Audit report reveals severe flaws in Cyprus' welfare benefit system
A new special report by the Audit Office of Cyprus, released on November 11, 2026, has uncovered systemic failures and administrative weaknesses within the Welfare Benefits Management Service regarding the Guaranteed Minimum Income (GMI). Investigators found that pre-approval, intended as a three-month temporary relief measure, was being extended for years. Out of 252 cases reviewed, 242 received payments without a final assessment, with 150 instances exceeding two years of duration. In extreme cases, payments were issued for up to a decade without proper verification.
The report highlights alarming instances where individuals with significant assets, including bank deposits as high as €680,000 and high-value real estate, continued to receive financial aid. In one notable case, an applicant received €102,528 between 2017 and 2024 despite providing false information. Auditors noted that insufficient documentation and lack of cross-referencing between databases led to state funds being paid to ineligible individuals.
In response, the Deputy Ministry of Social Welfare acknowledged the issues, stating that the findings originated from data covering 2014 to 2022 and were largely addressed by 2023. The Ministry claims that current pre-approvals are now limited to three to six months, and the specific cases identified in the sample have since been either terminated or formally approved after comprehensive reviews.