The public broadcaster’s provident fund has been run in such a shambolic way over the past few years, that it raises legitimate suspicions of embezzlement, MPs heard on Thursday.

Lawmakers were discussing the management of moneys by the provident fund of the Cyprus Broadcasting Corporation (CyBC).

Despite catering to employees of the CyBC, which is a corporation governed by public law, the provident fund itself is governed by different legislation – the Societies and Institutions Law as updated in 2017.

During the discussion in parliament it quickly transpired that the fund is operating ‘unlawfully’, having failed to amend its regulations so as to comply with law in question.

Because the fund operates under this law, it may not be audited by the auditor-general. In order for the Audit Office to check the accounts, it would need special authorisation via a court order.

Given the various shenanigans spotted, MPs urged the attorney-general’s office to request such a court order immediately.

One incident that stood out dates to October 2020, when the amount of €3.6 million – initially to be allocated to establish another benefits fund – ended up with CyBC’s provident fund instead, following an agreement between the fund’s board of directors and the finance ministry.

It turned out that the divvying up of this money – lump sum payouts to active and retired employees – was done in an “unorthodox manner”. As a result, this led to four lawsuits by CyBC employees who had contributed to the provident fund but did not get their fair share.

MPs pointed out that, should the plaintiffs win their case, it would be taxpayers who would foot the bill.

Another episode that raised eyebrows involved the provident fund board’s decision to gift the then interior minister a painting. This happened in 2021.

The painting was worth €4,000. In addition, it later turned out that it was painted by one of the members of the fund’s board of directors.

Parliamentarians called this “a gross conflict of interest.”

However, Greens MP Stavros Papadouris rushed to qualify that he did not suspect the interior minister of any wrongdoing. The interior minister at the time was Nicos Nouris, during the second term of the Nicos Anastasiades administration.

“It’s totally unorthodox that those who make decisions also benefit from the money as a result of these decisions,” Papadouris commented.

“Otherwise we’ll get to the point where members of the board of a fund – since as they say they cannot distribute money to the fund’s members, as the charter states – will find a way to provide services and take the money through the backdoor.”

The MP was evidently referring to a clause in the Societies and Institutions Law, according to which a non-profit may not distribute any profits to its members; any earnings must rather be invested.

For her part, independent MP Alexandra Attalidou spoke of “unbelievable allegations” heard about the provident fund in parliament.

She said that since the state had decided to place all provident funds under the Societies and Institutions Law, it was now the state’s responsibility to check the funds’ financial management.

Meanwhile members of CyBC’s senior management, also present in parliament, pledged to take action to end the ‘illegality’ of the provident fund’s operation in its current form.

CyBC’s provident fund was set up in 1987. Its charter provided for the “collective benefits” of retirees as well as active employees.