The Mayor of Palaichori Orinis deliberately omits for 22 years to prepare and submit for audit the financial statements of the Community Council, reports the Audit Service
Many violations of the Law on Communities, are presented in a special report of the Audit Service regarding the findings from the audit of financial statements as well as from the conduct of compliance audits by private auditors in Community Councils (CS).
The most important findings, among others, include non-preparation of budgets, payments without the relevant budget appropriations, significant excesses in funds, making payments for the execution of tasks by Presidents and/or Members and/or employees of the Board of Directors in violation of the Law on Communities, as well as making payments to relatives of Members of the Board of Directors and/or to companies owned by relatives of Members, without following the legal procedures.
At the same time, the Audit Service presents the findings resulting from audits carried out, usually following complaints, which it characterizes as “very serious”.
For the KS Agios Tychonas, the Audit Service refers to five leisure centers which were constructed, without a town planning permit/building permit, in the context of the Urban Planning Project “Creation of a Park in Amathusta/Agios Tychonas Beach Walk” erected on state land and within the Protection Zone of Paralia in areas that were illegally rented by the CS to private individuals, since the CS did not have the right to use the state land.
He notes that from unaudited data from the years 2008 – 2022 it was found that the CS collected rents from the areas with the illegally erected recreation centers, totaling approximately €4.6m.
Regarding the Community Council of Palehori Orinis, EY notes that the Mayor of Palehori Orinis, despite the repeated efforts made since 2002, deliberately omits for 22 years to prepare and submit to our Service for control the financial statements of the Council, since the date of establishment of, on 2.11.2001, until today, in violation of a lot of legislation.
As stated, due to the seriousness of the matter, the Service by letter dated 9.3.2020, was assigned to the Attorney General for examination of the possible commission of criminal and/or other offenses by the President of the SC and/or the SC of Palaichori Orinis.
However, NY responded that the issue of non-preparation of financial statements by the SCs should not be dealt with criminally, but with other mechanisms, more efficient and quick.
The Service also addressed letters to the Ministers of Finance and of the Interior, calling on them to suspend or cut off the state sponsorship to the KS as a last-ditch measure of pressure so that it is forced to comply with its obligations, but “to date and despite our repeated reminders to the two Ministers, no substantial action has been taken and no progress was made.”
Furthermore, EY notes that the Penakomo Town Council, without announcing any tender for the demonstration of interest in the use of the Camping Area, proceeded to conclude a “Licence Agreement Document” with the managers of the area until then, for the period from 1.1.2013 – 31.12.2027, i.e. for a period beyond 30.6.2026, the date until which they had a legal right to use by the Custodian T/C properties.
According to the EY, the leasing from the KS to the administrators contravenes article 6B of Law 139/1991, which provides that T/K immovable property may be leased to local self-government authorities (and not to private individuals), in exceptional cases, and only on the understanding that this serves the public interest.
EY expresses the opinion that the Guardian is left with no other leeway than the recovery of the properties and leasing/delegating their management in accordance with the provisions of the Law, excluding the possibility of any subletting them given that the subletting of T/C properties is illegal.
“Our Service considers this case as a monument to mismanagement and lawlessness and the matter should concern the Minister of the Interior personally, so that to restore legitimacy, good administration and good financial management”, reports EY, noting that depending on the developments on the matter, it is oriented to refer the case for examination by the Independent Anti-Corruption Authority.
