The auditor-general plans to report the Cyprus Broadcasting Corporation (CyBC) for alleged abuse of power, with claims of improper salary upgrades, indiscriminate pay scale adjustments, and irregular staffing changes potentially increasing payroll costs by 33% from 2021 to 2026. The organization’s financial discrepancies and breach of trade union agreements have brought its fiscal conduct under scrutiny, raising concerns about the misuse of power and resources within CyBC.
What allegations is the Cyprus Broadcasting Corporation facing according to the auditor-general’s report?
The Cyprus Broadcasting Corporation (CyBC) faces allegations of abuse of power, including improper salary upgrades conflicting with trade union agreements and budget regulations, indiscriminate pay scale adjustments, and irregular conversions of part-time to open-ended contracts, potentially increasing CyBC’s payroll costs by 33% from 2021 to 2026.
Allegations of Fiscal Misconduct
The Cyprus Broadcasting Corporation (CyBC) is under scrutiny as the auditor-general prepares to bring forth allegations of abuse of power to the anti-corruption authority. This decision coincides with a special report unveiling financial discrepancies within the semi-governmental organization. Highlighted within the report is the contention that CyBC improperly upgraded several employees’ salaries, conflicting with existing agreements with trade unions and their own budget regulations, which hold legal weight.
The salary increments were intended to be temporary, outlined in job descriptions that were quickly discarded after the raises were distributed. These actions suggest a deliberate attempt to bypass standard protocols, offering certain staff, particularly those on open-ended contracts without the necessary academic or language qualifications, unlawful financial benefits.
Irregular Salary Adjustments and Staffing Changes
Over the period from 2021 to 2026, such adjustments are set to surge the CyBC payroll costs by an estimated 33 percent. Notably, the upgrades were indiscriminate, encompassing all contributors on open-ended contracts, regardless of their qualifications aligning with their job descriptions. Furthermore, four employees were moved to a higher pay scale, despite their degrees not being recognized by Kysats, the authority responsible for higher-education qualification recognition in Cyprus.
Between 2020 and 2023, CyBC also shifted part-time workers to open-ended contracts, a move considered in breach of agreements with trade unions and the organization’s budget. This involved 21 workers, with the new board, appointed in May 2023, reversing the upgrades for 19 of these individuals and calling for a review of their qualifications. However, the board did not seek reimbursement for the increased wages paid during the tenure of their upgraded positions.
Staffing and Expenditure Trends
From an operational perspective, the number of full-time employees at CyBC decreased from 90 in 2015 to 73 by 2023. In contrast, the total staff headcount increased from 433 to 445 within the same timeframe. This swell in numbers corresponds with a projected rise in expenditures from €26.4 million in 2019 to an anticipated €42.4 million by 2026, as per the audit office’s statements.
In response to these allegations, CyBC, through a statement released later on the same day, claimed that corrective actions had been undertaken following interaction with the auditor-general. The specifics of these actions, however, remain unclear.
Future Implications
The findings of the auditor-general’s report cast a shadow on the fiscal management practices of CyBC, potentially leading to profound repercussions for the organization. The report suggests systemic issues with the management of staff contracts and remuneration, which could lead to more stringent oversight to prevent further misuse of power and resources. The response of the anti-corruption authority to these allegations will be closely monitored, as it could set a precedent for accountability within semi-governmental organizations across Cyprus.
What allegations is the Cyprus Broadcasting Corporation facing according to the auditor-general’s report?
The Cyprus Broadcasting Corporation (CyBC) faces allegations of abuse of power, including improper salary upgrades conflicting with trade union agreements and budget regulations, indiscriminate pay scale adjustments, and irregular conversions of part-time to open-ended contracts, potentially increasing CyBC’s payroll costs by 33% from 2021 to 2026.
How has CyBC responded to the allegations brought forth by the auditor-general?
CyBC released a statement acknowledging the allegations and claiming that corrective actions have been taken following discussions with the auditor-general. However, the specifics of these corrective actions have not been disclosed to the public.
What are the potential financial implications of the alleged abuse of power by CyBC?
The improper salary upgrades, indiscriminate pay scale adjustments, and irregular staffing changes at CyBC could potentially lead to a significant increase in payroll costs by 33% from 2021 to 2026. This could have a substantial impact on the organization’s financial stability and budget management.
What are the broader implications of the auditor-general’s report on CyBC?
The findings of the auditor-general’s report raise concerns about the management of staff contracts and remuneration at CyBC, indicating potential systemic issues within the organization. The response of the anti-corruption authority to these allegations could set a precedent for increased oversight and accountability within semi-governmental organizations in Cyprus.
