Phedonos rejects allegations, swears vengeance on ‘smear campaign’

Suspended Paphos mayor Phedonas Phedonos responded on Tuesday to ongoing allegations concerning embezzlement and administrative malpractice, lambasting the accusations as part of an “organised smear campaign”.

The mayor, who is currently on mandatory leave, stressed that the municipality remains “the only one in Cyprus with audited accounts up to 2024,” whereas other municipalities accounts extend “even up to 2016.”

In a post on social media, Phedonos retorted that “when the first plot fails, the next one is deployed, when one category cannot be substantiated, a new one is ‘discovered.’ This is a coordinated campaign”.

He cited a post by the municipality dated October 22, 2024, to underline that audited financial statements up to 2024 have been completed, submitted, and sent to the auditor-general.

“Good administration and transparency have never been a communication trick. They are at the core of the municipality’s administration, evidenced by the audited accounts, proving the economic and development results and confirmed by European recognition,” he wrote.

The mayor, who remains entitled to one third of his salary while on leave, concluded that “the organised effort to tarnish me will not go unanswered, neither institutionally nor politically.”

His remarks come amid investigations spanning multiple allegations of financial and administrative irregularities, including unlawful recruitment, misappropriation of funds and the improper management of Turkish Cypriot property.

Investigations into the municipality began following a complaint filed in April 2022 by a municipal employee who was allegedly dismissed shortly after ‘raising concerns’.

The inquiry, handled by Paphos CID and later CID headquarters in Nicosia, focuses on four main allegations.

These include the alleged diversion of €1.5 million from the municipal employees’ pension fund, unlawful recruitment practices, the subletting of Turkish Cypriot property for commercial use without legal authority, and misuse of the mayor’s official vehicle with overtime payments for municipal employees acting as drivers.

Police and audit-office examinations indicate that recruitment practices for five positions, including two senior roles connected to Smart City projects, bypassed required approvals from the interior and finance ministry.

The positions, offering salaries up to the A13 scale (€53,258 plus allowances), were advertised and offered before written authorisation was obtained.

Investigators also found that an individual appointed as assistant director of Smart City Projects had not submitted an application, and in another case, appointments were given to candidates who had failed the required exams.

The municipal council, according to documents, applied a statistical adjustment to exam scores to highlight certain candidates for interviews, despite warnings from the University of Cyprus’ vice-chancellor.

Phedonos has defended these appointments, asserting that “everything was legal and based on approval from the competent ministries.”

He characterised the criticisms as politically motivated and an attempt to undermine his standing ahead of the 2028 elections.

The alleged misappropriation of pension funds relates to the purchase of land intended for student accommodation, a transaction challenged by trade unions as a breach of law.

Investigators are examining whether the transaction served the interests of fund members.

Similarly, the subletting of a Turkish Cypriot residential property in the Mouttallos area is alleged to have been carried out without legal authority or operating permits, raising potential breaches of property management and planning regulations.

Parallel criminal investigations have been conducted into separate allegations against Phedonos, including rape and domestic violence claims.

These prompted his suspension under the municipalities law, a decision upheld by the administrative court after the mayor’s appeal.

The court emphasised that public interest outweighed arguments of “irreparable harm,” given the serious nature of the criminal allegations.

Acting Paphos mayor, Angelos Onisiforou, has instructed all municipal department heads to cooperate fully with the audit-office and police investigations.

Phedonos has consistently rejected wrongdoing, describing the investigations as a “coordinated attempt to undermine my public standing” and linking the scrutiny to political rivalries and disputes with figures including businessman Theodoros Aristodemou.

He dismissed claims relating to planning permits and property disputes as “pure nonsense” and “trivial accusations,” including a complaint alleging he conditioned the issuance of a permit on the withdrawal of a police complaint.

No decision has been made regarding criminal charges.