The Audit Office published a special report on the Ministry of Transport and the Road Transport Department, uncovering deep-rooted problems in public bus contracts for 2022–2023 and revenue collection in 2023.
Contractors claim over €59 million
Five bus companies have filed lawsuits demanding more than €59 million for the period 2010–2020 due to disputes over state subsidy calculations. Years after contracts ended, the Road Transport Department still cannot estimate potential liabilities, leaving a major fiscal risk hanging.
Contracts include clear performance-monitoring tools and financial penalties, yet authorities never activated them. The Audit Office found no systematic tracking of quality targets, so operators face no sanctions for poor service, risking substantial state revenue loss.
Many contractors submitted quarterly reports and financial statements late or not at all. Authorities often failed to impose penalties or applied them months late, creating perceptions of unequal treatment and undermining oversight credibility.
Overpayments from calculation errors
The Audit Office discovered mistakes in inflation indices that caused overpayments of €67,951 in 2022 and €35,175 in 2023. Although relatively small against total contract values, the errors expose the department’s inability to calculate compensation accurately and reconcile differences promptly.
One employee calculated amounts, checked calculations, and recommended payments, breaching basic internal control principles and dramatically raising the risk of undetected errors or fraud.
Staff perform all subsidy calculations in ordinary Excel files with no locked formulas or change-tracking. A single altered cell could trigger million-euro over- or under-payments.
Tillyria contract has no penalty clause
The Tillyria routes contract contains no provision to penalise late submission of data. The operator never submitted financial statements for 2022–2023, and authorities possess no mechanism to force compliance.
Citizens overcharged on road tax fines
The TOMIS system wrongly calculates late-renewal penalties on the full annual fee even when drivers renew licences for three or six months only, resulting in illegal overcharges.
Despite monthly reconciliation attempts, the FIMAS and TOMIS systems continue to show differences that remain unresolved, casting doubt on the accuracy and completeness of state revenue.
The Audit Office concludes that weaknesses are structural, stemming from non-application of contractual tools, lax supervision, missing technological safeguards, staff shortages, and inadequate risk management.
Two more reports will follow in 2026: one on road safety and one on passenger experience in public transport.
Also read: Zygi–Vasiliko LPG project: Cyprus Audit Office finds delays, irregularities and soaring cost
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