Cyprus - Corruption
The law provides criminal penalties for corruption by officials and the government generally implemented the laws effectively. Although the government generally investigated and prosecuted cases of corruption, there were numerous reports of government corruption during the year.
Transparency International, the global anti-corruption watchdog, ranked Cyprus 38 out of 180 countries in its 2018 Corruption Perception Index. Disagreements between the Berlin-based headquarters of Transparency International and its Cypriot division in 2017 led to the disaccreditation of the latter in 2017 and the launch of a successor organization on the island called the Cyprus Integrity Forum.
Corruption, both in the public and private sectors, constitutes a criminal offense. Under the Constitution, the Auditor General controls all government disbursements and receipts and has the right to inspect all accounts on behalf of the Republic. Private sector concerns focus on the inertia in the system, as reflected in the Auditor General’s annual reports, listing hundreds of alleged incidents of corruption and mismanagement in public administration that usually remain unpunished or unrectified. A 2016 survey found 65 percent of local CEOs listed bribery and corruption as the top threat to their companies’ ability to conduct business.
GAN Integrity, a business anti-corruption portal with offices in the United States and Denmark, released a report on corruption in Cyprus April 2018 noting the following: “Although Cyprus is generally free from corruption, high-profile corruption cases in recent years have highlighted the presence of corruption risks in the Cypriot banking sector, public procurement and land administration sector. Businesses may encounter demands for irregular payments, but the government has established a strong legal framework to combat corruption and generally implements it effectively.
Bribery, facilitation payments and giving or receiving gifts are criminal offenses under Cypriot law. The government has a strong anti-corruption framework and has developed effective e-governance systems (the Point of Single Contact and the e-Government Gateway project) to assist businesses.”
Cyprus cooperates closely with EU and other international authorities to fight corruption and provide mutual assistance in criminal investigations. Cyprus ratified the European Convention on Mutual Assistance in Criminal Matters. Cyprus also uses the foreign Tribunal Evidence Law, Chapter 12, to execute requests from other countries for obtaining evidence in Cyprus in criminal matters. Additionally, Cyprus is an active participant in the Council of Europe’s Multidisciplinary Group on Corruption. Cyprus signed and ratified the Criminal Law Convention on Corruption and has joined the Group of States against Corruption in the Council of Europe (GRECO).
In 2006 the Council of Ministers appointed an independent committee to investigate complaints of police bribery, corruption, unlawful financial gain, violation of human rights, abuse of power, preferential treatment, and conduct unbecoming of police officers. In July 2007, to help it manage the large number of cases, the committee was given authority to appoint independent investigators from a list submitted by the attorney general. In 2007 the committee received 96 complaints. Of those, 21 were deemed outside the scope of the committee's responsibility and one complaint was withdrawn; 35 complaints were investigated by the members of the committee or independent investigators supervised by the committee; 13 complaints were still under investigation; the attorney general assigned 11 complaints to criminal investigators at the request of the committee; eight were submitted to the chief of the police; in three cases, investigation was suspended because the complainants refused to give testimony; and four complaints remained pending due to inadequate information provided by the complainants.
Of the 35 investigations carried out, two resulted in criminal charges against officers; three resulted in disciplinary charges; and 28 failed to reveal any wrongdoing on the part of the police. In two cases, the committee established that police officers engaged in mistreatment of citizens, but it was not possible to identify the officers involved due to inadequate testimony. The committee chair confirmed that the attorney general adopted all the recommendations made by the committee.
The escape of double murderer and rapist Antonis Procopiou Kitas on 12 December 2008 prompted a series of investigations into possible corruption of police and other government officials. Kitas fled from a Nicosia private hospital where he had been staying for seven months although he was serving a life sentence. The minister of justice and public order resigned over the escape, while the government appointed five independent criminal investigators to investigate the escape and the possible involvement of police and government officials. The attorney general said the case "smacked of corruption, negligence, and indifference." Two separate investigations were also ordered into how Kitas acquired a new passport and into the conditions under which Kitas was allowed to stay at the hospital for such an extended period of time. The August 2020 leak of documents called The Cyprus Papers revealed 2,500 people who paid to become new citizens of Cyprus with the added perk of be able to live and work anywhere in Europe, from Milan to Monte Carlo. So who’s on the list? Among the names in The Cyprus Papers are convicted criminals, men on the run and political figures regarded as a high-risk for dirty money. Thousands paid to receive Cypriot citizenship under a citizenship-by-investment scheme.
The Cypriot government had long considered what is today known as the Cyprus Investment Programme (CIP) to be a major revenue stream - some estimates say it has generated about $8 billion. For those with money to spare, the advantages that come with a "golden" Cypriot passport are clear: the ability to deposit their money in European bank accounts and live, work and travel freely not only in Cyprus, but across all 27 European Union nations, and visa-free travel to 176 countries - all at the "reasonable" price of a minimum investment of about $2.5m, most of which must be spent on real estate.
On 11 June 2018, the trial of a senior official of Larnaca Municipality for theft and obtaining money under false pretenses began. The official allegedly accepted 35,000 euros ($40,000) from a local businessman to legalize building irregularities at his restaurant and deposited part of the money in his own bank account.
The law requires the president, members of the Council of Ministers, and members of parliament to declare their income and assets. The publication of their declarations is obligatory, but there are no specific sanctions for noncompliance. Spouses and children of the same officials are required to declare their assets, but the publication of their declarations is prohibited. Other public officials are not required to declare their assets.
Cyprus had taken steps in 2018 to address recognized regulatory shortcomings in combatting illicit finance in its international banking and financial services sector, tightening controls over non-resident shell companies and bank accounts. Judicial reform is still needed to address inefficiencies and delays in contract enforcement and commercial litigation.
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
