Serious weaknesses in the administration of Cyprus' Minimum Guaranteed Income (MGI) scheme have been identified in a special report by the Audit Office, which highlights cases where benefits were paid for years without final approval, incomplete checks and delays in recovering public funds.
The report found that many applications continued receiving payments under temporary approval arrangements well beyond the deadlines set for submitting supporting documentation.
Hundreds of cases remained under preliminary approval
Of the 252 applications under preliminary approval in October 2022, 242 were receiving benefits without a final decision.
In 150 cases, the preliminary approval status had continued for more than two years, despite the usual deadline for submitting supporting documents being three months.
The Audit Office examined 11 cases in detail, finding that payments continued for between 57 and 129 months, with total amounts ranging from €21,887 to €131,973 per application.
According to the report, required deadlines were not observed and the necessary reminders were not issued.
Recovery procedures launched in some cases
One case involved a man who received €102,528 between 2017 and 2024. A subsequent review found inaccurate information relating to his income and family circumstances, leading to the termination of the application and the launch of procedures to recover the full amount.
In another case, a woman received €80,607 over 83 months, despite being registered with the Public Employment Service for only 33 months. Her application was terminated after she was deemed voluntarily unemployed.
Despite corrective measures, 149 preliminary approvals remained pending in January 2026, including 28 cases already listed in the 2022 review.
Deposits reached €680,000 in some cases
The report also examined the financial circumstances of beneficiaries.
It found that 737 applications had been approved under exemptions to the standard deposit threshold, which is set at €5,000 for an applicant, with additional allowances based on family size.
Of those applications, 19 involved deposits exceeding €100,000.
In the 11 cases reviewed in detail, bank deposits ranged from approximately €160,000 to €680,000, while benefit payments reached up to €120,000 per recipient.
The report notes that most involved persons with disabilities, for whom legal exemptions are provided. However, in four cases auditors initially could not locate documentation justifying the origin and purpose of the deposits.
Property holdings also examined
In nine cases, beneficiaries held property valued between €132,450 and €811,400, while benefit payments reached €159,660.
The Audit Office identified weaknesses in the procedures used to assess whether properties could be utilised or generate income. It noted that some cases involved bankrupt individuals who were unable to make use of their assets.
Additional control weaknesses identified
The report further found cases where benefits were paid despite pending eligibility assessments.
In one instance, MGI payments had been made since 2015 to a person claiming disability status even though the relevant assessment remained unresolved as of January 2026.
Another beneficiary who received €24,433 showed indications of not continuously residing in Cyprus, but auditors found insufficient evidence of investigation.
The report also identified:
- €6,160 paid in error to a bank for mortgage interest support after the subsidy had expired.
- €35,125 marked for recovery from banks, without evidence of the necessary recovery actions being taken.
- Difficulties in identifying bank accounts through electronic systems, including accounts into which MGI payments had been deposited.
- Incomplete case files and documents filed under unrelated applications.
- Weaknesses in the investigation of complaints.
Staffing issues highlighted
The Audit Office also reported that three of the four members of a team established to carry out checks had resigned and were not replaced.
The findings highlight ongoing concerns over controls, oversight and the processing of welfare benefits within the MGI system.
