When deputies attempted to end through legislation the secrecy surrounding the donations made to the charity vehicle run by the president’s wife, Philippa Karsera-Christodoulides, the president refused to sign off the bill, claiming it was unconstitutional. Deputies were accused of seeking to score some cheap political points against the government and that the way the Independent Agency of Social Support operated was impeccable.
There was no need for transparency, because we all had to accept the assumption that businesses and wealthy individuals donate large amounts of money to the government without ever wanting anything in exchange. Donations are made because businesspeople in Cyprus are not just altruistic, but they also believe in the worthiness of the presidential charity’s objective – financial support for university students, despite the existence of state grants to help needy students.
While politicians’ concerns about how the agency operated could be easily dismissed by the presidential palace as crude politicking, it could not do the same in the case of the report issued by the Audit Office on Tuesday. Nor could it blame the report on the hostility of the auditor-general, because Odysseas Michaelides is long gone from the service.
The report pointed out that companies which made big donations to the Agency of Social Support also had financial dealings with the state. Although it said it had not found any evidence of transactional dealings, the Audit Office noted that conditions which “could lead to public questioning” could arise. And it pointed out the obvious that everyone can see except the president and his wife – “the husband of the president of the agency is at the same time the President of the Republic, who takes decisions that directly or indirectly affect companies’ donors”.
The Audit Office also gave examples. Some shipping companies made big donations in the first two years of the Christodoulides presidency. In 2024 when six shipping companies contributed one third of the agency’s revenue (€750,000) the cabinet coincidentally issued a decree reducing the tonnage tax by 30 per cent for certain types of ship. It also mentioned the case of a company that was negotiating a long-term contract with the state, contributing €695,000 in 2023 and 2024.
The responses to these very legitimate concerns were legalistic, completely avoiding the issue of transparency. The administrative committee of the agency said: “The mission of the agency is clearly institutional. The Administrative Committee expresses strong concern regarding the attempt the transforming of technocratic supervision into a tool a political exploitation…”
If everything is above board and there is nothing to hide, why is Karsera-Christodoulides so vehemently opposed to making public the names of the donors? The Audit Office proposed the disclosure of entities or individuals that donated more than €20,000. The bill prepared by deputies sought disclosure for donations above €5,000. We do not know from which amount disclosure should be compulsory, but the issue is not the amount but transparency. Without transparency suspicions of corrupt dealing will always loom over the agency.
