The government is attempting to quietly manage the findings of the Ministry of Education, Sport and Youth regarding the handling of assets belonging to the Cyprus Sports Organisation (CSO), a matter that is currently under police investigation. As regards the functioning of the CSO and the taking of decisions in the absence of a Director General, the issue has ultimately been played down, following what the CSO President describes as oral legal advice from the Attorney General that everything was (and remains) lawful, on the grounds that the organisation was operating under the “doctrine of necessity”.
Four months ago, the Minister of Education, Sport and Youth, Athena Michaelidou, was preparing to submit a proposal to the Council of Ministers for the dismissal of the CSO Board of Directors and the appointment of a new one. That process was subsequently frozen, a way was found to “legalise” decisions that had been taken, and the police investigations continue.
Ministerial proposal
The current CSO Board of Directors was appointed by the Council of Ministers on 30 January 2024 for a period of 30 months (until 29 July 2026). The Council of Ministers retains the authority to terminate the appointment of any board member at any time if deemed necessary.
As stated in the Minister’s proposal to the Council of Ministers, due to serious problems arising from the Board’s ineffective regulation of its operations - particularly with regard to ensuring legality, rational administration, compliance with the principles of sound financial management and good governance, accountability to competent authorities, adherence to transparency principles, and substantive responses to a number of ministry letters concerning outstanding issues - the Minister recommended the dismissal of all Board members and the appointment of new members drawn from the public sector.
Grounds for dismissal
Specifically, the actions and omissions of the current CSO Board deemed to justify dismissal include:
(a) Payments made in the absence of a supervising officer, thereby failing to ensure legality, rational administration and sound financial management. The Ministry referred the matter to the Attorney General to examine potential criminal or other offences. A criminal investigation by the Cyprus Police is currently under way, with the Ministry having submitted relevant evidence.
(b) The appointment of an Acting Director General (23 April 2025) who did not meet the qualifications required by the post’s service scheme. Following legal review, the Legal Service ruled that the selected candidate did not meet the required salary scale criteria and therefore did not fulfil the appointment conditions. The CSO failed to respond to repeated ministry correspondence on the matter.
(c) Deficient exercise of CSO powers in relation to property leases, including expired or cancelled leases without recovery or re-letting of properties, failure to construct agreed facilities, unauthorised constructions, misuse of leased premises and outstanding debts without collection measures. A police investigation is ongoing.
(d) Failure to take corrective measures following non-implementation of legislation requiring reductions in remuneration for employees of sports federations, resulting in loss of public funds. The CSO argued it bore no responsibility - a position the Minister states contradicts both legislation and Ministry of Finance circulars.
(e) Failure to fulfil obligations to the Commissioner for State Aid Control regarding the Limassol stadium and its usage agreements with Apollon, AEL and Aris. Non-collection of agreed rents may constitute unlawful state aid and jeopardise approval by the European Commission’s Directorate-General for Competition.
(f) Approval of increased grants to refugee clubs without approved budgetary appropriations, rendering the decisions unlawful and beyond the Board’s authority.
(g) Conclusion of a collective agreement through an irregular procedure, containing problematic provisions and additional costs, in breach of the framework agreement applicable to public law bodies.
(h) Persistent failure to substantively respond to ministry correspondence regarding outstanding organisational matters.
Questioning competence
According to Minister Michaelidou, the above actions and omissions “call into question the ability of the CSO Board members to fulfil their duties and demonstrate the need for action in view of the apparent commission of serious offences, including loss of state resources, misappropriation of public funds and abuse of power”.
She therefore proposed to the Council of Ministers the dismissal of the current Board and the appointment of a new Board composed of senior civil servants, including representatives of the Ministry of Finance, Ministry of Education, Ministry of Interior, Ministry of Transport, the Deputy Ministry of Tourism, the Deputy Ministry of Culture, the Ministry of Health, the Legal Service and the Accountant General’s Office.
'Unlawful collective agreement'
In an internal briefing note dated 23 September 2025, entitled “Dismissal of the Board of Directors of the Cyprus Sports Organisation and appointment of a new Board”, the then Permanent Secretary of the Ministry, Giorgos Pantelis, updated the Minister on developments following the submission of the proposal and her subsequent instructions.
The memorandum records continued non-committal responses from the CSO, a lack of substantive information, and further confirmation from the Police that criminal investigations remained ongoing, including referrals to the Attorney General.
It also highlights the unlawful collective agreement signed by the CSO, in violation of Cabinet decisions governing semi-governmental organisations.
The aftermath
Despite the submission of a revised proposal seeking Cabinet approval, the matter never reached the Council of Ministers. Instead, the consequences were borne by Giorgos Pantelis himself, who was transferred on 1 December 2025 to the Ministry of Justice and Public Order by Cabinet decision.
Pantelis had served the Ministry of Finance for 31 years, including five years as Permanent Secretary (2019–2024), and played a leading role in implementing Cyprus’s economic adjustment programme during the 2013–2016 period. His earlier transfer from the Ministry of Finance to the Ministry of Education had already been perceived by insiders as punitive, due to his reputation as a strong, independent figure resistant to fiscally lax practices.
This article was originally published in the Politis Sunday Edition.