Odysseas Michaelides, AKEL, and DIKO raised the issue of parliamentary oversight of the Audit Office during the Audit Committee meeting. The Auditor General was present to provide a briefing and engage in an open discussion. Right from the start, however, his predecessor drew his attention to the matter.

The occasion was a request by Odysseas Michaelides to submit to Parliament an internal report of the Audit Office, with the Auditor General stating that it was an internal document that could not be handed over. This report approves audits and sets their start and completion dates.

“It is an internal document that cannot be provided to Parliament.” ^{Andreas Papakonstantinou, Auditor General}

“The Audit Committee exercises parliamentary oversight over the Audit Office, and we can request information and documents from the Office.” ^{Odysseas Michailidis}

“I disagree with this position. The Audit Committee does not exercise oversight over the Audit Office.” ^{Andreas Papakonstantinou}

“This is not a matter of opinion. We are not asking for state secrets. Within the framework of parliamentary oversight, the Committee may request any information it wishes and have it submitted to it. That is what the law says.” ^{Odysseas Michaelides}

“If you insist that you are not subject to parliamentary oversight, you are acting unconstitutionally, Mr. Auditor.” ^{Zacharias Koulias}

The Law

The Auditor General replied that, should there be a persistent demand for access to internal documents, a legal opinion would be sought. However, the law does not provide for any exception for the audit service, but only for private individuals under certain conditions or for public officials when matters of security, defense, and foreign policy are at stake.

DISY stated that it is not the committee’s intention to enter into a confrontation with the Audit Office.

Audit on VAT

The creation of the new VAT Unit within the Tax Department is a step in the right direction; however, it is not sufficient on its own to address the chronic weaknesses of the tax audit mechanism. This is pointed out by the Audit Service following an audit of a random sample of tax files, which revealed shortcomings in audit procedures.

“Audits must be targeted, carried out without delay, and conducted on-site. We understand that the department does not have unlimited resources.” ^{Giota Michael, Auditor, Audit Service Press Officer}

Current practices do not allow for effective risk assessment.

See the report by Evangelos Agapios