Ayia Napa mayor faces trial over EU grant fraud allegations

On September 28, 2026, the trial of Ayia Napa Mayor Christos Zannettou commenced at the Permanent Criminal Court regarding allegations of irregular acquisition of an EU grant. Zannettou, who served as a shareholder and director of a hotel during the period in question, stands accused alongside the company L. Ioannou & Z. Pieris Limited of forging 2007 financial statements, which were submitted in 2009 to the Cyprus Tourism Organisation (CTO) to secure funding totaling €765,486. The mayor has pleaded not guilty to all charges.

During Monday’s proceedings, prosecution witnesses including a senior audit officer, Ilias Liasi, and assistant secretarial officer Danae Antoniadou provided testimony regarding the application process. The case originated from a 2019 report by the Audit Office, which alleged that the hotel’s 2007 financial statements were manipulated to misrepresent loan figures. Under cross-examination, Liasi confirmed he oversaw the grant report, which had been prepared by his subordinates.

The trial is scheduled to resume on October 8, 2026, when the first prosecution witness is expected to testify after returning from abroad.