Filenews 20 October 2023
Criminal offences have been or are still being investigated against community leaders in connection with cases they handled, as stated in a report by the Auditor General, whose Office examined public procurement issues of 32 community councils, following complaints submitted.
Among the cases for which instructions have been given to examine from a criminal point of view, in recent years has been the replacement of water meters in Agios Tychonas. The replacement of the cash was, according to the Auditor General, entrusted to relatives of an official of the Union of Communities.
Moreover, in Dora a water pumping machine was purchased by a relative of the President of the Community, who was charged in writing and the case was registered in Court. The Limassol District Court decided to impose on the President of the Community Doras, by his own admission, a seven-month prison sentence, suspended for three years, for the offence of abuse of power.
In Kolossi, irregularities were detected in a tender concerning the separation of plots for self-housing of displaced persons. A criminal file was prepared by the Police for criminal prosecution purposes.
In Stavrokonnou, alterations of measurements on water consumption recording cards and loss of cards were detected, which was denounced by the president of the community.
Complaints about financial and other irregularities were filed by the District Officer of Pafos and against the president of the community council of Tsada.
The Controller also records the following cases:
> Purchases were made or work was assigned to a company of interests of the children or the presidents of the community councils of Kolossi and Pissouri.
> An offer was awarded or work was assigned to a relative of the secretary or a member of the community council, while attending the meeting, until the final decision was taken. Such cases have been recorded in the community councils of Agios Tychonas, Armos, Emba, Tsada, Agridia and Pissouri.
> Assignment of work to a member of the community council in the community councils of Agridia and Emba.
Complaints were submitted about the direct assignment of work to members of community councils and/or relatives of members of community councils or their employees, as well as the purchase of products by companies of interests of community council members. Such complaints were submitted to 34% of the community councils examined.
The investigation of the Audit Office revealed the following:
– Direct purchase of materials without the request for offers.
– Award of contracts to tenderers who did not submit the lowest (economically advantageous) bid, without any/sufficient justification.
– Non-recording of traffic and vehicle fuel data of Community Councils (CS).
– Change of the terms of the contract, after the award of the tender, for the purchase of water meters by community councils. Supply of water meters without a receipt note and without having been registered in the relevant material registration registers, alterations in the recording of water consumption and existence of illegal meters.
– Direct award of studies to private consultants (CMEs), without asking for tenders and, sometimes, without concluding a contract. Weakness of community councils in the preparation of complete/quality tender documents for the purchase of consulting services.
– Inadequate control by the District Administrations (ED) or delay in taking measures by the Armed Forces in incorrect management of construction projects of CP.
– Erroneous/unlawful decisions of PA, as well as mismanagement in contracts of PA.
– Payment of payments to contractors (contractors, etc.) without presenting invoices/evidence/receipts.
– Hiring a secretary by the method of purchasing services through a flawed procedure.
– Failure to invite all members of the CPs to meetings and/or failure to inform all members of the CPs about the decisions taken.
– Inability to properly and substantiate the minutes of the CP sessions.
Especially for the assignment of works, the exhibition mentions that it is often observed that work is assigned and/or materials/products are purchased to/by relatives of members of CC. In addition, direct assignments are often made to other bodies for the provision of various services within the communities, without following the prescribed procedures set out in the relevant Law and the relevant regulations, resulting in unlawful decisions, which violate the principles of transparency and equal treatment of Economic Operators.
The general conclusions of the report also record the decisions taken and actions taken, which are not recorded or documented in the minutes of the meetings of the CP.
Irregularities and criminal prosecutions in communities
Other findings recorded in the Auditor General's report:
> There is a delay or omission in sending the minutes of the meetings of the CPs to the Armed Forces for the necessary legality check, resulting in works/projects being carried out without obtaining approval/assent from the relevant District Administrations. However, the opposite is also observed, i.e. while community councils send the minutes of meetings to the District Administrations in a timely manner (for the relevant legality check), they unjustifiably delay in carrying out this control, resulting in community councils proceeding with the execution of works/projects before receiving the necessary approval from the District Administrations.
> Contracts are awarded to tenderers who did not submit the lowest financial bid, on the basis of the provisions of the tender documents, a practice which, on the one hand, violates the provisions of Law N.73(I)/2016 and the principles of equal treatment between Economic Operators and, on the other hand, does not safeguard the public interest.
> There is a change in contract terms, after the award of tenders, as found with the purchase of water meters by a specific community council. In addition, there are omissions/gaps/weaknesses, both in the recording of materials in the material registers and in the keeping of the mileage log book for the vehicles of the CV, thus making it difficult to control them, actions that do not safeguard the public interest, in case of improper management of these resources of the CP.
> There are often weaknesses and omissions in the preparation of complete/quality tender documents by community councils, both for works contracts and for the purchase of CME services, as well as in the conclusion and management of contracts with private CMOs, resulting in problems at the implementation stage of these contracts, which do not safeguard the public interest.
> It is often the case that community councils directly award project studies to private parties, without calling for tenders, and sometimes do not even conclude a written agreement with them. As a result of the above omissions/weaknesses, the public interest is not adequately safeguarded, as problems often arise, either at the stage of implementation of the aforementioned contracts, or at a later stage, during the execution of projects, due to shortcomings/gaps in the services offered by the consultant designers.
> Erroneous/unlawful decisions of community councils are very often observed, while issues of mismanagement arise in community council contracts, such as the assignment of tasks without convening a meeting of the competent body for the evaluation and decision-making, etc.
