The head of the road transport department has been suspended for two months pending an investigation into allegations of misconduct, it emerged on Saturday.
Sotiris Kolettas is under investigation in connection with various claims concerning his links with a bus company.
In Decmber, the cabinet appointed state Treasurer Rea Georgiou, to investigate the possibility of disciplinary and other offences being committed by the transport chief.
Reports emerged earlier that month that the communications ministry’s audit department had sent a letter to the permanent secretary, informing him that Kolettas had refused to fine Intercity Buses – even after he was told to so by his superiors — despite the company repeatedly violating its contract for two and a half years.
Kolettas ignored the minister’s instructions, informing the company that no fine would be imposed.
The audit department’s letter said this was not the first time Kolettas handled the company in question in a favourable manner.
The letter said Kolettas appeared to have a special relationship with the chairman of the board, Xenofon Andreotis.
It did not mention what this relationship was, but reports alleged it concerned the purchase, by Kolettas, of a villa in Paralimni worth €400,000, from a company in which Andreotis was a shareholder.