A host of findings by the Audit Office regarding the Limassol Municipality, which identifies a long-standing deviation from the legislative and regulatory framework. Among the Audit Office’s findings are the misuse of official vehicles, an excessive increase in overtime, and irregular practices.

“The Audit Office’s review demonstrated that the problems in the Limassol Municipality’s human resources management are not isolated failures, but reflect a long-standing deviation from the applicable legislative and regulatory framework,” the Auditor General states, adding that the findings highlight practices that are inconsistent with the principles of legality and sound administration, exposing the Municipality to serious administrative, financial, and legal risks.

Specifically, there was a sharp 176% increase in overtime expenses, which rose from €0.5 million in 2017 to €1.4 million in 2024. Payments were made without adequate oversight, without prior approval, and in violation of regulations governing senior officials.

The Municipality placed hourly-wage staff on the salary scales for civil servants, a practice that significantly increases employment costs. In addition, personal pay scales and promotions were granted that do not comply with public sector regulations.

Illegal reclassifications or renamings of positions were identified, such as the reclassification of traffic officers as office assistants, despite contrary legal opinions. Furthermore, the Municipality did not have published Job Descriptions for all positions, a fact that undermines transparency in hiring.

The procurement of services was used to cover permanent needs, resulting in several individuals being converted to permanent employees after 30 months of employment, by circumventing legal procedures.

It has also been found that allowances, such as travel expenses, irregular work schedule allowances, and Easter bonuses, without sufficient legal basis, and without documentation of how they are calculated or why they are necessary.

“Particularly telling is the 176% increase in overtime costs during the 2017–2024 period, despite the Municipality’s repeated assurances, dating back to 2011, that measures were being taken to limit them. The audit results demonstrate that these assurances were not accompanied by substantive action. At the same time, it was found that allowances, personalized pay scales, and other financial benefits were paid without sufficient legal basis or documentation, as well as decisions that violate explicit regulatory provisions.”

The provisions in the Internal Auditor’s Terms of Reference undermine his independence, as investigations are assigned to him directly by the Mayor or the Municipal Secretary.

Decisions by the City Council were identified that were made without a lawful quorum or had unlawful retroactive effect.

The time-tracking system is outdated and frequently malfunctions, while the improper use of official vehicles for employees’ commutes to their homes continues.

At the same time, according to the findings, the payment of monetary compensation in lieu of leave was unlawfully approved for a retired civil servant. Specifically, as stated in the report, the Board of Directors decided to pay compensation in the amount of €9,823 to a Senior Municipal Official in connection with pre-retirement leave to which he was entitled, in violation of the relevant regulatory framework, which explicitly states that under no circumstances is an official entitled to claim payment in lieu of leave.

“These erratic and disorderly actions create uncertainty, foster a culture of mismanagement, and expose the Municipality to legal risks. All of this undoubtedly has a direct impact on the Municipality’s financial management,” concludes the Auditor General.

Special Report by the Audit Office: “Compliance Audit on Personnel Matters at the Municipality of Limassol [EE-AO 24/2026]”

View the report here: https://t.co/3xWM3psNRO pic.twitter.com/eumeptiohm

— AUDIT OFFICE OF CYPRUS (@Audit_Office_Cy) July 22, 2026