A special report by the Auditor General has revealed systemic irregularities in the Cyprus Ministry of Education's handling of hundreds of technical works contracts between 2015 and 2023, primarily through fast-track tendering procedures. The findings raise serious concerns about inflated costs, limited transparency, lack of competition, and inefficient planning.

According to the audit, the Ministry issued 686 simplified tenders during the eight-year period—averaging 76 per year—for projects typically valued in the tens of thousands of euros. Rather than consolidating similar projects into open tenders, the Ministry frequently fragmented them—a tactic referred to as "salami slicing." This approach limited economies of scale and discouraged competition, with many contracts attracting only a single bidder. In fact, 35.4% of the examined contracts had identical or near-identical scope, suggesting intentional avoidance of broader procurement procedures.

In 80.6% of the sampled contracts (50 out of 62), the average bid price exceeded the initial project estimate, sometimes by as much as 60%. In 29% of cases, the winning bid was at least 10% higher than projected costs. Moreover, 46.6% of final settlement records showed that actual expenditures exceeded contracted amounts by up to 40%. These outcomes point to flawed or outdated market assessments, as 48.3% of awarded contracts were above the Ministry’s own cost estimations.

The report also highlights troubling procedural lapses. In five contracts, inspection certificates were issued post-acceptance, weakening quality assurance controls. Additionally, in two cases, the estimated value of a project was revised after bid submissions, raising legal and ethical concerns about fairness and transparency.

At least two contracts awarded under fast-track rules exceeded the legal €50,000 threshold for such procedures. One example involved a project at Pervolia Public Kindergarten in Larnaca, where the estimated cost was €48,855 (excluding VAT), but the lowest valid bid reached €58,800—an increase of nearly 95%.

The Auditor General concluded that the Ministry’s extensive use of simplified tendering may be excessive or even abusive. The report recommends the development of a centralized, coordinated procurement strategy, emphasizing open tenders grouped by region or project type. Such an approach would enhance transparency, increase competition, reduce public expenditure, and optimize the use of both financial and human resources.