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Illegal Turkish Cypriot property leases highlighted by audit office

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The Auditor General calls on the government to reclaim Turkish Cypriot properties that are being unlawfully occupied by some individuals, rather than legitimizing the illegal leases.

Commenting on statements made by the Minister of Interior, the Audit Office urges the government to demonstrate the necessary willingness to rectify these irregularities.

It is noted that the Auditor General, in a letter to the President and members of the Refugee Committee in 2023, had documented the following:

  • The original tenants of the 17 properties sublet or sold the properties to third parties, in some cases non-entitled individuals, contrary to the provisions of the law, thereby collecting significantly higher amounts in rent than owed to the Larnaca Municipality.
  • Loans taken for the construction of restaurants from the Public Loans Fund, with a remaining balance of €799,138 as of 31/12/2014, were not repaid by the majority of the borrowers.
  • The lease contract signed by the Guardian in 2015 with the Larnaca Municipality had weaknesses and omissions as it allowed subletting to non-entitled parties while not providing for the repayment of loans.
  • Two of the three restaurant owners in Piale Pasha, to whom three vacant plots in Mackenzie were allocated, instead of developing the properties, sold the right of use of the land.
  • Not all incomes of entertainment centers appear to be declared to the Tax Department.
  • The debts of the Larnaca Municipality to the Management Fund amount to €469,483.
  • The debts of sub-tenants to the Larnaca Municipality as of 30/6/2016 amounted to €329,479.
  • The building coefficients and coverage, as well as the height of certain establishments, do not comply with the Larnaca Local Plan.

The announcement includes the following:

Regarding recent statements by the Minister of Interior regarding the ministry’s intention to directly assign Turkish Cypriot properties in the Mackenzie area to individuals who illegally occupy them, thereby legitimizing illegal subletting and occupation, our Office releases a relevant letter that we had submitted on 25/8/2023 to the Parliamentary Committee on Refugees – Enclaved – Missing Persons – Victims.

We once again urge the Government to demonstrate the necessary willingness to combat irregularities and not reward illegal actions, in a manner that is not even compatible with existing legislation.

The Guardian must proceed to reclaim the Turkish Cypriot properties for which there is no valid lease agreement, and these properties should be allocated following open and transparent procedures.

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