Filenews 11 November 2025 - by Angelos Nikolaou
Serious weaknesses and possible irregularities in water management by the Department of Water Development (WDD) are revealed in a new Special Report of the Audit Office, released today.
In the Report on the management of Cyprus' water resources, there is talk of inadequate control, delays in debt collection, problems in water billing software and omissions in project and borehole inspections, remarks that erode good administration and undermine transparency.
According to the report, the Computerised Water Billing System (STI) has serious weaknesses: access rights are not properly respected, traces of actions are not fully recorded, and data security is considered precarious.
At the same time, omissions were found in water meter controls, even at key points that cover a large percentage of consumption in the Nicosia District. Specifically, it is stated that "the accuracy of the water meter readings at two key points of introduction, which represent 64% of the total water consumption of the Nicosia district, was not checked at regular intervals by the WDD". It is also noted that the WDD did not have access to the water meters of the Limassol Water Supply Board, nor to the telemetry system of the Larnaca Water Supply Board, resulting in uncertainty in relation to the accuracy of the quantities invoiced.
The Audit Office finds that the amounts receivable of the WDD amounted to €147.7 million, with a large part of them relating to arrears of Local Government Authorities (€69.2 million) but also amounts related to the supply of water to Turkish Cypriot villages (€58.1 million) which are not invoiced based on a political decision.
The report also speaks of over-pumping from drilling, delayed or incomplete legal action, and violations of water rights in communities affected by the Kliros dam.
In some cases, the inspections "never took place", while in others, concessions of water quantities were found without sufficient documentation or permit. As noted, "the WDD did not take effective measures, based on the possibilities provided to it by law, to stop over-pumping (beyond any legal measures)."
The audit also revealed delays in taking legal action to collect debts, and in some cases no proceedings were initiated at all. The failure to implement effective measures to deal with overpumping of significant quantities of water by private companies, which continue to operate without adequate control, with a risk to the water supply of the areas where they operate, is of serious concern.
According to the Report, the WDD granted significant quantities of water to private companies for irrigation of plantations, without following the legal procedures and without sufficient documentation, in Monagroulli, Kornos and Delikipos.
The Audit Office points out that this practice raises an issue of equal treatment, as these companies seem to have benefited from favourable terms, compared to other users or farmers who are obliged to pay the full cost of irrigation. In addition, it is observed that no contracts had been drawn up with clear terms, nor were control procedures implemented for the quantity and destination of the water granted.
According to the findings, the WDD did not always seek the relevant approval from the Council of Ministers or the competent Water Committee, while in several cases the concessions were made without ensuring the legality or transparency of the decisions.
Also, cases of overconsumption and non-pricing of water by businesses were identified, as well as untimely promotion of water sufficiency enhancement projects in areas such as Polis Chrysochous and Tylliria, despite the completion of a relevant study from 2022.
Papakonstantinou: "Need to strengthen measures"
In the foreword to the report, the Auditor General notes that these findings highlight the need for better organization, stricter supervision and more efficient use of WDD resources. "The strengthening of control mechanisms, timely decision-making and the existence/implementation of a long-term strategic plan away from spasmodic movements to solve chronic problems, are basic conditions for a modern, responsible and sustainable water policy," he adds.
The response of the WDD: "We adopt the recommendations, we face obstacles"
The Water Development Department, through an information note to the Audit Office (dated September 5, 2025), admits the problems but states that it has taken action to correct them.
Specifically:
● Regarding the pricing process, the WDD states that it fully adopts the recommendations of the Audit Office and is working to upgrade the Water Pricing System.
● Regarding the debts of the Turkish Cypriot villages, he notes that instructions were given by the Ministry of Agriculture to write off the relevant amounts from the list of arrears of revenue.
● For the Local Government Authorities, he explains that their debts are notified to the Ministry of the Interior, which has the responsibility to make offsetting deductions through state sponsorships.
● Regarding drilling and overpumping, it states that in cases of violation of the terms of licenses, warnings are issued and, where necessary, legal complaints are made.
● Regarding understaffing, the WDD emphasizes that this is the main reason for delays in inspections and controls, assuring that "every effort is being made" to implement the recommendations. He notes, however, that due to severe understaffing, not all cases of drilling that have to be inspected for a long period of time are expected to be covered immediately, while at the same time he states that he is proceeding with the gradual pan-Cypriot implementation of the imposition of Environment and Resource Fees on drilling.
The WDD also states that it is strengthening transparency in the overtime control process, issuing new circulars on staff working hours and remuneration, while preparing studies for pending projects such as the Klirou dam and the land consolidation in Choletria.
