President Nikos Christodoulides has been let off the hook for some €55,000 the audit office had called on him to return to state coffers, after the attorney-general nullified the findings former Auditor-General Odysseas Michaelides made public, it emerged on Tuesday.

The issue was discussed in parliament, amid increasing calls from media outlets for answers over whether Christodoulides would pay the money or not, and what Attorney-General (AG) George Savvides had ruled on the matter.

Savvides’ findings were leaked to InBusinessNews which wrote “the legal analysis carried out by the auditor-general [sic, the former] was wrong and as a result reached wrong conclusions.”

The AG said not only were Michaelides’ findings wrong but he failed to ask for legal advice and overstepped his powers.

Michaelides was quick to respond, posting on X on Tuesday that Savvides had made the ruling only days before he took the step to have Michaelides fired.

This points to “the relationship between the presidential palace and the legal service. The legal service ‘wrote off’ the president’s dues and he silently gave the green light to request my dismissal.”

As far as the findings themselves are concerned, Michaelides said he was expecting the audit office to comment, as the report “was unilaterally approved by the managing team.” Except for himself, the team remains the same.

“Otherwise, I will revert,” he said.

Where Michaelides’ report had specified Christodoulides had not been entitled to a service vehicle in his capacity as government spokesman, Savvides refuted this, saying that since 2014 this was allowed.

Savvides also disagreed with Michaelides’ findings that Christodoulides’ maintenance allowance when he was travelling in official capacity as government spokesman was not allowed.

He cited a cabinet decision and legal regulation, and specified this was included in a finance ministry circular.

“It is also clear from the wording of the cabinet decision that the finance minister is authorised to take all necessary steps to implement the decision. Therefore, Mr Christodoulides was correctly receiving the relevant allowance,” Savvides ruled.

Savvides’ findings also nullified Michaelides’ points over Christodoulides’ appointment as government spokesman, which the latter said proper procedures had not been followed.

Christodoulides’ benefits were also discussed during the House audit committee last week, where it emerged he received an allowance for living abroad while he was in fact in Cyprus.

A previous audit report found Christodoulides received the overseas living allowance even though he had been called to return to Cyprus urgently. Until the foreign ministry issued its formal decision on the matter Christodoulides continued receiving the funds.

The foreign ministry had justified it because the diplomat’s family was still abroad, however Papaconstantinou said “the minute he returned to Cyprus, the allowance should have been cut off, even though we understand it wasn’t a clear case because he was called to reach Cyprus urgently.