The focus keyword, pension fund, is at the heart of the investigation into suspended Paphos mayor Phedon Phedonos, who is accused of misappropriating €1.5 million from municipal workers’ pension funds and overseeing illegal appointments.
- As the investigation continues, the community watches closely, aware of the significant implications that these allegations may have on local governance and public trust.
The investigation, led by police, has been underway since April 2022, targeting both Phedonos and a senior municipal official. By January 2023, the lead investigator submitted a report to the Attorney General, outlining key allegations that could lead to prosecution.
Pension fund: Allegations of Misappropriation
Among the most serious claims is the alleged raiding of €1.5 million from the pension fund. This money was reportedly used to purchase land intended for student accommodation. Trade union organisations flagged this issue to the Labour Ministry in January 2022, asserting that the action breached legal regulations.
Questionable Hiring Practices
The investigation has also uncovered that five individuals were hired by the municipality without following proper procedures. These appointments included positions related to “smart city” initiatives, which came with substantial salaries. Notably, the municipality is accused of offering these jobs before obtaining the necessary approvals from the Interior and Finance Ministries.
Illegal Subletting Activities
Another critical allegation involves the illegal subletting of Turkish Cypriot property for a café in Mouttallos. Despite clear legal advice stating that such actions were not permissible, the municipality allegedly proceeded with the subletting, which lacked the necessary planning permits and licences.
Misuse of Official Resources
Documents reveal that Phedonos used two municipal employees as personal drivers, who were then paid overtime from public funds. An official report highlighted that no proper vehicle journey log was maintained for the mayor’s official vehicle, which is a violation of regulations. These drivers also accompanied Phedonos on official trips beyond the Paphos district.
Timeline of the Investigation
The complaint against Phedonos was initially filed with Paphos CID in April 2022. Following this, the file was directed to the Law Office for further guidance. By spring 2023, the CID requested an investigation from the Audit Service, which corroborated several allegations, including the misuse of vehicles and improper hiring practices. The findings were forwarded to CID in autumn 2023, paving the way for further scrutiny.
Whistleblower’s Experience
The investigation has also highlighted the fate of the whistleblower who reported the alleged wrongdoing. Shortly after filing the complaint, the individual was dismissed from their position on 17 May 2022. The municipality’s legal adviser claimed the whistleblower acted out of personal vendetta, labelling the complaint as unfounded.
As the investigation continues, the community watches closely, aware of the significant implications that these allegations may have on local governance and public trust.
