud charges.
According to 24News' Stella Markou, Michaelidou was taken into custody on Monday, December 9, and appeared before the Nicosia District Court on Tuesday, which ordered her detention for eight days.
Michaelidou faces multiple criminal charges, including forgery, circulation of forged documents, securing money by false representation, and conspiracy to commit fraud, among others. The charges relate to a financial scheme that reportedly ran from 2021 to 2023, involving falsified invoices submitted to the Ministry of Health.
Stella Michaelidou - President of the Board of Directors of KYFA
Authorities say Michaelidou and her organization obtained over €122,000 through fraudulent means, submitting 51 falsified invoices to the Ministry of Health in order to secure funding for the NGO's activities. The Ministry became suspicious after an official noticed that the VAT rates on the invoices did not match the standard 19% rate. Further investigations revealed discrepancies, leading to the formal complaint.
The scandal deepened after Michaelidou allegedly pointed the finger at a deceased Ministry official, claiming that the official had confessed to her that it was the deceased who had falsified the invoices. This revelation has raised questions about the transparency of the funding process for the NGO, which has been a major player in the fight against HIV/AIDS in Cyprus.
The funding process required K.Y.F.A.A. to submit requests to the Ministry of Health, detailing the NGO's activities and their associated costs. Once approved, invoices and proof of payment were submitted to the Ministry, which then transferred funds into the organization's bank account, managed by Michaelidou. However, these invoices are now under scrutiny, with investigators working to piece together how the fraud occurred.
The investigation is ongoing, with further statements from Michaelidou' family, friends, and associates expected. Prosecutors are also set to request access to her bank accounts to trace the flow of funds.
Founded in 2000, K.Y.F.A.A. is the first recognized non-profit organization in Cyprus dedicated to supporting people living with HIV/AIDS. Its mission includes providing assistance to individuals affected by the virus, as well as working to prevent its spread and combat stigma. However, this alleged fraud scandal threatens the reputation of the organization, raising concerns about its future operations.
As authorities continue their investigation, Michaelidou remains in detention, and the public awaits further developments in what is shaping up to be one of the largest financial fraud cases in the country.
*The woman in custody is not related to the Superintendent of State Aid, Ms. Stella Michaelidou.
