Audit report reveals severe weaknesses in Cyprus minimum guaranteed income administration
A special report published by the Cyprus Audit Office on November 11, 2026, has uncovered systemic failures and procedural weaknesses within the Welfare Benefits Administration Service (YDEP) regarding the Guaranteed Minimum Income (EEE). The audit found that the 'pre-approval' mechanism, intended as a three-month temporary measure for vulnerable citizens, was frequently misused, with 242 out of 252 examined applications remaining under this status for years, and 150 cases exceeding two years, sometimes reaching a decade.
Investigators identified egregious instances where benefits were paid to individuals possessing bank deposits of up to 680,000 euros or high-value real estate. Specific cases highlighted include an applicant who received over 102,528 euros between 2017 and 2024 based on false declarations, and another who continued receiving support while employed. Auditors noted insufficient documentation for legislative exemptions, lack of file management, and poor coordination between state databases.
The Ministry of Social Welfare acknowledged these findings but argued that the identified issues, based on a sample from 2014-2022, were addressed by 2023. The Ministry states that for the 11 audited cases involving long-term pre-approvals, seven have been terminated and four were granted permanent approval. The government claims to have implemented a new registry for complaints, improved real estate database integration, and finalized a unified procedural manual to ensure future compliance.