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The biggest illegality in the history of KD – With private businesses 5,000 employees of the public and wider public sector!

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It is the first time in the history of the Republic that such a large-scale illegality in the public and wider public sector is revealed, which develops into a megaton scandal.

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It is the For the first time in the history of the Republic, such a large-scale illegality in the public and wider public sector is revealed, which develops into a megaton scandal.

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According to a confidential report of the Audit Service sent to the Parliament on the 12th of the month and data submitted during a debate before the Committee of Institutions, almost 5,000 public and wider public sector employees developed businesses in the private sector by participating in private companies as shareholders, directors or and secretaries. In addition to the resulting illegality, a huge issue of tax evasion is raised, while the issue of conflict of interest should also be addressed.

Illegality in the State

A search of the Companies Registrar and the electronic file of the General Accounting Office found 1,900 civil servants holding shares in private companies, 900 civil servants being directors and secretaries in private companies, and another 900 being directors. All of them, in addition to the fact that they have not secured the permission provided by law, and therefore have committed disciplinary offenses, also committed criminal offenses, namely the offenses of making a false statement, as well as in the files of companies submitted to the Registrar. Companies have falsely stated that they are private employees or even businessmen. A criminal investigation is already underway against a senior official of the Audit Office, who set up a company, stating that he is a private employee.

Only 100 with a license

According to the Department of Public Administration and Personnel of the Ministry of Finance, in the last 10 years only 123 civil servants have applied for the required license to participate in private companies, of which 100 have been approved. This license, which allows civil servants to participate in private companies, is granted by the relevant ministers only in cases where its granting serves the public interest or when the interest of the employees/officers in the company, cooperative or private enterprise came by inheritance, provided that the possession of the shares does not affects and is not incompatible with the performance of their duties.

Illegality in the semi-governmental

employ 9,092 employees. The Audit Office's investigation revealed the following:

1 In eight organizations involving 494 employees, they do not seem to have any provision in their regulations or legislation that prohibits participation of employees in private companies. These are the following organizations:

  • {Bullet {let Bullet} RIK: Out of the 323 employees, it was found that 36 hold shares, 24 hold the position of director and another 23 hold the position of secretary.
  • {Bullet} {Bullet} Open University of Cyprus: Out of 98 employees were found to hold six shares, four hold the position of director and another four the position of secretary.
  • Municipalities of Deryneia and Livadia.
  • Foundation for Research and Innovation: Of the 57 employees, five were found to hold shares, three to hold the position of director and two to hold the position of secretary.
  • Cyprus Petroleum Inventory Management Organization.
  • Athienou Sewerage Council.
  • Paphos Household Waste Disposal Council.

2 In 71 cases of organizations/authorities/municipalities/councils, the Audit Office identified 535 employees who appear, based on their identity number, to hold shares in one or more private companies. He also identified 321 employees as managers and another 301 as secretaries in private companies. Many of the above are both shareholders and directors or secretaries of private companies.

According to the lists announced in Parliament by the Audit Office, most of the employees who were identified as holding shares and participating in the boards of directors private companies come from the following organizations:

  • EAC: Out of the total of 2,122 employees, it was found that 108 hold shares, 52 hold the position of director and another 59 hold the position of secretary.
  • CYTA: Out of the total of 1,584 employees, it was found that 122 hold shares, 58 hold the position of director and another 60 secretary positions.
  • Nicosia: Out of a total of 149 employees, 13 were found to have shares, 10 hold a director position and another six secretary positions.
  • Hellenic Capital Market Commission: Out of the total of 127 employees, it was found that 14 hold shares, nine hold the position of director and another six hold the position of secretary.
  • Central Bank: Out of the total of 290 employees, it was found that 13 hold shares, 10 hold the position of director and another 10 the position of secretary.
  • Organization of Public Health Services (OKYPY): Out of the total of 973 employees, it was found that 36 hold shares, 27 have the position of director and another 23 the position of secretary. li>
  • University of Cyprus: Out of the total of 834 employees, it was found that 61 hold shares, 46 hold the position of director and another 31 hold the position of secretary.
  • TEPAK: Out of the total of 403 employees, it was found that 27 hold shares, the 18 have the position of director and another 17 the position of secretary.

Letters for persecution

The Audit Office informed the Parliament that it had sent letters to the general directors of the ministries – sub-ministries, as well as to the independent officials, together with the findings of its audits for their own actions. That is, to proceed with persecution. It will do the same with the organizations of the wider public sector. The issue is expected to concern the members of the Institutions Committee in the near future, in order to find out whether the prosecutions have progressed.

It is noted that in the past, a case of a civil servant for participating in a private company without a license was brought before EDY. He was found guilty and fined € 5,000. Nine cases of teachers participating illegally in private companies have been brought before the EVS. The highest fine imposed was € 1,500.

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Source: politis.com.cy

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