Paphos Mayor Phedonos Denies Embezzlement Claims Amid Smear Campaign Accusations

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Phedonas Phedonos, the suspended mayor of Paphos, has firmly rejected allegations of embezzlement and administrative malpractice, labelling them as part of an “organised smear campaign” against him. Currently on mandatory leave, Phedonos asserts that his municipality is exemplary in its financial transparency, being the only one in Cyprus with audited accounts up to 2024, while others have records dating back as far as 2016.

In a social media post, Phedonos expressed his frustration over what he perceives as a coordinated effort to undermine his reputation. He stated, “when the first plot fails, the next one is deployed; when one category cannot be substantiated, a new one is ‘discovered.’ This is a coordinated campaign.” His remarks were underscored by a municipal announcement on October 22, 2024, confirming that all audited financial statements have been completed and submitted to the auditor-general.

Despite the ongoing investigations into multiple allegations, including unlawful recruitment and misappropriation of funds, Phedonos remains defiant, declaring that his administration prioritises good governance and transparency. He asserted, “Good administration and transparency have never been a communication trick. They are at the core of the municipality’s administration.”

The investigations came to light following a complaint filed in April 2022 by a former municipal employee who claimed to have been dismissed after raising concerns. This inquiry, initially handled by Paphos CID and subsequently by CID headquarters in Nicosia, focuses on key allegations including the diversion of €1.5 million from the municipal employees’ pension fund and improper management of Turkish Cypriot property.

Concerns have also been raised regarding recruitment practices within the municipality. Findings from police and audit-office examinations suggest that appointments for five positions, including two related to Smart City projects, bypassed necessary approvals from the interior and finance ministries. This has resulted in scrutiny over the hiring processes and the legitimacy of the candidates selected.

Phedonos defended the recruitment decisions, maintaining that they were legal and properly authorised. He described the criticism as politically motivated, arguing that it aims to tarnish his image ahead of the 2028 elections.

Another serious allegation involves the misappropriation of pension funds linked to the purchase of land for student accommodation. This transaction is under investigation to ascertain whether it serves the best interests of the fund members, with trade unions claiming it breaches legal statutes.

Additionally, the subletting of Turkish Cypriot residential property without proper authority has raised questions about compliance with property management and planning regulations. The allegations suggest a disregard for legal protocols in managing municipal assets.

Phedonos is also facing separate criminal investigations related to allegations of rape and domestic violence, which led to his suspension in accordance with municipal law. This decision has been upheld by the administrative court, which deemed that the public interest outweighed the potential harm to Phedonos’s reputation.

The acting mayor, Angelos Onisiforou, has directed all municipal department heads to fully cooperate with ongoing police and audit investigations, signalling a commitment to uphold transparency within the municipality.

Phedonos continues to contest the allegations, labelling them as a “coordinated attempt to undermine my public standing,” and attributes the scrutiny to political rivalries, particularly with figures such as businessman Theodoros Aristodemou. He has dismissed the claims surrounding planning permits and property disputes as “pure nonsense” and trivial accusations.

As the investigations unfold, no decisions have been made regarding potential criminal charges against Phedonos. The outcome of the inquiry may have significant implications for his political future and the governance of Paphos.

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