Calls are mounting for the abolition of the First Lady’s Fund, which provides scholarships to students based on social and other criteria. The controversy triggered by the video circulating online has prompted political parties, organisations and other stakeholders to demand further explanations and greater transparency regarding donations made to the fund.
Critics argue that the fund has become a front for serious entanglement between donations and power. The lack of transparency surrounding a charitable fund that is institutionally linked to the Presidential Palace has raised concerns over public trust and potential conflicts of interest.
Audit findings and state transactions
An audit report published in early November and highlighted in reporting by Politis revealed cases in which companies made substantial donations to the fund while simultaneously maintaining financial dealings with the state.
According to information obtained by Politis, these findings were not brought before the House Audit Committee, as is customary. Instead, discussion of the issue reportedly stalled at the level of a meeting between party leaders or parliamentary representatives.
Warnings issued by the Audit Office about the risks of public distrust, particularly in relation to the fund operating under its own internal rules, are now materialising in a pronounced way. Critics say the fund no longer serves the purpose for which it was originally established.
During the post-bail-in period, when unemployment was high, the fund was used to support students whose parents had lost their jobs and could no longer afford to finance their studies. That social mission, opponents argue, has now been diluted.
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Major projects under scrutiny
While the Director of the President’s Press Office Viktoras Papadopoulos told Politis that there is no lack of transparency or any hidden transactions, the Audit Office of the Republic of Cyprus is reportedly examining the legality of major projects that may be linked to significant donations to the First Lady’s Fund, as well as to institutional facilitation granted for their completion.
Scholarships imbalance
A growing perception is that, by 2026 and with unemployment at historically low levels, the First Lady’s Fund is being instrumentalised for pre-election purposes ahead of the 2028 presidential elections.
Beyond AKEL’s call for the fund’s abolition as part of broader institutional reforms, complaints have been raised to Politis regarding the state of the Cyprus State Scholarships Foundation. The foundation has reportedly been left with minimal funding, as donations are instead channelled to the First Lady’s Fund, which then manages scholarship distribution.
As a result, hundreds of students were left without scholarships this year, despite being eligible. Previous requests for a supplementary budget for the foundation reportedly went unanswered.
Other associations have also voiced complaints, noting that their state funding has been reduced while the First Lady’s Fund continues to receive generous contributions.
Student reaction
Strong reactions have also come from the student organisation Protoporia. In a statement, the group said the matter constitutes a serious institutional issue if the questions raised by the video are not answered adequately and with documented explanations.
The organisation referred to “shadows” over the channelling of donations and their alleged connection to the highest level of political authority. Particularly troubling, it said, is the claim that part of these donations may be linked to social policy actions and student support.
Protoporia is demanding full disclosure of all amounts donated, the identity of donors and the procedures governing the operation of the fund, stressing that transparency must be comprehensive and not selective.