Suspended Paphos mayor Phedonas Phedonos is under criminal investigation over claims he raided €1.5 million from municipal workers’ pension fund and presided over a string of illegal appointments and contracts.
Police have been investigating Phedonos and a senior municipal official since April 2022. The lead investigator’s report landed on the Attorney General’s desk in January with recommendations on whether to prosecute.
The probe centres on four main allegations: the €1.5 million taken from the pension fund to buy land for student accommodation, five staff hired without proper procedures for jobs paying up to A13 grade, illegal subletting of Turkish Cypriot property for a café despite explicit legal advice against it, and misuse of an official vehicle with two municipal workers paid overtime from public funds to act as the mayor’s drivers.
Police and the Audit Service have gathered documents and witness statements. Auditors carried out an on-site inspection at Paphos municipality in May 2023 and found evidence backing several of the allegations.
The mayor’s drivers
Investigators found Phedonos used two municipal messengers as personal drivers and paid them overtime from public money, according to documents obtained by Phileleftheros.
One official report states: “Contrary to regulations, no Vehicle Journey Log is kept for the official vehicle used by the Mayor, nor monthly cost sheets.”
The same document notes the two employees “also act as drivers for specific official trips by the Mayor, for example outside Paphos district, and if they work beyond normal hours, they are paid overtime”.
Jobs offered before approval
At least five people got municipal jobs without transparent hiring processes, the complaint alleges. Two positions were for “smart city” projects with substantial salaries.
For the two senior appointments, investigators found the municipality “offered employment to individuals” before getting required approval from the Interior and Finance Ministries.
Pension fund raid
The most serious allegation involves €1.5 million taken from municipal workers’ pension fund to buy land for student accomodation.
Trade union organisations wrote to the Labour Ministry on 31 January 2022 flagging the issue and claiming it broke the law.
Café on Turkish Cypriot land
Police also investigated claims the municipality illegally sublet Turkish Cypriot property in Mouttallos to a private individual for a café-restaurant. The business had no planning permits or other required licences.
Documents show the Law Office had explicitly told the municipality it could not sublet Turkish Cypriot property.
When the municipality asked again in November 2022 for permission to sublet such properties, the Law Office response was blunt: “Our positions on this matter have been expressed many times in the past. Based on current legislation, our position is that the Turkish Cypriot Properties (Administration and Other Matters) (Provisional Provisions) Law of 1991 contains no provision granting the right to sublet Turkish Cypriot properties, nor does it permit profiting from them, since the basic purpose of the law is to protect these properties and meet the needs of refugees.”
How the case unfolded
The complaint was filed with Paphos CID in April 2022. Within months, the file went to the Law Office for guidance.
A year later, in spring 2023, Paphos CID asked the Audit Service to investigate. Auditors examined the allegations and found illegalities in the vehicle use, hiring procedures, and property subletting.
The Audit Service sent its findings to Paphos CID in autumn 2023, as the former Auditor General confirmed following Phileleftheros’ report this week.
In 2024, the case was handed to the Crime Combating Department at Police Headquarters. By summer 2025, investigators had gathered documents and evidence from various public services.
The complete file reached the Attorney General on 9 January 2026.
Whistleblower fired
The person who reported the alleged wrongdoing lost their job shortly afterwards.
The municipal employee filed the complaint with Paphos police in spring 2022. On 17 May 2022, they were dismissed.
The municipality’s legal adviser sent police a letter claiming the whistleblower acted out of revenge after being assessed as inadequate at their job.
“It is obvious why they proceeded with this entirely unfounded, false and unsubstantiated complaint,” the letter stated.
Also read: Court rejects Paphos mayor Phedonos suspension appeal
For more videos and updates, check out our YouTube channel
