An ongoing Audit Office investigation into possible mismanagement of public funds at Paphos Municipality could escalate to criminal proceedings, according to sources familiar with the probe. The investigation centers on compensatory fees, a smart city app contract, and irregular document signatures involving the municipal engineer. If wrongdoing is confirmed, the Audit Office may notify the Attorney General or the Independent Authority Against Corruption.

In parallel, police are investigating two complaints against suspended mayor Phedon Phedonos, including alleged non-payment to a carpenter and misuse of €1.5 million from the municipal employees’ pension fund. Other complaints question unauthorized property leasing, opaque staff appointments, and improper use of a municipal vehicle. The Audit Office has faced challenges collecting complete records from the municipality, complicating its efforts.

Officials met recently to outline steps for completing the report, emphasizing that municipal responses will be publicly disclosed alongside the Audit Office findings. The case remains under scrutiny with key outcomes expected in the coming weeks as the administrative audit nears conclusion.