Authorities are turning a blind eye to a Nicosia event venue that has been operating without an approval certificate, the Audit Office said on Tuesday, warning that public health and safety are not guaranteed.

The venue has been functioning for about 19 months, hosting weddings, parties, and performances by well-known singers, drawing large crowds, the office said.

“The failure of the state to effectively address unauthorised constructions and impose strict penalties creates a negative precedent and encourages unfair competition at the expense of those who follow legal procedures,” Auditor-General Andreas Papaconstantinou wrote in the introduction to a special report published on the Audit Office’s website.

A compliance inspection was launched following a complaint about “irregularities” in the construction of the event venue in the Nicosia district.

The report found that construction began in 2018 without the necessary permits. The building was completed in 2020, and only in 2023 were town planning and building permits issued – for use as an event venue and film studio. Nevertheless, the site continues to operate as a nightclub without an approval certificate, as it has not met the conditions stipulated in the permits.

Furthermore, the delayed inspections and backdated permits have resulted in additional costs for the state.

The Audit Office warned that granting permits retroactively, after a venue is already built and in operation, undermines fair competition, particularly for similar businesses that followed legal procedures.

The report stressed that the venue, despite drawing heavy traffic, continues to operate with the tolerance of authorities – without an approval certificate – meaning public health and safety requirements may not be met.

“In this case, the effectiveness of the state in carrying out town planning and construction inspections is seriously called into question,” the Audit Office said.

Papaconstantinou described it as a textbook case of a building erected without even the most basic permits.

“It is particularly concerning that the deputy tourism ministry issued a restaurant licence, even though no building permit had been obtained,” he said, calling this an erroneous practice that the ministry appears to follow systematically.

He added that the state bears full responsibility for protecting the public, who are unaware that the building lacks the necessary approvals.

“The lack of decisiveness in taking firm action leads inevitably to faits accomplis and puts officials and civil servants in impossible dilemmas when it comes to finding remedies,” he concluded.