Monday, June 23, 2025

AUDIT FOR AKAMAS - FAILURES AND COST OVERRUNS

 Pafos Press 23 June 2025



The Audit Service issued a special report auditing four contracts of the Department of Forests related to the implementation of two key actions of the Sustainable Development Plan (SDP) of the Akamas National Forest Park (NFP), which is co-financed by the "THALEIA 2021-2027" Program with European funds of €16.5 million. 

In the introduction, Andreas Papakonstantinou states that,

 The two actions include: (1) the improvement of the main road network of the Park (Phase A') and (2) the construction and management of fourteen infrastructure nodes. The audit aimed to ascertain the correct implementation of the procedures for the announcement, award and management of contracts, in accordance with the principles of good administration and legality. The environmental consequences were not examined. These will be the subject of another Report which is being prepared. 

The audit findings highlight deficiencies and omissions on the part of the TD that led to delays, additional costs, and failure to safeguard the public interest. For the improvement of the road network, a significant delay was found in the termination of the construction contract even though it was obvious that there was a serious deviation from the schedule. The TD did not act in a timely manner, resulting in additional claims from the contractor of around €500,000. 

The possibility of liquidating guarantees of €1 million was also lost. Regarding the project study, incomplete definition of objectives was found, resulting in delays and the need for an additional supervision contract. In addition, award procedures were used without prior publication, in violation of the relevant legislation, both for part of the study and for supervision, which led to incorrect decisions and violation of regulations.

For the management infrastructure nodes, the TD announced the relevant contracts before the required Environmental Opinion was secured, which resulted in forced changes to the study, a cost increase of 135.3% and serious delays (89.86% beyond the contractual duration). Furthermore, the TD's response to the submission of clarifications and data to the Central Committee for Changes and Requirements was delayed, creating administrative costs and dysfunction in the management of the contract. Overall, the audit highlighted the need for substantial improvement of the TD's procedures in order to ensure the effective, economical and efficient implementation of the projects in the Akamas EDP and compliance with the relevant legislation.   

Given the importance of the area, special attention and sensitivity are required from the authorities responsible for implementing the projects. It is recalled that all work in the area has been suspended following a decision of the Council of Ministers due to the environmental issues that have arisen.