eu funding — Paphos council has been accused of mishandling EU funding, resulting in a potential loss of €2.5 million, according to opposition councillors. The allegations surfaced during a plenary session on Monday, where the DIKO municipal group claimed the local authority had sat on the issue for 18 months without informing the full council.
Eu funding: Mismanagement of Key Projects
The council’s mismanagement relates to three EU-funded construction projects: the Historical Documentation Centre, nearing completion at Kennedy Square, and regeneration works at the Anavargos neighbourhood and the city’s southern commercial district. The DIKO group has now tabled a formal complaint regarding these projects.
Funding Agreements and Financial Implications
On 10 October 2024, Paphos municipality signed a loan agreement totalling €11,797,528 with the Republic of Cyprus and the European Investment Bank (EIB) to finance the Historical Documentation Centre. The Anavargos and southern commercial centre works, along with Theoskepasti Square regeneration, were separately co-funded through the Thalia 2021-2027 European programme.
Accessibility Issues and Funding Withdrawal
During the construction phase, the Directorate of European Funds identified accessibility problems with both the Anavargos and Theoskepasti projects. Consequently, these projects were removed from the Thalia programme. According to the DIKO complaint, discussions with the Ministry of Interior regarding these issues have been unresolved for around 18 months, yet the full council was only made aware of the situation during Monday’s session.
Proposed Solutions and Legal Concerns
In light of the funding withdrawal, the Directorate proposed that the Historical Documentation Centre be substituted for the Anavargos and southern commercial centre works. However, incorporating the centre into the Thalia programme would violate regulations regarding double funding, as it is already financed by the EIB loan.
The DIKO group contended that the only viable solution would be to redirect the EIB loan to finance the Anavargos and southern commercial centre projects instead, which would cost approximately €9.3 million. The remaining €2.5 million would potentially fund other municipal initiatives, including the Natural History Museum and market canopies.
Council’s Decision Amidst Controversy
Despite the controversy, the Municipal Council voted to approve the arrangement, citing force majeure as the reason for their decision. However, DIKO condemned the lack of transparency and what they described as mismanagement, which has placed an additional financial burden on the city. They pointed out that the vote seemed to have been influenced by penalty clauses and the imminent provisional handover of the Historical Documentation Centre.
Financial Fallout and Call for Accountability
DIKO has estimated the cost of the delays to be around €2.5 million, money they argue could have been saved with proper planning and communication. The ongoing situation raises questions about the management practices within the Paphos municipality and the need for greater transparency in handling EU funds.
The unfolding events have sparked a debate within the community regarding the accountability of local authorities and the effective management of public resources. As the issue continues to develop, residents of Paphos are left to ponder the implications of these financial decisions on their city’s future.
