Cases of beneficiaries who received the Minimum Guaranteed Income (MGI) for several years using false information, applicants with bank deposits totaling hundreds of thousands of euros and high-value real estate, as well as serious delays in audits, are documented in the Audit Office’s new report.
The cases examined reveal significant weaknesses in the way the Welfare Benefits Administration Service (YDEP) assessed applications, verified beneficiaries’ information, and monitored the continued payment of benefits. In some cases, false declarations and concealment of income were found, while in others, incomplete supporting documents or failures to conduct follow-up checks were identified.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
Read more: Audit of the EEE: Hundreds of Thousands in Deposits and Unchecked Benefits—What the Special Report Reveals
In total, the Audit Office examined a targeted sample of 31 applications, 11 of which involved long-term pre-approvals, 11 exemptions from the prescribed bank deposit limits, and nine exemptions for real estate. The findings are included in Special Report EU-EY 33/2026, dated November 11, 2026.
Received €102,528 based on false information
One of the most notable cases involves an applicant who submitted an application in February 2016, stating that he was separated from his wife and was the father of three children.
His application was placed on preliminary approval status in January 2017, with the requirement that he submit additional documentation within three months. However, after April of that year, no further substantive follow-up was recorded by the competent agency.
The applicant continued to receive the EEE for more than seven years, receiving a total of €102,528. It was not until March 2024 that a re-examination was conducted, during which false information regarding his income and family status was discovered.
The application was retroactively terminated, and proceedings were initiated to recover the entire amount.
She received €80,607, but was registered as unemployed
In another case, an applicant—a third-country national with subsidiary protection status— received the EEE from May 2017 through March 2024, receiving a total of €80,607.
Her application had been placed on hold for preliminary approval due to her failure to submit supporting documents regarding her family status; however, the review of her case was not completed in a timely manner.
The audit revealed that the applicant was registered with the Public Employment Service for only 33 of the 83 months during which she received the benefit.
The application was terminated in March 2024 due to failure to provide documentation, false statements regarding her family status, and her classification as voluntarily unemployed.
Furthermore, the Audit found that, as of March 2024, the applicant was employed with a monthly salary of €400, which increased to €1,350 the very next month. Despite these findings, no action was taken to recover any funds.
Complaints Regarding Undeclared Work and Cohabitation
Another notable case involves an applicant over 65 years of age who had stated that she was separated from her husband.
The application was placed on preliminary approval status in November 2016, with the YDEP requesting the submission of a divorce decree or other relevant supporting documents. Although the documents were not submitted by the specified deadline, payment of the benefit continued.
A complaint was found in the electronic file stating that the applicant was still living with her estranged husband and was working as a cleaner without paying SocialInsurance contributions.
The Audit Office notes that there was no timely and substantive investigation of these specific complaints; however, it was not established that the allegations regarding cohabitation and undeclared work were substantiated.
The applicant received a total of €43,771 through September 2023, at which point her application was terminated due to false information regarding her marital status and the concealment of family income, which consisted of a monthly remittance to a child’s bank account.
Despite these findings, there is no indication that the recovery of unduly paid amounts was considered.
Deposits of €679,024 and benefits of €84,616
Serious questions about the effectiveness of audit procedures also arise from cases involving beneficiaries with deposits that significantly exceeded the statutory limits.
A typical example is the case of a person with a disability in whose name bank deposits totaling €679,024 were recorded and to whom benefits totaling €84,616 had been paid.
His application had initially been terminated in 2021 due to the discovery of undeclared deposits. Following an appeal, the funds were justified as compensation for injury or damage resulting from an accident—a circumstance that may be excluded from the calculation of asset criteria.
The file also contained a complaint regarding undeclared work, which was investigated; the explanations regarding occasional employment appeared to have been accepted.
In March 2024, the application was rejected again, this time due to false information regarding the applicant’s income and family status.
Six-figure bank deposits without sufficient supporting documentation
Two additional cases involve applicants with bank deposits of €439,611 and €302,889, who had received benefits totaling €90,839 and €111,820, respectively.
The applications had been approved under legislative exemptions, as the beneficiaries were individuals with disabilities.
However, the Audit Office found that there was insufficient evidence to substantiate that the deposits originated from accident compensation or met other relevant conditions for exemption.
The Deputy Ministry of Social Welfare argued that the necessary supporting documents were kept in other administrative or confidential files.
Nevertheless, even during the re-audit in July 2026, the required documentation for these two specific cases had not been provided.
The Audit Office clarifies that the existence of large bank deposits does not automatically imply the illegal receipt of EU funds, provided that legislative exceptions are in place. The problem lies in the insufficient documentation of their application.
Real estate valued at €210,400 and indications of non-continuous residence in Cyprus
In cases involving real estate, one beneficiary stands out whose properties were initially appraised at €150,767, but following the Land Registry’s revaluation in 2018, their value increased to €210,400.
Although the competent authority was informed of the increase in property value and recorded a note to that effect in May 2022, no substantive re-examination of the application was found to have taken place.
At the same time, indications were found of the applicant’s possible non-continuous residence in the Republic, as no transactions had taken place in his declared bank account for a period of 18 months, and since 2021, he had been receiving a pension from an institution in Greece.
The Audit Office notes that these indications were not investigated in a timely manner. The applicant received a total of €24,433 before his application was terminated in January 2025 due to the amount of his income.
Real estate valued at €257,300 and conflicting medical opinions
In another case, a claimant with real estate valued at €257,300 received a total of €62,104 after her application was approved following an appeal, due to her bankruptcy status.
The Audit Office identified conflicting medical opinions regarding her ability to work. One deemed her unfit for work, while the other deemed her fit for work with restrictions.
However, the YDEP appears to have relied on the first opinion without referring the applicant for further evaluation.
Additional questions arose regarding her financial situation, as her declared income did not appear sufficient to cover basic living expenses, a fact which, according to the Audit Office, required an investigation into possible additional sources of income.
Although the Deputy Ministry had stated that the case would be reviewed, the January 2026 audit found no indication that the application had been updated, and in June of the same year, the claim regarding the systematic submission of more recent medical certificates was not confirmed either.
€159,660 was paid despite the outstanding issues
One of the largest total payments recorded in the report concerns an applicant who was granted €159,660 from June 2016 through December 2025.
His application had initially been rejected for exceeding the asset criteria, but was approved in 2016 following an appeal.
During the 2022 review, the YDEP requested additional information regarding the applicant’s real estate holdings, ownership share, and income, setting a 20-day deadline.
However, the applicant submitted only bank statements at that time, without providing the remaining supporting documents.
The information was requested again in July 2024 and submitted the following month, revealing, according to the Audit Office, serious delays in the re-audit procedures and in the timely issuance of administrative decisions.
And real estate worth €811,400
The Audit Office’s sample also includes the case of a bankrupt individual with real estate valued at €811,400, who had received benefits totaling €34,042.
This specific case, like other bankruptcy cases, was examined to determine whether the real estate could be utilized or generated income.
However, the audits conducted by the Insolvency Department found no evidence that the properties were being utilized. The Audit Office does not allege unlawful receipt of benefits based on this specific property, but highlights the need for systematic cooperation among the relevant government agencies.
Benefits Paid for Years Without a Final Decision
These specific cases are part of a broader problem in the administration of social welfare benefits.
According to data from October 2022, of the 252 applications under preliminary approval, 242 involved prolonged payments without a final decision. In 150 cases, the pre-approval period exceeded two years.
The Deputy Ministry of Social Welfare reports that it conducted reviews, resulting in the number of pending pre-approvals being reduced to 149 in January 2026.
At the same time, an Audit Team was established to investigate complaints. However, according to the report, three of its four members had resigned without being replaced, limiting the mechanism’s full functionality.
The Audit Office’s findings do not prove that all the amounts paid in the cases under review were undue. They do, however, that in several cases state support continued without the necessary checks having been completed or without sufficient documentation that the conditions for payment were still met.
This issue is particularly significant, as the lack of timely audits and effective recovery procedures may deprive the social welfare system—and citizens who are in genuine need of financial support—of valuable resources.
