Forestry department to amend law on state land after audit report

The forestry department announced on Thursday it is preparing amendments to modernise the framework regarding the leasing of state forest land, following scrutiny triggered by a critical audit report.

In a statement, the department said it agrees on the need to update the institutional framework and is working on changes aimed at addressing problems identified in the special audit report.

It affirmed its objective is to resolve deficiencies and improve sound management of state property.

“The protection of forests and biodiversity remains our primary priority,” the department said, adding that it is committed to close cooperation with the audit office and other competent authorities “to continuously improve procedures and remedy deficiencies”.

The report examined the period from 2018 to 2025 but, according to the department, many of the issues raised stem from decisions and practices dating back decades, in some cases even to the 1970s, within what it described as a “complex institutional and administrative environment”.

It said corrective and preventive measures have already been initiated.

A significant part of the audit focused on the leasing of state forest land, an area that has come under public scrutiny following revelations of lease expansions, environmental oversights and more than €1.3 million in overdue revenue.

The department said the main weaknesses identified relate to delays in the revision of leases, an issue it expects to address in cooperation with the cadastre, “with the aim of expediting the relevant procedures”.

It stressed that leasing of state forest land is permitted only for specific purposes and requires cabinet approval, consultation with all relevant departments and the determination of market rent by the land registry.

“The primary objective is not the leasing of land but the protection and preservation of forests,” it insisted, adding that leases are examined only upon request.

Addressing cases recently discussed publicly, including the Phini adventure park and the Machairas scout camp, the department said lease agreements include “explicit environmental conditions” and cancellation clauses where required planning or other permits are not secured.

It added that hotel leases in Ayia Napa stem from contracts agreed in earlier decades and “do not reflect current policy”.

The department said the planned legislative amendments will focus on issues such as the duration of leases, rent levels and compliance monitoring.

“Where violations of the legislation are identified, procedures are promoted for judicial action, in full cooperation with the legal service,” it said, adding that efforts to recover overdue revenues are now being intensified.