Cyprus is currently confronting the significant repercussions stemming from the widely publicised 'videogate' scandal. Consequently, the Tax Office has officially commenced a comprehensive investigation into George Lakkotrypis, the former Minister of Energy. This probe is specifically examining allegations concerning undeclared income, potential violations of regulations governing post-ministerial employment, and possible breaches related to lobbying activities. This development represents a substantial escalation in the ongoing fallout from covertly recorded footage that has severely impacted perceptions of political integrity.
The central focus of this inquiry revolves around consultancy fees that Mr. Lakkotrypis reportedly received subsequent to his resignation from the ministerial position in July 2020. Tax authorities are meticulously scrutinising whether consultancy earnings, which he himself acknowledged to be €15,000, were accurately declared. Furthermore, they are investigating whether Value Added Tax (VAT) obligations were adequately met. This investigation, which is understood to delve into financial activities spanning several years, was purportedly initiated due to marked discrepancies. These differences arose between Lakkotrypis's statement to the police, indicating payments were made via bank transfer, and references within the 'videogate' footage suggesting remuneration was disbursed "only in cash." Such assertions immediately triggered serious concerns regarding potential undeclared income and tax evasion.
Compounding the financial investigation is a parallel examination into Lakkotrypis's compliance with legislation governing employment undertaken by former state officials. A mandatory two-year cooling-off period from engaging in private sector work directly related to his former ministerial portfolio is stipulated. This period necessitates explicit approval from a designated committee. Investigators are now diligently assessing whether Mr. Lakkotrypis sought or obtained the requisite authorisation for any private sector engagements during this sensitive timeframe.
The ramifications of these revelations have already extended into the parliamentary arena. The Parliamentary Committee on Institutions recently convened to critically evaluate the effectiveness and transparency of the committee responsible for overseeing the post-official employment of former dignitaries. The 'videogate' video itself became a focal point for discussions, highlighting a broader concern about accountability and the potential for conflicts of interest among individuals transitioning from public service to the private sector. Ms. Gianna Hatzihanna, President of the Committee on Control of Undertaking of Work in the Private Sector by Former State Officials, emphasised the strict confidentiality protocols governing her committee's deliberations. She noted that any unauthorised disclosure could result in severe penalties.
However, the impetus for enhanced transparency is undeniably palpable. AKEL MP Irini Charalambidou’s recent decision to withdraw from the committee, citing a desire to independently pursue official records pertaining to Lakkotrypis's case, clearly signals a growing demand for access to the decisions made by the oversight body. The potential penalties for VAT evasion are substantial, encompassing significant fines, imprisonment, or a combination of both. This ongoing investigation not only scrutinises the actions of a former minister but also critically examines the mechanisms designed to prevent impropriety and uphold public trust in Cyprus's governance. The Tax Commissioner, Sotiris Markides, reaffirmed the department's unwavering commitment to thoroughly investigating any matter of public concern within its jurisdiction.