Cyprus faces multiple European Union court cases and potential financial penalties following an audit that revealed widespread environmental violations and administrative failures at the Ministry of Agriculture, Rural Development and Environment.
The Audit Office report published today exposed serious breaches of environmental and planning legislation, with delays and inaction on critical issues that have already prompted EU legal action against the Republic of Cyprus.
EU court referrals and penalties
The European Court of Justice is hearing two major environmental violation cases against Cyprus.
Under the Habitats Directive (92/43/EEC), Cyprus faces action for delays in adopting specific conservation targets and management measures, despite guidance provided since 2021 and commitments to produce 27 decrees by end-2025.
A more serious case involves the EU’s renewed demand for financial penalties over the continued failure to remediate Vati and Kotsiatis landfills, 12 years after the initial 2013 conviction.
The EU referred Cyprus to court in May 2025 over delays in restoring the landfill sites, with restoration efforts experiencing significant delays that increase the risk of economic sanctions.
Unauthorised developments in protected areas
The audit identified several cases of unauthorised construction in environmentally sensitive locations.
At Kouklia on the Akamas Peninsula, planning status was changed on state forest land to benefit a specific company without completing a planned land exchange.
Despite the cancellation of the programmed land swap, private plots at Kouklia continue to enjoy favourable planning status. The case remains under police investigation following a special Audit Office report that identified serious irregularities.
Illegal establishments, including restaurants and refreshment facilities, continue operating in protected areas of the Akamas Peninsula despite demolition announcements. The Audit Office identified the premises during site visits, requesting immediate action from local authorities.
In February 2025, Paphos District Court examined a January 2025 decision regarding another illegal construction in Ineia Community within the Akamas Peninsula, ordering demolition of the building and fencing within two months unless proper authorisation is obtained.
Violations involving politically exposed persons
The report documents cases of preferential treatment for companies and politically exposed persons (PEPs).
At Agia Thekla in Famagusta, unauthorised construction occurred at a tourist development owned by a PEP. The Administrative Court cancelled permit rejections, criticising inadequate environmental assessment and justification.
Additional floors were added to the tourist development without permits, and holiday homes were erected before legally required approvals.
River interventions and unauthorised constructions
Multiple violations were recorded involving illegal interventions in rivers and unauthorised developments.
A private residence was constructed within or near the Kryos Riverbed in Pano Platres Community without valid building permits. Work continues despite permit expiry, with a work suspension order issued and surveying studies awaited to document potential riverbed interference.
Extensive interventions were discovered in the Amathos River bed between Dierona and Prastio Kellakiou, where artificial lakes and kiosks were created with access requiring expensive ticket purchases.
The Water Development Department confirmed illegal works and sent warning letters, whilst the Lands Department completed surveying studies to document the unauthorised interventions.
At the Timi B livestock area, a tenant illegally erected buildings in 1996 on livestock land managed by the Agriculture Department.
Paphos Planning Authority granted planning permits for additions and change of use without required consent from the Department as landowner.
Despite the lease expiring on 31 October 2023, the tenant continues illegal occupation.
Illegal operations in Natura 2000 areas
A large livestock unit has continued illegal operation within a protected Natura 2000 area since 2015. Despite court demolition orders and Auditor interventions, the facilities remain, with the case referred to the Independent Authority Against Corruption.
The Agriculture Directorate General stated that veterinary services and the farm owner are attempting animal marking, and efforts are underway to relocate the operation to an area where proper licensing is possible.
Environmental centre built without impact study
The Lakatamia Environmental Information Centre project began without conducting an Environmental Impact Assessment despite Environment Department guidance. Authorities believe the underground aquifer system was not affected.
The 11.8-kilometre project within the Pedieos Linear Park started without the required Environmental Impact Assessment despite clear Environment Department guidance from July 2021.
Recycling facility fires
Repeated fires at recycling facilities in Geri-Idalion, including a hazardous waste processing unit, raised public health concerns. Following a December 2024 fire at the hazardous waste facility, the Environment Department reissued licences with enhanced fire protection measures and imposed site access bans until full impact management.
Financial and administrative irregularities
The audit identified extensive weaknesses and accounting omissions in Water Development Department transactions, including water billing errors with meter readings recorded as zero, inadequate payment documentation for over €2 million, questionable payments to desalination units with invoice manipulation, and unexplained deposit balances including a €207,492 VAT account deficit.
Irregularities were also found in the canteen operation at the Agricultural Research Institute, with successive contract renewals without tender and gradual rent reductions.
Park construction in protected area
Park redevelopment occurred within a Natura 2000 network area at Larnaca Salt Lake without specific ecological assessment. Although the Hunting Service and Environment Department set conditions, construction was temporarily suspended while measures were taken to limit disturbance to small groups.
Audit conclusions
Auditor General Andreas Papaconstantinou delivered a harsh assessment: “Unjustifiable delays are identified in the Republic of Cyprus’s compliance with European directives on environmental issues. Significant state reluctance is also observed to adopt drastic and immediate remedial measures where violations and illegalities are identified.”
The Audit Office called on the Agriculture Ministry and involved services to take substantial responsibility and immediately correct chronic dysfunctions that endanger the environment, public health and good governance.
