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A €700,000 donation to the First Lady’s Independent Social Support Agency (ISSB) has drawn fresh scrutiny, with the Auditor General warning that private contributions could give the appearance of influence when donors are also doing business with the State.
The Agency, which provides financial aid to students and families facing hardship, is largely funded by private donations rather than the state budget. But the new report highlights cases where companies negotiating lucrative state contracts, or under regulatory review, donated significant sums, raising questions about transparency and oversight.
In one striking example, a company negotiating a multi-million-euro state contract contributed €395,750 in 2023 and €300,000 in 2024. Another company involved in a €10 million EU co-financed project gave €200,000 annually. Financial services firms facing regulatory scrutiny contributed €10,000 to €50,000 each. Donations from individuals linked to the Cyprus Investment Program, a foreign high-net-worth donor, and health-sector companies awaiting regulatory approval were also flagged.
The Auditor General stressed that private support for charitable organizations is normal. But he warned that the ISSB’s current operations don’t provide sufficient safeguards to ensure independence when donations intersect with state ties.
“The current system of operation and management does not sufficiently ensure the independence and integrity required,” the report concluded, signaling the need for tighter oversight.
The findings are expected to spark debate over how charitable donations are monitored in Cyprus, particularly when big money meets state influence, and how public trust can be maintained in high-profile, First Lady-led organizations.
