Audit report reveals severe failures in Cyprus welfare benefit management

A new special report by the Cyprus Audit Office, published on November 11, 2026, has uncovered critical weaknesses in the management, monitoring, and evaluation of the Guaranteed Minimum Income (GMI) scheme overseen by the Deputy Ministry of Social Welfare. Auditor General Andreas Papaconstantinou warned that these systemic failures increase the risk of public funds being distributed to ineligible individuals, thereby undermining the credibility of the social welfare system.

The investigation, which analyzed 252 pre-approved files, found that 242 cases continued receiving benefits without a final eligibility decision. Notably, 150 of these cases remained in a pre-approval status for over two years, despite a standard three-month deadline for submitting documentation; some instances persisted for up to a decade. The report highlights cases of improper payments, including one individual who received 102,528 euros between 2017 and 2024, as well as beneficiaries holding large bank deposits or significant real estate assets, despite legislative limits. The Audit Office has called for immediate corrective measures to ensure that state support is directed only to those in genuine need and that legislative requirements are strictly enforced.

Moving forward, the report (No. EE-EY 33/2026) highlights the urgent need for enhanced oversight mechanisms within the Welfare Benefits Administration Service to prevent the misuse of public resources.