Filenews 29 June 2025 - by Fanis Makrides
The long-standing scandal with the sublease of state land to sports clubs and Federations by the Cyprus Sports Organization (CSO) has now taken on criminal dimensions.
The case is now being handled by the prosecuting authorities of the Republic, as there are complaints from competent state officials for committing serious crimes.
These have to do with land that was granted by the state (Ministry of the Interior) to the CMO, which in turn subleased it to sports clubs or other bodies. In the end, this land was not only not used for the purpose for which it was granted, in violation of the provisions of the contract signed with the Organization, but in some cases ended up being exploited/exploited by private individuals which in this way made profits at the expense of the taxpayer.
Documents and cross-referenced information of "F" leave no doubt about what we are recording. It is indicative that an official with good knowledge of the facts surrounding the undisputed scandal said that a complaint made concerns offenses resulting from the waste of public money and abuse of power. With this report, he "photographed" public officials, whose negligence is characterized as criminal and may reach the limits of fraud.
From spring
Cross-checked information of "F" states that the issue seems to have been very seriously concerned by the Ministry of Education last spring and specifically by the political head Athena Michaelidou and senior officials.
Finally, the same information states that during the examination of the issue, evidence was gathered and finally a letter-complaint was sent by the Ministry's management to the Attorney General, Giorgos Savvidis, in which the data that make up the picture of the issue in question were taken into account.
According to cross-referenced information, the case was forwarded by the office of the head of the Legal Service of the Republic to the Cyprus Police for investigation. A source of our information told us that the matter was initially handled by a branch that falls under the Crime Fighting Department of the Police Headquarters.
After the evaluation of the case (investigators allegedly also received testimonies), it was decided that some issues should first be further investigated by officials of the Ministry of Education and then the case should be forwarded to the Police in order to proceed with the investigative work.
Police confirm
"F" appealed to the Police asking for official information in relation to the chapter of subleases of real estate to sports bodies and the complaint. A competent source confirmed that indeed "a letter has been received from the Legal Service following a complaint by the Ministry of Education" and that "it concerns land and/or buildings leases from the CMO". He did not want to make any other position.
X-ray of the problem
"F" spoke with officials and people who have an idea of the situation from their position. Trying to attribute to our newspaper the current situation, they spoke of actions that refer to deception of the state and the taxpayer.
As explained to us, the land is leased by the Ministry of the Interior, Department of Lands and Surveys to the CMO. In turn, the Sports Organization subleases it to sports bodies, in order to contribute to the development of sports. The contracts in many cases exceed 30 years, while the terms provide for the construction of sports facilities in a reasonable period of time.
"In many cases, sports or other bodies not only do not fulfill the basic terms of the contract, but they also outlaw by renting the land to private individuals and there are various misdemeanours," said a good connoisseur of the events.
"Land is subleased for the construction of an indoor sports hall and eventually they make taverns, canteens or whatever else the mind can think of," the same person added.
Another person told us that "it is proverbial the case of an association to which land was subleased and is finally famous in Nicosia for the ofto it serves on the subleased land".
Findings
In general, the findings from those who are familiar with the issue are common:
>> clubs have taken land, erected a sports facility that illegally encroached on private property. Cases ended up in the Court. As we were told about one case, the state will be forced to expropriate land and come out doubly lost.
>> The rents for the land are not paid by the sports clubs and the Federations either, even though the rent is very low.
>> Sports facilities were erected without a planning permit and a building permit.
>> From the beginning, it was subleased to entities that are not related to sports, nor can they contribute to its development.
>> Clubs have taken land for the creation of a specific sport, however, they do not have a single registered person who is involved in the sport.
>> Installations in a forest area do not have a permit from the Department of Forests, which has made representations pointing out the dangers and requesting the demolition of premises.
>> It should be noted that there are about 200 contracts for subleased land to sports clubs and other bodies.
Documents: The picture is attributed with 35 high-risk cases
- We disclose the content of the Agency's officer investigation
"F" secured the content of the Cyprus Sports Organization's research in relation to the land it subleased to various bodies.
A competent CMO officer collected data over a period of about one year and on May 28, 2025 he concluded the cases of high-risk employees.
In other words, to the entities that received state land through the Organization, but not only did they not fulfil the obligations of the contract, but there are doubts as to whether they will do so.
The 35 high-risk employee cases it ended up with are the following:
Nicosia Horse Racing Club, Pomos Community Council, Konia Community Council, ASPIS Geri Association, Ethnikos Assias, Omonia Nicosia Club, PAOK Kythraia, Cyprus Ski Club, "Andreas Kariol" Underwater Activities Club, ARION Ergaton, Doxa Paliometochou, Olympiacos Nicosia Association, Liopetri Community Council, Workers' Community Council, THOI Lakatamia Club, APOEL Nicosia Club, Michael Olympios Club, Kavazoglou – Misiaoulis Sports Club, Community Council of Agia Varvara, KOP (Kornos), Adonis Idaliou, Community Council of Farmaka and Kampia, Orthodox Cultural Center of Agios Raphael-Nikolaos and Irene, Charalambos Pettemeridis Association, Community Council of Agios Tychonas, Digenis Akrita Morphou Association, Municipality of Aglantzia (skateboard track), Community Council of Agridia, Parthenon Latsia, APOP Association of Palekythro, Onisilos Lakatamia, Community Council of Alethriko, Community Council of Tersefanou, Union of Kokkinotrimithia, New Limassol Stadium.
Here are typical cases for which remarks are made by the CMO officer who conducted the investigation:
>> For the Horse Racing Club (ADX763/84) it has been acquired with the aim of using it for training and sports purposes. However, the suggestion made is to terminate the contract with the Club. Not only because it is not a sports body (the land was wrongly subleased), but also because it does not pay rent (the contract lasts 33 years). As it has been established, an incident that took place on the disputed piece of land has ended up with the Police.
>> Community Council of Pomos: Subleased land (ADΧ188/85, 33 years) for the creation of a football field and other related sports facilities. And this at a time when there is no football team in Pomos.
>> Ethnikos Assias was subleased (ADX219/2002, ADX567/2007) for the construction of a multi-purpose hall for sports purposes, offices, parking and green space. However, it does not have athletes who use a closed hall in the Health Card Registry. At the same time, there are suspicions that a building will be built in violation of the provisions of the sublease agreement.
>> For Doxa Paleosharetou (ADX439/97) there is a legal development in progress with a complaining private individual, who claims that part of the sports facility is in his real estate.
>> Regarding the THOI of Lakatamia (ADΧ361/1991) it should be noted that while the use of the estate was exclusively for sports purposes, it should be checked whether the club is exercising economic activity (operation of a venue).
>> The sublease of the CMO to the KOP of the area in Kornos (ADX500/2010) for the creation of a training center is also characterized as high risk. The Organization leased state land of 143,827 sq.m in Kornos and signed a sublease agreement to the CFA, with a duration until 25/07/2052. According to the Organization's official, the CFA did not respond to a relevant letter sent to it in July 2024 in order to provide data on the degree of implementation of the contract.
>> Among the cases that are of concern is that of the Orthodox Spiritual Center of St. Raphael, Nicholas and Irene (ADΧ485/2006). Apart from the fact that it did not implement the terms of the contract (construction of a multipurpose sports center), there is concern as to whether the development of table tennis is the responsibility of the church.
What the President of the CSO, Yiannis Ioannou, said to "F"
The president of the Cyprus Sports Organization, Yiannis Ioannou, when asked by "F" to take a position on the issue of subleases, said that he has given instructions from 2024 to conduct a relevant investigation. He said that data have been examined since 1969, when the Organization was founded. He acknowledged the wrong actions that have been taken over time in relation to the issue, while he said that he is well aware of the cases, assuring that there is a will for a thorough handling of the issue.
Complaint about a shooting range and a foreign investor
Information indicates that a complaint was filed with the Police in relation to the sublease of shooting range facilities of the sport of shooting to a foreign investor and in violation of the agreements with the State. As we were told, the complaint concerns criminal offenses.
The investigation began after a letter from the Land Registry
The investigation by the Cyprus Sports Organization on high-risk contracts with clubs and other bodies began following a letter from the Department of Lands and Surveys on 18/6/2024, which asked to be informed about the "subtenants who have not utilized the state land under lease and have not implemented the purpose of the lease". This was followed by the investigation by the CMO and the conclusion of at least 35 high-risk cases.
Inability to collect, but also absence of mechanism
The inability to collect rents and the absence of a suitable mechanism has also been highlighted in reports by the Audit Service of the Republic. The following references from reports of the Audit Office over the past five years are typical:
- Non-compliance with International Financial Reporting Standards (IFRS) 16 and 9 regarding the handling of leases/subleases of real estate and the expected credit loss to commercial receivables, respectively. The private auditors recommended compliance with the requirements of the relevant standards.
- There are many debit balances that have been pending for years and concern sports bodies that use the facilities of the CMO without paying the corresponding fee on time. There is also no substantial and efficient mechanism in relation to their collection. The private auditors recommended that the appropriate measures be taken and the necessary actions be taken for the monitoring and collection of these balances.
In a document obtained by "F" during its investigation into the subleases of state land and presents debts of associations, Alki Larnaca is also included, which has now been deleted as an association. "The club is closed" is written on the relevant table.
