The defence ministry continues to face organisational issues and structural inertia that in many cases incur a fiscal cost, a report published on Tuesday said.

The Audit Office report covers the years 2021 through to 2024.

One issue flagged related to the merger of various departments of the defence ministry with the army general staff. Under a plan dating back to 2015, this was intended to streamline operations and cut down on operating costs.

For example, the defence ministry and the army general staff were to be housed in the same premises – something which was achieved by April 2019.

But despite this, the number of military personnel posted at defence ministry departments has risen, not dropped according to the streamlining plan.

In addition, the report noted delays in moving into premises owned by the government (the defence ministry), meaning that the practice of leasing is widespread.

Another issue was the failure to implement computerised systems tracking important functions – such as requisitioning or orders of expropriation.

As a result, the data is entered manually into spreadsheets like Excel – increasing the likelihood of human error.

Efforts to set up a computerised system that could link up to the central governmental database came to nothing.

In another section, the Audit Office recounts an incident dating to early 2023, when then-president Nicos Anastasiades pledged a €2.5 million grant to Greece’s air force.

The gesture was intended as a “display of solidarity” with Greece after the crash of a Greek Air Force plane in January 2023. Anastasiades announced the €2.5 million – essentially a gift to the Greek military – during a visit to Athens in February 2023.

His public pledge translated into a commitment by Cyprus, and the funds were disbursed – irregularly, since there was no such provision in the defence ministry budget.

On a more granular level, the Audit Office found continued irregular use of military vehicles for the transportation of personnel – both military and civilian – from their homes to work. This in turn results in over-consumption of motor fuel, which cuts into the fuel quotas of the various military units.

This practice is in violation of the law. The auditor-general said that if the army general staff wishes to engage in this practice, it should petition the government to change the law.

Elsewhere the report noted delays in installing photovoltaic systems at National Guard camps – which posed the risk of losing out on EU funds.

According to an explanatory note in the Audit Office report, “the main mission of the defence ministry is to protect the territorial integrity and the independence of the Republic of Cyprus from any hostile threat”.