Mismanagement allegations at Nicosia sewerage board

The Nicosia sewerage board is currently under scrutiny by independent authorities for alleged mismanagement, misuse of public funds, abuse of power, corruption, employee exploitation and workplace bullying.

Investigations are focusing on five old contracts of the sewerage board, totalling tens of millions of euros, which are still unresolved due to financial discrepancies, irregularities and suspicions of overpayments and fraud, according to daily Politis.

Moreover, several newly emerged allegations regarding the five contracts, among other issues, were reportedly handed over to the police and the Audit Office last week by the sewerage board’s director general Yiannis Koukoularides.

The Audit Office, the newspaper said, has expressed serious reservations about the quality of work executed under the five contracts in question, as well as over the board’s inadequate supervision regarding the works carried out.

On top of that, the report claims that significant sums were paid through friendly settlements as compensation to contractors, which the Audit Office deemed unjustified.

The Audit Office confirmed to the Cyprus Mail that it was looking into the allegations and that it hired an expert to carefully analyse all documents provided for the matter.

Findings, however, will only be made public after the local elections in June, a spokesperson said.

Allegations of bribery are also pending investigation by the Anti-Corruption Authority, including claims involving a former sewerage board employee implicating a senior official in pre-contract arrangements with a specific contractor.

Additionally, concerns have been raised regarding the handling of funds that were not declared to the tax department.

At the same time, disciplinary proceedings have been initiated against a sewerage board management official for various offences, including forcing employees to carry out personal tasks during working hours and unauthorised use of company vehicles. Furthermore, a recent complaint of workplace bullying against the same official has been also lodged with the authorities.

After the publication of the report, independent candidate for district governor at the upcoming local elections Andreas Assiotis accused fellow candidate and current chairman of the sewerage board Konstantinos Yiorkadjis of being responsible for the issues currently affecting the body.

“He bears responsibility for the actions of the sewerage board because he was its president for 12 years,” Assiotis said, referring to Yiorkadjis, who is also running for district governor.

“The complaints pending with the police and the audit office testify to the apparent weaknesses and deficiencies of his administration,” he said.

“There are very specific allegations of extensive malpractice or mismanagement, resulting in even the sustainability of the sewerage board being questioned. If elected, I will address all these issues promptly, thoroughly, with the aim of protecting the interests of consumers and not anyone else.”

Yiorkadjis has not yet responded to the allegations, nor to Assiotis.