The absence of mechanisms to fight corruption has downgraded our country
By Achilleas Demetriades
Corruption in Cyprus in 2022 has filtered through most aspects of our society. First we need to identify the extent of the problem. Second, we have to look into the causes of corruption. Last but not least, we must put forward concrete proposals on how to fight it.
THE PROBLEM
Corruption during the ten-year tenure of Anastasiades’ government has reached unprecedented levels. The prime example is the mismanagement of the citizenship program, “the golden passports”. within the framework of the Cyprus Investment Program (CIP).
The Council of Ministers approved the naturalisation of foreign nationals, most of them (according to the report issued by former Supreme Court President, Myron Nikolatos, following an inquiry into the matter) did not meet the criteria set out by the relevant legislation.
As it has emerged, various ministers – but also the president himself – had some kind of connection with law firms or other offices which benefited from the naturalisation process which they themselves had approved. Such actions constitute an unprecedented “conflict of interest” as far as state institutions are concerned.
The maladministration of the CIP has also contributed to a price hike in the property market. The result was that young people trying to make ends meet could not afford their first home.
At the same time, the absence of mechanisms to fight corruption has downgraded our country as an investment destination and has reduced significantly the prospects of sound economic growth.
THE DIAGNOSIS
Corruption is the result of the absence of transparency; the lack of regulations to avert the appointment of persons who have a conflict of interest to important posts; and the inability of independent institutions to exert their authority with the necessary independent checks and balances on the Executive.
Due to the peculiarities of the Cyprus Constitution and the absence of bicommunal checks and balances since 1964, the institutional framework does not provide the necessary constitutional checks and balances to ensure the smooth running of the country.
Independent institutions (such as the attorney general or the auditor general) have an obligation to exert control over the government at any time so that it does not deviate from rules and regulations. At the same time, according to the Constitution, these independent officials are appointed by the president, something that provides (at least at first glance) incentives to appoint “trusted” persons in order to circumvent safety procedures provided by the Constitution.
Specifically, the present government has increased mistrust in the institutions, having appointed two ex ministers to the posts of Attorney General and Assistant Attorney General. Citizens may well wonder whether these persons can investigate impartially actions by the government in which they had participated.
The end result is that there is an inter-dependence between the independent officials and the Executive, which they have to check.
This inter-dependence contributes to impunity with regard to offenses related to corruption – in particular when it comes to the involvement of political persons – since the attorney general is the government’s legal counsel as well as the chief prosecutor.
The establishment of the anti-corruption authority and the appointment of the Commissioner of Administration, following the submission of a list of persons by an advisory council, is an important and positive step. Nonetheless, the new institution has weaknesses and its terms of reference have not yet been approved.
FIVE PROPOSALS
If we are to ensure the smooth running of the country and fight corruption, we have to put an end to the interdependence of the independent institutions and the Executive. We must create conditions to consolidate transparency and introduce regulations which will avert corruption.
To this effect, I put forward five proposals to set up an “Honest State” (for more details go to https://www.achilleas.eu/timio-kratos/):
Introduce a policy practice whereby the president holds consultations with the House as far as the appointment of independent officials, as these are set out in the Constitution. The House will hold public hearings (as in the European Parliament and the US Senate) to examine the persons proposed by the president.
Thus, the House will be in a position to exert pressure on the appointment, by the president, to ensure these persons are widely accepted and with the right qualifications. As time elapses, this will be established as a constitutional convention.
Regarding the appointments of independent officials to authorities, which were established by law or as a result of our obligations emanating from EU membership, I propose to pass legislation on the appointment procedure, based on the appointment procedure followed for the Commissioner of Administration (Ombudsperson).
This process to be applied also in the case of the chairmen of the board of directors of semi-governmental organisations, with a relevant amendment of the law governing such appointments.
Between now and the amendment of the law, and at the president’s initiative, the above described procedure of consultative hearings should be in place.
The competencies of the attorney general as the government’s legal counsel as well as the public prosecutor should be separated by creating another institution which will be the legal counsel of the Executive. Consequently, the attorney general will be able to function as the public prosecutor, without hindrance due to the being the Republic’s legal counsel as well. This separation has been implemented successfully in other Commonwealth states.
Finally, establish an effective and institutionalised procedure relating to the source of one’s wealth using as a prototype the proposal put forward by Pissarides, Panayiotides and Syrimis. Citizens have the right to know the annual financial situation of elected officials and their close relatives, any relevant changes, but also an explanation for such changes.
Corruption is one of the fundamental problems Cypriot society is facing. Having independent institutions is a key precondition to fighting corruption. A radical change in the way appointments are made to these institutions is imperative if we are to succeed in the effort to establish an “Honest State”. However, between now and the introduction of the relevant amendments in the current legislation, the president can (and should) implement, as of now, the consultative procedure of public hearings before the House.
Cyprus deserves better!
Achilleas Demetriades is a partner at the Lellos P Demetriades law office LLC and a 2023 presidential candidate.
