Administrative Weaknesses and Serious Errors Identified in Housing Finance Organisation Audit Report

A new report by the Audit Office reveals administrative weaknesses and serious errors within the Housing Finance Organisation (HFO) regarding the implementation of the contract for the supply and installation of a new Banking Information System (BIS). Despite the initial completion forecast of January 2021, the project was not implemented due to problems with the subcontractor's performance and internal administrative shortcomings of the HFO. The non-implementation of the new BIS led to the continued dependence of the HFO on the Cyprus Asset Management Company (CAMC) and the necessary upgrade of the existing system. This resulted in additional costs of at least €3.55 million for the period 2021-2025, excluding administrative expenses and other negative consequences. The report also highlights an irregular amendment to the original contract, which violates current public procurement legislation. The Audit Office calls on the HFO to take steps to improve project management and avoid similar problems in the future. Overall, the report demonstrates significant shortcomings in project management and the need to strengthen transparency and accountability within the HFO. The delay in implementing the new BIS has financially burdened the organisation and jeopardised its effective operation.