The Parliamentary Committee on Institutions, Values, and the Commissioner for Administration met on Wednesday to discuss, on its own initiative, the role of civil society in combating corruption. During the session, Auditor General Andreas Papaconstantinou announced that the Audit Office will launch a software platform by June allowing individuals to submit anonymous reports or complaints.

The committee session was prompted by recent media coverage of a non-governmental organization (NGO) operating in the healthcare sector, which was allegedly involved in the misuse of funds.

Committee Chair Demetris Demetriou noted that this case highlighted the need to examine how civil society is structured, regulated, and monitored—both in Cyprus and across the EU—particularly in relation to corruption risks.

Auditor General Papaconstantinou emphasized that the Audit Office places great importance on cooperation with NGOs, especially in areas such as environmental protection and migration. He cited a recent visit to Akamas, where NGOs shared their views ahead of a forthcoming report.

He underlined the need for regulatory frameworks to govern all organizations and associations, stressing the importance of financial transparency and oversight, particularly regarding income and expenditures. “There must be control and transparency in the functioning of NGOs,” Papaconstantinou stated.

He confirmed that the new reporting platform will ensure complete anonymity for individuals submitting concerns to the Audit Office.

A representative of the Ministry of Interior said the ministry maintains a registry of associations, foundations, and federations, most of which are classified as NGOs. However, the representative acknowledged that the ministry has limited legal authority to audit their financial records.

Although organizations are obligated to submit financial statements, the ministry can only request additional data and has no powers to investigate the origin of funds. The representative also referred to Moneyval obligations regarding anti-money laundering and counterterrorism financing, noting that training seminars for NGOs are planned in this context.

The representative clarified that cases involving competition violations are referred to the Commission for the Protection of Competition, and those involving tax evasion are sent to the Tax Commissioner.

A Justice Ministry representative said that a national anti-corruption strategy and action plan were developed in 2018, with legislative proposals drafted. These responsibilities have since been transferred to the Independent Authority Against Corruption.

The Ministry clarified that no specific legal definition of an NGO exists in Cypriot law. NGOs may be registered as foundations, associations, or as non-profit companies under the Companies Registrar, with an obligation to submit audited accounts.

A representative from the Law Office of the Republic noted that upon completing an investigation, the Attorney General must assess the evidence and, if conditions are met, proceed with criminal prosecution. One such case involving an NGO—referenced by the committee chair—concerns the alleged embezzlement of approximately €80,000 and is scheduled for trial in September.

A representative from the Cyprus Bar Association said the association has actively contributed to strengthening the national legal framework against corruption. Efforts include training seminars for lawyers and upcoming school programs aimed at promoting a culture of zero tolerance.

The Commissioner for the Citizen’s Office (formerly the Office of the Commissioner for Volunteerism) stated that the office provides support to NGOs and helps promote public consultation on related policies.