In a contentious session of the House Audit Committee, the Cyprus Audit Office revealed concerns over an external allowance paid to President Nikos Christodoulides during his time as a diplomat between March and May 2013.

The allowance, totaling approximately €16,500, was intended to offset the high cost of living abroad. However, it continued for three months after Christodoulides was recalled to Cyprus, raising questions over adherence to allowance regulations.

Documented in the Audit Office’s 2022 report, the issue centers on Christodoulides’ return from Brussels to assume a director role at the Foreign Ministry in Nicosia. According to regulations, foreign allowances are to cease upon a diplomat’s reassignment to Cyprus. However, the Audit Office noted that no formal ministerial approval had been issued for the continued payments, which were reportedly used to cover the expenses of his family who remained in Brussels.

The case first surfaced under former Auditor General Odysseas Michaelides, who demanded repayment of the allowance via an official letter, sparking a dispute with the Presidential Office.

The Audit Office has called for stricter oversight by the Foreign Ministry to address inconsistent practices in allowance and expense claims. Foreign Ministry officials defended the decision, citing exceptional circumstances, including financial strain and family obligations due to Christodoulides’ abrupt reassignment.

The Audit Office’s report also revealed additional irregularities, such as a diplomat’s undisclosed property ownership while receiving rental subsidies and rising healthcare costs for diplomats posted in the U.S. and China.

The Foreign Ministry has stated that it is addressing the Audit Office’s recommendations and revisiting regulations to enhance financial accountability.