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Tag: audit report

  • Forestry Department Plans Law Amendments for State Land Leasing

    Forestry Department Plans Law Amendments for State Land Leasing

    state land — The forestry department is set to amend laws regarding the leasing of state forest land, responding to findings from a critical audit report.

    • state land — The forestry department is set to amend laws regarding the leasing of state forest land, responding to findings from a critical audit report.
    • On Thursday, the department acknowledged the necessity for modernising its institutional framework, stating it is in the process of implementing changes to tackle issues highlighted in the audit.
    • “The primary objective is not the leasing of land but the protection and preservation of forests,” it reiterated, noting that lease agreements are only examined upon request.
    • Furthermore, it stated that hotel lease agreements in Ayia Napa originate from contracts formed decades ago and do not represent current policy.

    On Thursday, the department acknowledged the necessity for modernising its institutional framework, stating it is in the process of implementing changes to tackle issues highlighted in the audit.

    According to the department, the aim is to resolve deficiencies and enhance the management of state properties. “The protection of forests and biodiversity remains our primary priority,” the department affirmed, emphasising its commitment to collaborate with the audit office and other relevant authorities to improve procedures and rectify identified issues.

    The audit report, which covered the period from 2018 to 2025, revealed that many concerns trace back decades, some even to the 1970s. The department described the existing landscape as a “complex institutional and administrative environment” that has contributed to ongoing challenges.

    Among the audit’s key findings was a focus on the leasing of state forest land, an area that has faced increased public scrutiny due to concerns over lease expansions, environmental oversights, and over €1.3 million in overdue revenue.

    The department identified major weaknesses, particularly delays in the revision of leases. It expects to address these issues in collaboration with the cadastre to expedite relevant procedures. The department clarified that leasing is permissible only for specific purposes and requires cabinet approval, consultations with all relevant departments, and market rent determinations by the land registry.

    “The primary objective is not the leasing of land but the protection and preservation of forests,” it reiterated, noting that lease agreements are only examined upon request.

    In light of recent discussions concerning specific cases, such as the Phini adventure park and the Machairas scout camp, the department confirmed that lease agreements contain “explicit environmental conditions” and cancellation clauses where necessary permits are not secured.

    Furthermore, it stated that hotel lease agreements in Ayia Napa originate from contracts formed decades ago and do not represent current policy.

    The forthcoming legislative amendments will address issues such as lease duration, rent levels, and compliance monitoring. “Where violations of the legislation are identified, procedures are promoted for judicial action, in full cooperation with the legal service,” the department added, indicating that measures to recover overdue revenues are being intensified.

  • Audit Report Reveals Defence Ministry Waste and Staffing Shortcomings

    The defence ministry is facing significant challenges with wasteful spending and staffing levels, according to a recent audit report. Released by the Audit Office, the report examines the years 2021 through 2024, highlighting ongoing organisational issues and structural inertia that have led to fiscal costs.

    Long-Standing Issues with Departmental Mergers

    One of the primary concerns identified in the report is related to the merger of various departments within the defence ministry and the army general staff. This merger was part of a strategic plan initiated in 2015, aimed at streamlining operations and reducing operational costs. By April 2019, the integration was physically realised with both entities being housed in the same premises.

    However, contrary to expectations, the report reveals that the number of military personnel assigned to defence ministry departments has actually increased rather than decreased, undermining the intended efficiency of the merger. This rise in personnel contradicts the rationale behind the consolidation, which was designed to optimise resources and enhance operational effectiveness.

    Widespread Leasing Practices

    Another critical issue raised in the report is the delay in relocating to government-owned premises, resulting in a reliance on leased properties. The continued practice of leasing not only incurs additional costs but also illustrates a failure to fully implement the merger’s objectives. By prolonging the leasing arrangements, the defence ministry is potentially wasting valuable financial resources that could be redirected towards other essential services.

    Inefficiencies in Data Management

    The report also highlights the lack of modernisation in administrative processes within the defence ministry. There has been a notable failure to implement computerised systems that could efficiently track vital functions, such as requisitioning and orders of expropriation. Instead, data is being entered manually into spreadsheets, such as Excel, which significantly increases the risk of human error.

    Attempts to establish a computerised system that could connect with a central governmental database have not materialised, leaving the defence ministry reliant on outdated methods. This inefficiency not only hampers productivity but also poses risks to the accuracy of critical data management.

    Irregular Financial Commitments

    In a related section, the Audit Office recounts an incident from early 2023 involving then-president Nicos Anastasiades. During a visit to Athens in February 2023, he pledged a €2.5 million grant to Greece’s air force as a gesture of solidarity following a tragic crash involving a Greek Air Force plane. This public commitment resulted in the disbursement of funds that were not accounted for in the defence ministry’s budget, raising concerns about the irregularity of such financial commitments.

    Misuse of Military Vehicles

    The audit also uncovered continued misuse of military vehicles for transporting both military and civilian personnel from their homes to work. This practice has resulted in excessive fuel consumption, straining the fuel quotas allocated to various military units. Such actions not only violate existing regulations but also highlight a disregard for resource management within the defence ministry.

    The auditor-general has stated that if the army general staff wishes to continue this practice, it must formally request a change in the law, underscoring the need for adherence to legal frameworks and proper governance.

    Missed Opportunities for EU Funding

    Furthermore, the report notes delays in the installation of photovoltaic systems at National Guard camps, which is critical for harnessing renewable energy. These delays pose a risk of losing out on potential EU funding, which could have provided financial support for sustainable energy initiatives. The inability to capitalise on such opportunities reflects a broader pattern of inefficiency and missed potential within the defence ministry.

    The Defence Ministry’s Core Mission

    Despite these challenges, the Audit Office’s report emphasises that the primary mission of the defence ministry remains unchanged: to protect the territorial integrity and independence of the Republic of Cyprus from any hostile threats. However, the ongoing organisational problems and fiscal waste identified in the audit undermine the ministry’s ability to fulfil this essential mandate effectively.

    In light of these findings, there is an urgent need for the defence ministry to address these issues comprehensively. Implementing effective management practices, enhancing operational efficiency, and adhering to legal standards are crucial steps necessary for restoring public confidence and ensuring the ministry can meet its obligations.