Parliament moves to abolish social support agency amid donor scrutiny

A bill to abolish the social support agency was submitted to the plenum on Thursday, bringing the future of the fund directly before parliament.

Speaking to the Cyprus Mail on Friday, independent MP Alexandra Attalides said the move was driven out apparent intransience from the executive.

“The president himself said he was considering abolishing it,” she said, adding that “when we approached the accountant-general on this matter, no such request had been made, so we proceeded accordingly.”

The proposal, co-signed by Akel boss Stefanos Stefanou, Disy MP Kyriakos Hadjiyiannis and independent MP Alexandra Attalides, seeks to repeal the law establishing the agency and transfer all its assets to the state scholarships foundation following a transitional period.

The move comes after a tense parliamentary audit committee hearing on Thursday regarding a video alleging corruption and influence linked to donations to the fund and the presidential palace.

Under the bill, the agency would cease to exist as a legal entity after a six-month transition, during which its management committee would be restricted to settling existing obligations.

All ongoing commitments to beneficiaries would be assumed by the scholarships foundation.

“The aim is to enhance transparency and accountability and avoid parallel structures,” the memorandum states, arguing that responsibilities should rest with an institution operating under a clearer statutory framework.

Attalides insists that the current framework was untenable.

“This body must come to an end; there is no accountability at present,” she said, arguing that the agency’s role should not disappear but be relocated.

“The competencies should be transferred to the scholarships foundation.”

She also raised concerns over governance, stating that “no politically exposed individual can be in charge of such an agency,”

“It must be under the responsibility of the state to avoid further discrepancies.”

The co-signature of Hadjiyiannis has apparently caused friction within Disy, which is preparing its own proposal to retain the fund but reform it.

According to information reported by Phileleftheros, Hadjiyiannis acted independently and does not reflect the party line.

Disy’s forthcoming bill is expected to remove the president’s spouse from any leadership role, impose a cap on donations and mandate disclosure of donors for contributions above €500.

State treasurer Andreas Antoniades told MPs he had sought guidance from the attorney-general on whether donor data could be released, saying, “After the commissioner’s positions are examined, an opinion will be given on whether the list will be forwarded to parliament.”

Akel MP Andreas Pasiourtides challenged the stance of the personal data protection commissioner, saying, “Parties are obliged to publish their donors in detail and by name, your lack of a position contradicts the law.”

Auditor-general Andreas Papaconstantinou warned that large donations from companies with state contracts raised concerns.

“Those who contribute to the fund likely have interests affected by government policy,” he said, citing what he described as an “unnatural pattern” of sharply rising revenues.

The fund rejected suggestions of impropriety, accusing the auditor of ‘political expediency’.

First lady Philippa Karsera, listed as chair on the fund’s website but absent from the hearing, said in a letter there was “no opposition on my part to the publication of all the donors’ data”.

Parliament is now awaiting the attorney-general’s position on donor disclosure, while the abolition bill is expected to be referred to committee before returning to the plenum for debate.