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New government’s responsiveness better but there are still issues, Auditor General tells CNA

Auditor General of Cyprus Odysseas Michaelides, has told CNA that the communication between the Audit Office and the new government has significantly improved compared to the previous administration, pointing out however that there are still pending issues that need to be addressed.

In an interview with Cyprus News Agency, Michaelides noted among other things, that there were still Presidential advisors who were appointed and did not meet the minimum criteria set, such as having a university degree.

Additionally, he said that on-site inspections regarding the renovation of the Presidential Palace have begun, and announcements will follow.

Regarding the response of the new government to the issues raised by the Audit Office, the General Auditor noted that the situation was by definition much better than before.

"I cannot compare the communication I have today with President Christodoulides to the one I had previously with President Anastasiades. The current situation is clearly better," he stated.

He described the direct communication he had with President Christodoulides, saying that he could pick up the phone and talk to him. However, he said that this did not mean that he had nothing to comment on.

Regarding the issue of appointing advisors to the Presidential Palace, he said that the issue has not been resolved as expected. He recalled that there were promises made by the President on the matter, such as the preparation of a draft law. He added that the Audit Office, with the exception of some minor observations, believes that the draft law largely addresses its concerns on the issue.

On the contrary, the General Auditor pointed out that the President said that Ministers' advisors or those appointed at the Presidential Palace who did not meet the minimum criteria set out in the legislation for MP assistants would leave, but this did not happen.

"We are concluding the audit now, and we will release a report or announcement at the beginning of next week. This has not been done. There are still advisors in the Presidential Palace who do not have a university degree," he said.

He added that the President's position, was that this will happen once the draft legislative proposal becomes law. He noted that this was illegal, as someone could not be employed as an advisor, a position that requires specialised knowledge, without a university degree.

He also praised the manner in which the new government and the Minister of Interior handled the issue of state land allocation by following all the recommendations of the Audit Office.

Inspection for renovations at the Presidential Palace has begun

Michaelides also said that his office was carrying out an inspection of the renovations at the Presidential Palace.

Two Audit Office employees went on-site on Thursday, gathering information, he said. According to Michaelides, the Audit Office will complete its inspection and will issue either a comprehensive announcement regarding the procedures followed or will publish a report.

He pointed out that the Audit Office believes that citizens are entitled to know how every euro was spent.

Additionally, the General Auditor said that he had started an audit regarding the advisors at the Office of the President of the Parliament, similar to how contracts for all Ministers, Deputy Ministers, and the President of the Republic were examined. He noted that an announcement would be made for all these individuals, most likely in the form of a table with their respective information, without revealing their names.

? consultative body for appointment of independent officials

Furthermore, the General Auditor noted that, as he has observed since his appointment in 2014, institutions in Cyprus function properly depending on the individuals who lead them.

He stressed that the state should ensure that those who exercise power are not selected randomly but through a proper and rational process, with necessary safeguards and institutional checks and balances.

"This ensures that these institutions work effectively regardless of the individuals involved" he said.

Michaelides referred to the election promise of President Nikos Christodoulides regarding a Consultative Council for appointments in semi-govermental organisations, which has now taken on a more concrete form. He noted that while this was a significant step, he considered it even more important to establish a consultative body with authority over the appointment of independent officials.

He emphasised that political evaluation has no place in such cases, as the political opinion of the President of the Republic should not be a concern when appointing positions such as the Auditor General, the Attorney General, the Commissioner for Personal Data Protection, and others. This person, he noted, should be politically neutral and not influenced by any political factors.

Call for Separation of Powers of the Attorney General in Cyprus

Emphasising the need for the separation of powers of the Attorney General in Cyprus, Michaelides referred to the recent Report of the European Commission on the Rule of Law, which he described as a complete validation of the positions of the Audit Office. He noted that the Audit Offices had a role in combating corruption and also the way the Legal Service operated directly affected the independence of the Audit Office.

As an example, he explained that if they wanted to obtain information from the Ministry of Defence regarding appointments to favourable positions, the Ministry would address the Attorney General to determine whether they could provide the information, and the Attorney General might prevent it. In such a case, he said, the Audit Office would report the Ministry to the Attorney General, who should function as a public prosecutor, conflicting with his other role as legal advisor.

"This dual capacity affects our office, as well as its unaccountability regarding non-prosecution or suspension of prosecution," he stated.

According to Michaelides, the Report of the European Commission highlighted these issues with an "unexpectedly clear" language. As the next step, he suggested that the President should move towards the separation of powers of the Attorney General, as he had committed to do during the election campaign. He proposed bringing advisors from abroad to the Ministry of Justice to provide recommendations on how this separation should be implemented, and added that the appropriate amendment of the Constitution should be made to a non-fundamental article.

Responding to criticisms that his interventions affect the institutions' prestige or cause delays in public contracts, Michaelides expressed the opinion that each institution preserves its own prestige.

Regarding public contracts, he mentioned that currently, an administrative review is underway for the sector.

He emphasised that the massive delays did not result from interventions by the Audit Office but rather from the state's failure to establish proper monitoring and evaluation procedures for the Committees.

Aiming for Excellence in the Audit Office

Asked about his biggest challenge, the Auditor General replied that since his appointment in 2014, his goal has been to lead the Audit Office to excellence.

"The Audit Office is transforming, constantly changing, constantly improving," he said.

He underlined that his vision was for the Audit Office to reach a very high level, comparable to other Audit Offices around the world. He added that the way the Audit Office operated had already improved significantly, so that when they go abroad, they confidently present the work of the office and feel that they are becoming a reliable unit among other Audit Offices.

He said that last June, the Contact Committee, which is the permanent committee consisting of Auditors General or Presidents of Audit Courts and the President of the European Court of Auditors, assigned the presidency to Cyprus.

As he explained, from June until October 2024, when the next session will take place in Paphos, Cyprus will be presiding over this Committee, which, as he said, was a great honor. He said that this was the result of the fact that they have now begun to prove at the European level that they were a serious Audit Office.

Source: Cyprus News Agency