Cyprus’s public audit oversight authority is collecting and assessing information about Deloitte Cyprus’s reported involvement in the Roman Abramovich case, despite lacking the legal powers to investigate events that occurred before its establishment in 2017.
Panos Prodromitis, Director-General of the Cyprus Public Audit Oversight Board (CyPAOB), told the Cyprus News Agency (CNA) that the authority expects to be asked to provide explanations to European authorities following a BBC investigation into the case.
He explained that the watchdog cannot formally investigate matters dating from 2003 to 2006, the period covered by the allegations, but is continuing to gather and evaluate relevant information.
Deloitte Cyprus contacted following BBC investigation
Prodromitis referred to statements made on Wednesday by the authority’s chairman, Andreas Zachariades, who is also Director-General of the Ministry of Finance, before the House Institutions Committee.
Zachariades said the authority contacted Deloitte Cyprus following the publication of the reports to request information about the firm’s involvement.
“We contacted the company involved, and they gave us their own explanations,” he said.
He noted that obtaining information about events dating back to 2003–2006 was difficult.
According to Zachariades, Deloitte Cyprus has committed to informing the authority of any additional information that emerges.
Watchdog’s powers limited to events after 2017
Zachariades explained that, based on a legal opinion obtained in connection with a separate case, the authority cannot investigate events that occurred before it was established in 2017.
Nevertheless, Prodromitis confirmed that the watchdog continues to collect and assess information because it expects to be called upon to answer questions from European authorities regarding the Abramovich case.
How the authority handles potential violations
Asked what powers the authority would have if the alleged conduct had occurred after 2017, Prodromitis outlined the procedures available under the law.
He explained that a case would first be referred to the authority’s board of directors for assessment. If there were indications of a legal violation, an independent investigating officer would be appointed.
The officer’s findings would then be assessed and referred to a disciplinary committee, which could impose administrative sanctions.
These could range from a financial penalty or formal reprimand to the removal of an audit firm from the register.
Where potential criminal offences are identified, the matter may also be referred to the Attorney-General, who would assess the evidence and determine whether to initiate criminal proceedings.
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