The audit service on Monday published a report flagging mismanagement and oversights by the forestry department in managing four contracts as part of the sustainable development plan for the Akamas peninsula.

The audit service stressed that the remit of the report did not include the environmental impact of the project, which had in the past drawn up broad criticism by environmental groups.

“Although it was not part of this special report to investigate the environmental impact on Akamas due to construction work, (…) there seems to be a division between the competent bodies on whether or not environmental conditions have been complied with,” the report said.

The contracts were part of two key actions under the plan, three of them concerning road network upgrades and a fourth involving the creation of 14 visitor nodes with basic facilities such as parking, toilets, and refreshment points.

“The audit findings highlight shortcomings and omissions by the forestry department that resulted in significant delays, increased costs and a failure to protect the public interest,” the report read.

According to the report, project objectives were poorly defined, causing delays and the need for an additional supervision contract. The report also criticised the use of award procedures without prior publication for design and supervision, breaching procurement law and eventually leading to regulatory violations.

“The forestry department did not act in a timely manner, resulting in additional claims on behalf of the contractor of around €500,000 and the loss of €1 million in guarantees,” the audit service said, referring to the road network improvement plans.

Regarding the fourteen infrastructure nodes, the report found that contracts were tendered before securing the required environmental assessment, failing to adequately evaluate potential ecological impact. This later resulted in forced design changes, which came at a 135.3 per cent cost increase from an initial estimate of €2.8 million to €6.59 million.

“The audit highlighted the need for substantial improvement of the procedures of the forestry department to ensure the effective, economical and efficient implementation of projects in the Akamas forest park in compliance with the relevant legislation,” the audit service stressed.

The department awarding tenders before securing the necessary environmental or other approvals led to several problems, including changes to the project design after the consultants’ contract had expired, the report found. This eventually led to issuing of a new tender for the completion of the unfinished works, launched without prior publication.

Additionally, the appointing of a supervising engineer after work began is believed to have caused delays and costs that might have been avoided with earlier planning.

“In the project to improve part of the main road network of the Akamas special forest park, there was a significant unjustified delay on the part of the contractor,” the report said, stressing that the latter was “clearly, from the beginning of the project, unable to comply with his contractual obligations”.

The report found that the forestry department, despite issuing warning letters to the contractor, failed to terminate the contract in a timely manner. By the time the project was officially suspended, 94 per cent of the time had passed with 17.67 per cent of the work done, the contractor cancelled the contract.

The report listed several mistakes in following legal procedures, recommending that the forestry department secured all necessary approvals before launching future project tenders.

The audit service also advised improved contract management, including close monitoring of progress during projects, the timely handling of contractor requests, and regular performance reports.

The forestry department later on Monday commented on the matter, stressing that it took the audit service’s recommendations seriously.

“The forestry department has already taken steps to improve the procedures for promoting new construction projects and monitoring relevant contracts, while also promoting further training of personnel,” the department said.

The department said the Akamas projects were designed “after many years of diligent and arduous efforts to reconcile all the positions of the various services.”, adding that the Phase A construction contract for road network improvements was currently being handled by the relevant state authorities, and therefore “no public statement can be made.”

The Cyprus Ecological Movement on Monday afternoon commented on the report saying it “confirms state incompetence”, adding that the forestry departments mismanagement had “led to the embezzlement of public funds.”

It criticised the audit service’s report for focusing solely on the aspect of financial mismanagement, while failing to address environmental damage caused by the Akamas project itself, arguing it was “a great waste of public and natural resources and a great threat to the future of the habitat.”

Back in January, roadworks in the Akamas National Forest Park were halted after the contractor, Cyfield, had terminated the contract citing prolonged suspension of work and unpaid dues.

The government had equally announced plans to revise the project, while disciplinary investigations into the forestry department were underway. The incident added to a string of cancelled contracts signed under the previous administration.