Philenews

Paphos Municipality Pension Fund: €1.16m Loan Was Legal, Says DISY – “Illegal” Claimed Municipal Employees

Published March 12, 2026, 12:17
Paphos Municipality Pension Fund: €1.16m Loan Was Legal, Says DISY – “Illegal” Claimed Municipal Employees

The DISY municipal group in the Paphos Municipality has issued a statement regarding the complaint made to the Crime Detection Department in April 2022, concerning the use of over €1 million from the pension fund for the purchase of land for student housing. DISY maintains that the €1.16 million loan was legal, following a municipal council decision and legal advice, and will be fully repaid by 2027. This position contrasts with the complaint filed by municipal employees, who characterized the action as illegal and contrary to the law, highlighting the risk to the sustainability of the pension fund. In their letter to the Superintendent of Professional Pension Institutions of the Ministry of Labor, they requested immediate action to ensure the proper functioning of the fund. The case concerns the decision of the Paphos Municipality to use funds from the pension fund to purchase a plot of land in order to build student dormitories. The disagreement focuses on the legality of using the fund's capital for purposes other than pension payments.