The Audit Office has identified a series of irregularities and problematic decisions at Limassol Municipality, according to a 16-page letter sent to the local authority with observations, recommendations and proposals. The letter, structured in 12 points, was discussed at the latest municipal council meeting, which set, by majority, the line for a detailed response to be approved at the next session.
The municipality has until 8 December to reply. A special audit report is expected to follow. The review period covers 1 January 2021 to 30 June 2024, with certain 2025 council decisions also examined. The core question: whether the municipality substantially complies with the legal framework governing staff employment, particularly the payment of overtime and other allowances.
Irregular pay scales
The Audit Office cites extensive use of so-called “personal scales” awarded by the council to specific employees. Examples include:
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Head of Cultural Services: upgraded from A12 to A13
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Safety Officer: A8(iii) to A10
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Gardens Officer: A11(ii) to A13
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Three office assistants: A7 entry grade to A9 (after recruitment at A7)
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Two traffic wardens: A2-5-7 to A9
According to council minutes referenced in the letter, “personal scales” were granted to 16 staff; 14 of them serve in posts without approved service schemes, and 12 hold positions that normally fall under hourly-paid categories. In the same decision, nine employees originally hired as traffic wardens or kindergarten teachers were reassigned or retitled as assistant secretarial officers.
The Audit Office notes the municipality had obtained a legal opinion interpreted as opposing such moves, yet the council, by majority, approved further upgrades: three traffic wardens to A8+4, the Safety Officer to A9+3, the Head of Cultural Services and the Gardens Officer to A12+4, and a senior sanitary inspector to A10. The Audit Office recommends the council revoke the decision.
Traffic wardens in other posts
Auditors also found five traffic wardens assigned to duties unrelated to their posts, by instruction of the former mayor and/or council decisions. These constitute “secondments” which, under regulations, should not exceed two years. In practice, the wardens appear to have been moved on a de facto permanent basis and now perform duties in other services such as the technical department and secretariat.
The letter records that municipal staff receive a 14th salary equal to 83% of monthly pay. This stems from an older collective agreement reached locally with unions, not via the Union of Cyprus Municipalities on a national basis. The Audit Office says such a benefit does not align with prevailing public-sector practice.
Overtime and allowances surge
Overtime expenditure has soared by 176% since 2017: from €492,563 in 2017 to €1,359,681 in 2024, an increase of €867,118. Auditors refer to “advance approvals of overtime” that the municipality could not substantiate, and to overtime paid to staff and labourers without verified time-in/time-out records. One case noted an overtime form approved by the same person who requested it.
Allowances also rose sharply: up 44% from €112,641 in 2021 to €162,038 in 2023, with payments, the letter says, not aligned with the applicable legal framework.
Separately, the attendance control system is deemed inadequate; senior officials reportedly do not use it. A notable example is a senior Technical Services officer who received €100,000 in overtime while not using the system.
Council’s position
At the latest council session, the letter was tabled and the majority defended prior decisions as necessary amid a recruitment freeze during the period in question, which they argue created operational pressures requiring immediate solutions. Mayor Yiannis Armenytis disagreed, reminding members that he alone voted against the 2025 decisions granting personal scales.
Municipal services have been instructed to prepare the formal reply and address all additional issues raised by the Audit Office.