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Controlling: RIK actions will further drive up wage costs

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According to EY, the implementation of the Foundation's agreements in 2020 with the Trade Unions includes job upgrades and staff salary increases

Ελεγκτικor: Οι ενρ γειες ΡΙΚ θα εκτοξεύσουν περαι τερω το μισθολογικo κoστος

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The actions of the RIK, which relies on state sponsorship, are expected to further increase the salary costs and, by extension, the pockets of the tax-paying citizen, according to a Special Report of the Audit Service on the subject of “Control of the Implementation of the Agreement between the RIK and Trade Unions on the new Organization Chart of RIK and other Personnel issues”.

As the Report states, EY decided to carry out this audit as the implementation of the agreements made in 2020 between the Cyprus Radio Foundation (CRF) and the unions for a new organizational chart includes many job upgrades and staff salary increases, which are expected to catapult both the Foundation's payroll costs by 33% in five years (years 2021-2026) and government funding for it.

The purpose of the audit was to confirm the correct implementation of the agreements in question and the relevant provisions of the approved Budgets. Additional general personnel matters were also considered, it added.

In the General Conclusions of the Report it is noted that “it is not enough that in a semi-state organization with such high payroll costs, instead of taking measures to limit costs, agreements were made based on the demands of the unions for large-scale wage increases, the Board illegally and possibly acting as 'exceeding and/or abuse of power, upgraded employees to positions at the scientific level without having a university degree and/or without their degree being recognized by KYSATS, and/or without this being provided for in the Budget, and/or in positions that had been abolished in the Budget”.

Also, it is added, the Foundation has recruited fixed-term employees at a time when it is overstaffed compared to vacant positions, which in some cases may be converted to open-ended positions.

“The actions of the Foundation, which relies on state sponsorship, are expected to further increase the salary costs and, by extension, the pockets of the tax-paying citizen”.

This Report, along with its publication, will be sent to the Independent Anti-Corruption Authority to investigate possible abuse of power, says EY.

In its General Recommendations, EY notes that the Foundation should completely change its governance culture, with the obligation to ensure the interests of the Foundation and citizens in general and to always act within the framework of legality by applying the correct practices and procedures required by the rules of good administration and sound financial management.

“As a first step, we repeat the establishment of the Service, to modernize the Regulations of 1966, so that the Service Plans are approved by the Council of Ministers, a practice that also applies to other legal entities under public law and which the Ministry of the Interior also agrees with.

Source: www.kathimerini.com.cy

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