Philenews

Ministry of Interior Actions Justified by Paphos Revelations

Published March 1, 2026, 12:09
Ministry of Interior Actions Justified by Paphos Revelations

The Ministry of Interior is vindicated by recent revelations regarding the management of compensatory fees in the Municipality of Paphos. Development companies paid the fees to other contractors instead of directly to the Municipality, at the latter's direction. The Ministry of Interior issued a circular in March 2025 regarding transparency in compensatory fees, while on January 16, 2026, the Minister of Interior imposed the payment of 50% of the compensation to KOAG for affordable housing projects. The Union of Municipalities is reacting to the actions of the Ministry of Interior, arguing that municipalities have been managing special funds for public benefit projects for years without problems. However, the revelations about the Paphos case cast doubt on this view. The government seeks to ensure transparency and control in the management of compensatory fees, aiming to avoid omissions and utilize resources for projects that benefit the local community. This case highlights the need for stricter supervision and control in the management of municipal funds, as well as strengthening transparency and accountability of municipal authorities.