A new audit by the Cyprus Audit Office has identified serious weaknesses in the Municipality of Limassol’s human resources management, citing systematic departures from the legal and regulatory framework, irregular pay arrangements, recruitment concerns, extensive overtime management breaches and employee benefits granted without sufficient documentation.
The report, titled Compliance Audit on Personnel Matters in the Municipality of Limassol, covers the period from 1 January 2022 to 30 June 2024, as well as subsequent decisions taken by the newly established municipality following Cyprus’ local government reform.
Overtime costs surge by 176%
One of the report’s most significant findings is the sharp increase in overtime expenditure, which rose from approximately €500,000 in 2017 to €1.4 million in 2024, despite repeated assurances by the municipality since 2011 that measures had been introduced to reduce overtime costs.
According to the audit, the Audit Office identified:
- overtime payments made without the required approvals;
- compensation that could not be verified through the electronic attendance system;
- cash payments made instead of time off in lieu, contrary to applicable regulations; and
- overtime payments to a senior official without the approval of the Municipal Council.
Promotions despite legal advice
The report also states that the Municipal Council renamed four traffic wardens as Assistant Clerical Officers and granted them personal salary upgrades, despite a legal opinion concluding that these actions were not lawful.
The council later partially revoked its decisions but did not explain the reasons behind the change in position.
Missing service schemes raise concerns
The Audit Office found that the municipality was unable to provide published Service Schemes for all positions. While the report does not conclude that appointments or promotions were unlawful, it says the absence of the required documentation raises questions about whether proper procedures were followed.
Service contracts became permanent employment
According to the report, the municipality strengthened its workforce through service contracts that remained in place for more than 30 months.
As a result, six individuals were recognised in 2024 as employees on permanent contracts following successful applications to the Social Insurance Services.
Questions over allowances and benefits
The audit also found that collective agreements granted employees additional financial benefits beyond those provided under public service regulations.
One example cited is an allowance equal to 82.93% of an employee’s basic salary, paid before Easter, at a total cost of around €1.9 million between 2022 and 2024. The Audit Office said there was insufficient evidence to support claims that these benefits were based on government decisions.
Meanwhile, expenditure on various allowances increased by 44%, with the report stating that both their calculation and necessity were inadequately documented.
‘Long-standing departure from legality’
In the report’s foreword, Auditor General Andreas Papaconstantinou says the findings reflect not isolated mistakes but a long-standing departure from the applicable legal and regulatory framework.
He warns that these practices expose the municipality to administrative, financial and legal risks, while urging the current municipal administration to adopt a transparent and long-term strategy for managing its workforce.
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