A one-year holdup in the redevelopment plan for Turkish Cypriot properties at Mackenzie beach cost the state nearly €1 million, with progress only resuming following the dismissal of the former Auditor General.

A one-year delay in implementing the rationalization plan for specific commercial premises in Mackenzie, which operate on Turkish Cypriot land, reportedly resulted in the loss of nearly one million euros for the state. Responsibility for this loss appears to be attributed to Odysseus Michaelides, who, in his capacity as Auditor General, imposed a freeze on procedures by citing legal issues regarding the strict interpretation of the law.

As soon as the dismissed Auditor departed from the Service, a way was found to overcome the obstacles. This allowed the state to finally capitalize on several Turkish Cypriot plots that possessed very high commercial added value.

The case dates back many years but took on new dimensions in July 2023, when the Audit Service's Special Report (No. TTP/01/2023, 24/5/2023) was presented to the Parliamentary Committee on Refugees. The report made specific reference to the Mackenzie area, where extensive illegal subletting of Turkish Cypriot commercial premises was identified, leading to a significant loss of revenue for the Turkish Cypriot Property Management Service (TCPMS). The Committee took immediate action, requesting the TCPMS to draw up a plan for rationalization and the restoration of legality.

On September 23, 2023, the TCPMS presented a plan providing for the granting of the premises to current managers via seven-year contracts with a right to one renewal. This was intended to allow for the depreciation of investments already made. It is worth noting that when these premises were originally leased, they were not the glamorous venues we see today, but humble shacks that many would describe as a public nuisance to the area.

Under the plan, a competitive bidding process would follow the expiration of these contracts. The scheme was estimated to bring in approximately one million euros annually.

During the presentation, the then-Auditor General expressed strong objections. He reportedly revolted against the plan, arguing that it led to the granting of premises to individuals who, in his view, were not eligible beneficiaries. This reaction resulted in a freeze on the signing of new contracts, even though they had already been prepared by the TCPMS. While there were indeed some controversial issues regarding the procedure, the central point remained: by implementing the proposal brought before Parliament, the state stood to gain €1 million a year while upgrading the area's image. The Municipality of Larnaca has also expressed significant satisfaction, seeing its revenues increase under the new arrangements.

Following the dismissal of Odysseus Michaelides in September 2024, the TCPMS moved swiftly to conclude agreements with the managers of the disputed premises. The new contracts now yield €960,000 annually for the Service. Sources from the Ministry of Interior point out that the one-year delay—from September 2023 to September 2024—led to the loss of a corresponding amount, which would have flowed into state coffers had the plan been implemented on time.

Source: Offsite News