An Audit Office report has revealed that the Cypriot government spent approximately €40 million for the accommodation of Ukrainian refugees.
This spending covered primarily housing costs for the period up until March 4, 2024, and also included a small amount (approximately €8,000) for transportation and translation services.
The audit was initiated following a parliamentary inquiry into the procedures used for handling the refugee situation. While the Deputy Ministry of Tourism was the lead agency in securing accommodation, other ministries and agencies may have provided additional aid such as medical assistance and benefits, which were not part of this specific audit’s scope.
In light of Cyprus’s strategic geopolitical position and the ongoing instability in the Eastern Mediterranean, the Audit Office recommends the government develop an emergency contingency plan to better manage potential future influxes of displaced people.
The Audit Office also highlighted concerns over the initial use of a “negotiation without publication” procedure for selecting refugee accommodations. This non-competitive process is permissible for urgent needs, but the Office stresses it should not be relied upon for an extended duration.
While the audit found no indications of violations of transparency, equal treatment, or competition principles, it recommends that standard tendering procedures (including expedited options) should be used whenever possible.
Cyprus has received €6.7 million in support from the European Commission to help offset the costs of the refugee aid programme.
The government has also transferred management of specific accommodation contracts to the Municipality of Paralimni as of January 1, 2023.
For transparency purposes, the Audit Office provides a table listing the total expenditure of the Deputy Ministry of Tourism, per hotel, from March 22, 2022, to March 4, 2024.
For accommodation in 27 different hotels in Famagusta, a total of €36,154,371.99 was spent.
For hotels in Paphos, the amount spent was €2,313,808.46, and for a hotel in the Nicosia district, it was €1,212,651.10.
The total amount spent on accommodation in hotels is €39,680,831.65.
