The Audit Office has highlighted the need to strengthen transparency in the functioning of the Independent Social Support Fund, according to its latest report.

Head of the Service, Andreas Papaconstantinou, stated that the goal is to reduce the risk of the Fund’s positive work being overshadowed by public doubt or criticism.

The Social Fund provides financial assistance to students who face difficulties continuing their studies.

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The Auditor General noted that during the audit, it was found that significant donations to the Fund were made by companies maintaining some form of business relationship with the state. He clarified that such cases do not necessarily indicate intent or wrongdoing, nor is it unusual for private companies — as part of their social responsibility — to support a charitable organization.

However, Mr. Papaconstantinou emphasized that what is particularly concerning is the presence of factors that, individually or collectively, could undermine public trust.

He added that the Audit Office believes the current system of operation and management is insufficient to ensure the level of institutional integrity required when philanthropy intersects with state authority.

To enhance transparency, the Audit Office recommends that donations should only be accepted from contributors who consent to the publication of their contributions.

The Management Committee of the Independent Social Support Fund has rejected these claims, stressing that no irregularities were found during the compliance audit.

In a statement issued on behalf of the Committee, the Accountant General and Treasurer of the Body, Andreas Antoniadis, said that the issues raised by the Audit Office go beyond the remit of an auditing authority. He noted that a legal opinion has been requested from the Law Office of the Republic.

According to the statement, the Audit Office carried out a compliance audit following a complaint, examining whether the Social Fund has operated within the legislative and regulatory framework in force since 2015. “After a thorough, months-long review, the conclusion was clear — no irregularity or wrongdoing was found regarding either donations or financial aid,” Antoniadis said.

The Committee argued that the Audit Office introduced additional issues “outside the scope of the audit” and “without supporting evidence,” which, it claimed, could cast unwarranted doubt on state officials and institutions.

It further underlined that the Social Fund operates fully in line with the Constitution and Cyprus’ legal framework. The Committee clarified that the provision assigning the First Lady as Chair of the Body is legally established and does not create a conflict of interest.

The statement added that all decisions are made based on published eligibility criteria, without access to personal data, ensuring impartiality and equal opportunities. Donations and financial assistance reports have also been submitted to the House of Representatives to strengthen accountability and parliamentary oversight.

The Committee reiterated its “zero tolerance for non-transparent practices” and reaffirmed that the Fund’s work is “purely institutional and above political exploitation.”

“The Independent Social Support Fund will continue to serve its mission with transparency, respect for institutions, and commitment to the public interest,” the statement concluded.