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- Auditor General Andreas Papaconstantinou warned the exception mechanism risks becoming an alternative route for planning approval, saying “the exception risks becoming the rule.”
- In one case, a supermarket operated illegally after rejected applications and enforcement notices; SYMEPA still recommended a four-year permit, though the permit was not issued by audit end.
- The report cites a house built on high-quality agricultural land and 20 homes outside a residential zone, where approvals were granted despite concerns over planning violations.
- Auditors found unexplained recommendation changes, average examination times of 25 to 31 months, unclear compensation amounts, and possible risks to SYMEPA’s independence.
Planning permits granted by exception have come under scrutiny after the Audit Office identified serious weaknesses in the approval process, including the retrospective authorisation of unauthorised developments and delays exceeding a decade.
In a special report published on October 21, 2026, the Audit Office examined the operation of the Council for the Study of Derogations (SYMEPA), raising concerns about how developments that depart from approved planning schemes receive permission.
Auditor General Andreas Papaconstantinou warned that a mechanism designed for exceptional cases risks becoming an alternative route for securing planning approval.
“The exception risks becoming the rule,” he cautioned.
The report, numbered EE-EY 30/2026, examined records and a targeted sample of 17 applications from 2020 to 2023. The Audit Office clarified that it did not assess the technical planning merits of the decisions themselves.
Supermarket operated illegally despite previous rejections
One of the cases concerned premises in an industrial zone that had been licensed as warehouses but were operating unlawfully as a supermarket.
Applications to change the use of the premises were rejected in 2012 and 2014, and two enforcement notices were issued.
The Planning Authority again recommended rejecting the application, warning that approval could reward unauthorised development.
SYMEPA itself acknowledged that the development significantly affected the strategy of the applicable development plan, encouraged uncontrolled development and undermined fundamental planning regulations.
Despite these findings, the council recommended granting a temporary planning permit valid for four years. The Council of Ministers adopted the recommendation.
However, the Audit Office found that, by the end of its audit, the supermarket appeared to still be operating without the temporary planning permit having been issued. The applicant had not completed the required steps.
House built on high-quality agricultural land
Another case involved a house built without authorisation on high-quality agricultural land in the Famagusta district, within the Kokkinochoria Irrigation Project.
The Planning Authority noted that previous applications had been rejected, the house had already been built unlawfully and the development conflicted with the objective of protecting productive agricultural land.
It also warned that approval could set a harmful precedent.
Nevertheless, SYMEPA unanimously recommended approval, which the Council of Ministers subsequently granted.
The Audit Office found insufficient evidence that key claims used to justify the favourable recommendation had been properly examined.
Twenty homes built without permits
The report also refers to a case involving 20 homes built outside a residential zone in the Limassol district without the required permits.
SYMEPA recommended approving the applications subject to compensatory measures. The Council of Ministers approved the granting of planning permission on February 8, 2023.
The Audit Office referred the case to the Independent Authority Against Corruption on June 27, 2024.
It clarified that the case was included for completeness and was not part of the specific audit under review.
Recommendations changed without clear explanations
The Audit Office raised concerns about cases in which the Council of Ministers returned applications to SYMEPA for reconsideration.
In five cases where the council changed its original position after a referral, auditors found no documented reasons or new material evidence in the files to explain the change.
In three cases, an initially negative recommendation became positive. In the other two, the council reversed a positive recommendation.
The report also found that, between 2020 and 2023, SYMEPA departed from the Planning Authorities’ recommendations in 90 out of 627 cases, representing 14.35%.
The rate reached 21.4% in 2023.
In six cases within the audited sample, Planning Authorities had concluded that the proposed developments would significantly affect the overall strategy of the applicable development plans, which constitutes grounds for refusing a derogation. SYMEPA nevertheless recommended approval.
One application took 11 years to assess
Delays in examining applications were another major concern.
Between 2020 and 2023, the average examination time ranged from 25 to 31 months. Some cases were completed in less than three months, while others took more than a decade.
One case involved a higher education institution that submitted an application in 2010. The development included unauthorised alterations and interventions, as well as breaches of planning parameters.
The relevant Planning Authority took 11 years to submit its report to SYMEPA. Auditors found no adequate justification for the delay.
The Council of Ministers approved the application in 2021, but the planning permit was not issued until December 2023.
Compensation ranged from €5,000 to €70,000
The Audit Office also identified weaknesses in how compensatory payments attached to approvals were determined.
In two cases involving individual houses, SYMEPA recommended payments of €5,000 to the relevant Local Authority. In five other cases, no equivalent financial measure was proposed.
A further development also attracted a proposed payment of €5,000, while a change of use involving a hotel carried a proposed payment of €70,000.
The Audit Office said it could not establish how the amounts had been calculated.
The findings raise questions about whether a clear and consistent methodology is used to determine financial compensation when developments receive permission by exception.
Audit Office flags concerns over SYMEPA independence
The report also highlighted potential institutional risks to SYMEPA’s independence.
The Council of Ministers appoints the council’s president and members and can refer cases back to it for reconsideration. The possibility of renewing members’ terms was also identified as a factor that could create a risk, or the perception of a risk, to the body’s independence.
The Audit Office stressed that its observation concerned the institutional framework, not specific individuals or actions.
Among its recommendations, it suggested examining the possibility of longer terms for members without the right to reappointment.
Auditor General warns against rewarding illegal development
The report’s central concern is that retrospectively legalising unauthorised developments could undermine confidence in Cyprus’s planning system.
The Auditor General warned that lengthy delays allow illegal buildings and uses to remain in operation for years, creating established situations that become increasingly difficult to reverse.
The state risks becoming trapped in a prolonged process of managing violations, until legalisation appears easier than restoring compliance with planning rules.
The Audit Office called for a substantive review of the derogation framework, clearer criteria, better documentation of decisions, a transparent method for calculating compensatory measures and more effective monitoring of applications.
The findings were based on SYMEPA register data and a targeted audit of 17 applications submitted between 2020 and 2023. The report did not assess the technical planning merits of the decisions.
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