€26.3 million in legal fees owed to the Republic by foreigners

Thousands of foreigners owe the Republic several million euros legal fees, with the total sum amounting to €26.3 million, according to an audit report published on Tuesday.

“Amounts payable to the Republic of Cyprus and delays in issuing court orders and collecting awarded amounts (as revenue for the Republic) have resulted in the amount receivables for 2024 reaching €26.3 million,” the report read.

According to findings of the report, the money is owed by asylum seekers – a total of 22,717 as of 2024 – who initiated legal proceedings against the Republic regarding their deportation.

“A major part of the problem stems from debts owed by foreigners (…),” it highlighted.

The likelihood of retrieval of funds is low as some of these people no longer reside in Cyprus.

The report continues by emphasising the “well-known issue” of legal aid provided by the Republic, which had been mentioned in previous reports .

“[It] appears to be subject to abusive application but does not appear to be managed effectively because it is deemed “sensitive” [and] places an even greater burden on public finances,” the report continues.

The report found several issues regarding how the sum of €26.3 was accumulated.

These include delays of up to 10 years in collecting awarded amounts in certain cases and delays of up to six months in examining applications for the suspension of execution of warrants due to a lack of systematic monitoring.

Moreover, it describes monthly instalments as low as €20, which, according to the Audit Office, are determined without a specific basis and may be lower than the actual administrative costs.

The report also found that those applying for the suspension of legal fee orders tended to pay an amount shortly before or on the day they submitted their application so as to increase chances of approval.

Furthermore, it was found that those applying for the suspension of fine orders tended to pay an amount shortly before or on the day they submitted their application as to increase the chances of approval, despite their previous inconsistency in paying instalments related to previous suspensions.

The report concluded that these fees primarily impact individuals who cannot afford them, as their legal costs are typically covered by state-funded legal aid.

On the whole, the report underlines the necessity to enhance the structuring of procedures to ramp up the efficiency of the Legal Service.

“The above findings highlight the need to further strengthen internal procedures and organisational structure, as well as the need to make better use of information systems to ensure the efficient management of the large volume of cases that the Legal Service is called upon to handle,” it concludes.