THE CYPRUS Institute (CyI) yesterday slammed deputies for trying to ‘politicise’ the findings of a report by the Auditor-general, which found a lack of oversight in its operations.
One of the most criticised aspects of the report from Auditor-general Chrystalla Georghadji related to Institute’s president, whose salary totalled over €157,000 because he was acting not only as head, but also as a professor, entitling him to two emoluments a year.
“The report of the Auditor-general did not reveal any scandal or wrongdoing,” the Institute said in a statement yesterday. It said the report had mainly focused on procedure and planning. “The Cyprus Institute welcomes any external review in vis a vis what it produces and the public funds at its disposal.” The statement said that comments by deputies, particularly House Finance Committee chairman Nicolas Papadopoulos, were attempting to politicise the Auditor-general’s report. “Research could never flourish in any state in the frames and conditions of political conflict and expediency,” the Institute said.
Papadopoulos, yesterday said the institute had been operating for years “in complete contradiction to the reasons for its establishment, violating transparency and good administration, and costing Cypriot taxpayers millions.
On Monday lawmakers heard how the institute’s president, Costas Papanicolas, was paid both as the institute’s director and as a professor, giving him a salary of €157,080, some 50 per cent higher than Dean of the University of Cyprus.
The matter was first brought to the attention of the Committee in December. It ordered Georghadji to investigate. In her report, presented on Monday, she said: “Apart from the fact that the CyI President’s salary, including allowances, amounts to €157,080 annually… the contract includes allowances which – at least as far as our Service is aware – are not included in other contracts of state officials or other staff paid from state resources.” The institute’s vice president is paid €117,000 a year, she added.
Iin December, Georghadji first noted that the institute was never audited, nor was there a credible accounting system in place.
The Institute – a non-profit science and technology research institution, formally established in 2005 – has been receiving funds from the state since 2003. “The state paid out €29.3 million by the end of 2011. CyI’s funding from non-government sources is minimal,” said Georghadji.” The institute has so far managed to secure only €3.7 million in funds from EU programmes.
Georghadji also noted that staff regulations were lax, contracts were disparate and work hours not checked.
Georghadji also referred to the appointment of the Research Promotion Foundation’s (RPF) director as CyI’s head of Research and Innovation without the position being opened to the public.
The Auditor-general said significant funds were spent on trips abroad while the institute cooperated with just one travel agent, and without checking for the best prices. She said some €600,000 had been spent in 2009-2010 on air tickets in this manner.
Furthermore, of the 2,500 students the Institute promised to attract by the end of 2010 with an estimated income of US$62.5 million, there are just 10 currently attending classes.
“The decision to create the CyI was based on a business plan, which has emerged to be excessively ambitious…as none of its goals were achieved,” said Georghadji.
“We are noting a gradual expansion of the Institute’s activities and commitments, without achieving significant external sponsorship other than state funds, with it being in visible danger of not becoming self sufficient – as provided by the business plan,” said Georghadji.
She suggested a reassessment of the CyI’s operation by independent evaluators, as well as the adoption of specific checking systems to ensure that any future state funds to the institute related to its progress.
