Filenews 8 March 2022
Weaknesses and omissions regarding the management of areas of the European Ecological Network "Natura 2000" and non-compliance with relevant Directives, as well as provisions of national legislation, are found by the Audit Office in a special report for the Ministry of Agriculture, Rural Development and Environment.
Specifically, it refers to arbitrary interventions and illegal constructions, omissions in relation to the approval of beach use plans, approvals of urban planning applications and changes of urban zones, without complying with the legislation for environmental evaluation and failure to prepare the provided environmental evaluations.
Also, as stated in the general conclusions of the report, accounting manipulations are not in line with the accounting principle of actual receipts and payments, on the basis of which the financial statements of the Republic were prepared, since no actual cash flow was generated.
At the same time, there is a report of incomplete compliance with the provisions of the relevant Laws, Regulations and Circulars of the Treasury governing the making of payments and the collection of revenues.
Most important financial audit findings
a. Accounting operations are not in line with the accounting principle of actual receipts and payments, on the basis of which the financial statements were prepared, since no actual cash flow was generated.
b. Weaknesses and omissions in the process of processing payments, such as the improper recommendation and authorization of payments, non-sealing of the documents attached to the payment forms with the indication "PAID" and non-sealing of invoices / documents with the date of their receipt, either from the Archive or from another responsible Officer of the Department.
c. Failure to pay debts on time.
d. Weaknesses and omissions in the updating of the Contract Registry.
e. Failure to ensure the effective management of state sponsorships, since the obligations provided for by the recipients were not fulfilled in all cases.
F. Weaknesses and deficiencies regarding the procedure for the approval, enforcement and monitoring of administrative fines in the Veterinary Services (CM).
g. Non-compliance with the agreement for the provision of educational leave by a Veterinary Officer, without the CyS demanding from him, nor from his guarantor, the payment to the Government of the provided compensation.
h. Failure to resolve the dispute between the Water Development Department (WDD) and the Contractors of the Water Desalination Plants of Limassol and Larnaca, regarding the calculation of the unit price.
i. Significant financial differences between the WDD and the Sewerage Boards, concerning the government's contribution, inter alia, to the operating and maintenance costs of tertiary treatment water plants.
j. Uneven handling of the administrative costs charging policy of the Sewerage Boards to the WDD, in relation to the operation and maintenance of tertiary treatment water production stations and lack of an appropriate regulatory framework.
Ia. In relation to the payment of a Government Contribution of €6.1 mil. to the Sewerage Board of Limassol - Amathus (SALA), to cover the costs of tertiary processing, the WDD did not document the 40% apportionment rate it used on the total expenses for the construction of the treatment plant.
Ib. The WDD carried out a payment of €5.5 million, on behalf of the State, as guarantor, to a Consortium, for the payment of accrued services owed by the Council for the Exploitation of Sites for the Disposal or Recovery of Residential Waste of the Provinces of Larnaka, Momagusta, which had become due, without confirming the correctness of the amount, on the grounds that it is controlled by the council in question.
M. Weaknesses and omissions in the revenue collection process, such as the non-timely deposit of collections, the non-conduct of unannounced checks at the Cashiers by the Heads of the Departments, incomplete completion of the collection statements, improper inspection of the collection books and remittance registers and improper / safe storage of cash.
N. Non-existence of safeguards in the computerized Water Pricing System (FN) of the WDD, which prevent and / or detect early cases of errors.
O. Incomplete and timely implementation of the Unified Water Management (Rights, Fees or other Monetary Rewards) Regulations (P.I. 48/2017).
P. Failure to ensure the satisfaction of the principles of transparency, equal treatment and non-discrimination in the process of leasing state forest land by the Department of Forests (TF).
Q. Non-compliance with satisfactory supporting data by the Department of Meteorology (TM) to substantiate the correctness of the value of a significant revenue.
R. Non-implementation by the Mines Service (LM) of an internal control system to verify the correctness, completeness and timely collection of rights from the use of quarrying materials
Most important findings of compliance audit
a. Department of Agriculture (TC).
(i) Viticulture and Oenology Sector. Failure to communicate the work programmes in a timely manner, failure to keep all evidence/forms properly, in relation to the checks carried out, as well as improper storage and monitoring of the wine stock kept.
(ii) Quality Products Sector. Non-harmonisation of national legislation with the European institutional framework, failure to carry out a sufficient number of audits in the field of organic farming and weaknesses in the supervision of audit and certification bodies (GLP).
(iii) Plant Protection and Beekeeping Sector. Non-modernization of the Apiculture legislation, as well as omissions regarding the control and financial support of the Plant Protection Associations.
(iv) Animal Production and Animal Nutrition Sector (CSTPPZ). Weaknesses in relation to the preparation and implementation of the Agricultural Applications Programme, as well as weaknesses in the annual review of sheep and goat farming.
(v) Phytosanitary and Commercial Specifications Sector and Legislation Control Branch. Failure to set scales of administrative fines and weaknesses in relation to the monitoring of their enforcement, as well as non-uniform handling of irregularities/illegalities by all District Agricultural Offices (SG). Also, improper storage and non-endorsement of control forms, as well as weaknesses in the conduct and monitoring of audits at a sample of retail outlets. Additionally, weaknesses in relation to the legal framework and the procedure for carrying out official controls for the classification of carcasses of bovine animals and pigs and the reporting of the relevant values.
(vi) Agricultural Applications Programme. Deficiencies in relation to the preparation, implementation and monitoring of the Agricultural Applications Programme.
(vii) Department of Aromatic and Medicinal Plants. Delay in computerization of the process of production, sale and storage of plants and provision of plant services.
(viii) Seed Production Centre (CRS). No relevant plan for the rationalization of the CRS was elaborated and, by extension, was not implemented, in order to improve it, on the basis of the findings of a relevant study carried out in 2019. Also, omissions in relation to the observance of the warehouse ledgers and the monitoring of the inventory.
(ix) Other issues.
- Weaknesses and omissions during the monitoring and investigation of complaints against Officers of the Department.
- Weaknesses and omissions regarding the management of the fleet of vehicles, discrepancies between the data of the Vehicle Movement Book (BKO) and the report of the Fleet Management System (GPA), violations of a speed limit exceeding 120 km and non-compliance with the relevant provisions in the Regulations of Government Warehouses.
b. Veterinary Services (KY).
Illegal livestock farms within the "Natura 2000" Network. Following an investigation into a complaint by a large number of bodies and non-governmental organizations, the date of the 8.8.2016, which was also notified to our Service, we proceeded to the examination of the matter in question and issued the relevant Special Report with no. WP/01/2020, date. 3.3.2020. Regarding the above, we noticed that:
- There appear to be violations of the provisions of a number of laws of the CyS.
- Questions arise as to the health monitoring of the plant as well as the way in which the expected large quantities of milk or meat produced by the livestock unit are disposed of, with all the consequent risks to public health.
- Illegal livestock farms continue to exist and operate, years after the remarks of the competent Authorities of the State.
All the issues that arose were raised in September 2020 before the Attorney General, in order to assess whether the negligence by the competent Departments, in relation to the implementation of the laws that fall within their competence, justifies the search for criminal or disciplinary responsibilities and whether there are other measures that should be taken at the same time, for the immediate restoration of legality and safeguarding of public health.
c. Geological Survey Department (TGE).
(i) Legislative regulation of the responsibilities of the Department. The preparation and approval of relevant Regulations, for the determination of the fees for the application and the permit for the preparation of a geological survey, as well as a permit for the use of a government drilling, are pending and the fees were collected on the basis of transitional provisions of the relevant legislation.
(ii) Vehicle Traffic. Weaknesses and omissions, in relation to the use of vehicles.
d. Department of Fisheries and Marine Research (DFMR).
Mooring of vessels at paralimni fishing shelter
The DFMR issued a large number of extrajudicial fines to a specific company, without them being settled and without the Department proceeding to its criminal prosecution. Moreover, although a specific vessel was docked without a license and its large size affected the operation and safety of the fishing shelter, the DFMR did not apply the provisions of the relevant legislation, while the docking of another vessel, without having a berthing license, showed incomplete supervision of the fishing shelter in question. There was also an attempt to intervene, by the then Minister of The General Secretariat for Public Works, to issue a berthing permit to a vessel, without having such authority and without justifying the reasons why he considered that he should or could intervene in the powers of the Director of the DFMR, giving instructions for the mooring in question, in violation of the provisions of the General Principles of Administrative Law Law Law (L.158(I)1999). In addition, questions were raised as to the legality of the whole process of issuing an annual berth permit to non-fishing vessels to replace fishing vessels.
e. Department of Environment (IT).
Issues related to the protection of areas of the "Natura 2000" Network.
- Arbitrary interventions and illegal constructions on the coastal front of the Communities of Argaka and Gialia in the District of Pafos, within the area of the Network "Natura 2000" Site of Community Importance (TCI)/Special Conservation Zone (SAC) Area of Polis – Gialia.
- Weaknesses and omissions in relation to the approval of the plan for the use of Asprokremmos beach in the Community of Neo Chorio in the Pafos District and the ongoing process of leasing state forest land in the State Forest of Halavron and the Akamas National Forest Park, within areas of the "Natura 2000" Network.
- Approvals of urban planning applications and changes of urban planning zones, without complying with the legislation for environmental evaluation.
- Causing environmental pollution from the operation of an illegal biological station in Kalopanayiotis.
