The Digital Citizen app has sparked scrutiny after the Cypriot government awarded a no-bid contract to Greece for its development. The deputy ministry of research, innovation and digital policy responded to a report from the auditor-general’s office, which raised questions about the transparency of this €1.5 million project.
The Digital Citizen app is designed for mobile devices, enabling users to create and retain official documents digitally, including personal identity cards, driver’s licences, and vehicle roadworthiness certificates. To utilise the app, users must possess the corresponding physical documents.
In 2024, the Cypriot government directly awarded the development contract to Greece’s ministry of digital governance, which subsequently subcontracted it to a private company in Greece. This company had previously been selected to develop a digital wallet for the Greek state.
While awarding public contracts through inter-state agreements is permitted under EU Directive 2014/24, the auditor-general expressed concerns regarding the potential for circumventing open tender procedures. The report highlighted the absence of a cost estimate for the project and noted that work on the Digital Citizen app began before the signing of the agreement in October 2024.
The auditor-general’s report stated, “Despite the fact that the memorandum of understanding with Greece was signed in June 2024, data gleaned from the deputy ministry’s correspondence indicate that work on the Digital Citizen had already begun from March 2024.” This led to concerns about the transparency of the process and the impression that the implementation trajectory had been predetermined.
Additional issues raised included that any compensation claims would need to be pursued through courts in Greece rather than Cyprus, and there was a lack of clarity on whether the monetary amounts involved included VAT.
In response to the auditor-general’s findings, the deputy ministry dismissed any allegations of impropriety, noting that the report did not identify any illegality in the process. They also rejected claims that legal vetting for the contract had been delayed, stating that the attorney-general’s office had been engaged as early as April 2024.
The ministry explained that the inter-state nature of the agreement allowed Cyprus to leverage existing infrastructures instead of developing a new system from scratch, which they argued saved time and resources.
Furthermore, the ministry emphasised that the Digital Citizen app is a vital step towards the EU Digital Identity Wallet (Eudi), a personal digital app set to enable citizens, residents, and businesses across the EU to manage and share digital credentials. Set to come into effect in May 2024, the Eudi aims to standardise secure, private, cross-border digital identification by 2026-2027.
