Cyprus anti-corruption authority has referred a high-profile case involving the diversion of water from the Kouris river, alleged illegal fish-farm operations, and suspected misuse of state land to the Attorney General, after an ex officio probe spanning conduct dating back to 2004. 

At the core of the findings is what the Authority describes as a chain of administrative failures and alleged abuse of power across multiple departments, with potential criminal liability attributed to 3 individuals and possible disciplinary responsibility to 7 others. 

The announcement outlines a long-running dispute over water extraction rights and licensing. It says a business owner sought to develop fish-farming operations in Trimiklini and Silikou, including for sturgeon and caviar production. While a building permit for fencing and a water reservoir in Silikou was issued in 2009, the fish-farm operating licence issued in 2011 by the Department of Fisheries and Marine Research reportedly contained an error that identified the location as “Trimiklini, Paphos,” an inconsistency the report says persisted in subsequent licences as well. The Authority says this contributed to confusion “across time” among public services involved in oversight and licensing. 

A particularly serious set of conclusions concerns former agriculture minister Nicos Kouyialis. According to the Authority’s summary of the investigator’s findings, Kouyialis approved a hierarchical appeal by the owner in September 2017, reversing an earlier rejection of an application to divert water from the Kouris river upstream of the Trimiklini dam. The announcement claims the approval was granted without following the lawful procedure, and further alleges that the minister also approved, without a relevant request, the supply of water from the dam itself. The investigator is quoted describing the approvals as contradictory, handwritten, and made without research or proper examination of the file, framing them as arbitrary and abusive use of ministerial authority. The Authority says this may amount to the criminal offence of abuse of power under Cyprus’ Criminal Code. 

The Authority also points to potential criminal responsibility for two former senior officials: then-director of the Department of Fisheries and Marine Research, Loizos Loizidis, and then-director of the Environment Department, Costas Hadjipanayiotou. It says the licensing process for the fish-farm was pushed through in a way described as unlawful and abusive, including allegations that an environment-related letter enabling the issuance of a 2013 licence was sent “illegally.” The announcement further alleges that the licence was expedited so the facility would appear “legal” ahead of an inauguration to be conducted by the minister, with the investigator concluding that legal procedures and regulations were knowingly bypassed. The Authority says these actions may support offences including abuse of power and conspiracy to commit a misdemeanour. 

Beyond individual liability, the announcement sketches systemic governance weaknesses: inadequate checks in subsidy and rural development programmes, weak or “superficial” on-site verification, and failures to ensure that contractors had required registrations. In one section, it states that €657,000 was paid to companies that, based on testimony cited, appear not to have held the necessary licences from the contractors’ registration council, with the investigator indicating possible disciplinary offences by the responsible civil servants. 

It also highlights prolonged enforcement inaction. The Authority says two officials in the Limassol District Administration allegedly failed, from November 2017, to take legally required measures against illegal structures in the Trimiklini area, leaving the matter unjustifiably pending for six years. 

In its broader observations, the investigator warns against a culture of “formal” compliance that prioritises appearances over legality, including criticism of rushed approvals to accommodate political inaugurations. The statement adds that government officials should verify the legality of projects before agreeing to attend openings, otherwise they risk being “exposed.” 

The Authority says the case file has now been sent to the Attorney General for decisions on the potential criminal aspects, and to the competent bodies for any disciplinary procedures.