Andreas Papacharalambous, the former Mayor of Strovolos, has forcefully rejected accusations of financial mismanagement made by the current municipal administration. The core of this controversy involves a significant debt of €2 million owed to the municipality by a private company. Current officials contend that this sum has regrettably increased to €2.3 million during Papacharalambous’ leadership.
Recent public statements from the Strovolos Municipality allege that the former mayor mishandled this substantial debt, reportedly relating to outstanding entertainment tax payments. They maintain that a critical decision made by Papacharalambous around 2020, which involved temporarily pausing some repayment obligations, was implemented without the necessary municipal council approval. This action, they assert, has directly contributed to the debt's escalation.
In response to these allegations, Papacharalambous has presented a strong defence, asserting that his actions were strategically designed to preserve the entire amount owed. He explained that at the time of his decision, the private company was engaged in crucial negotiations with its banking partners regarding loan restructuring. The former mayor believes that insisting on immediate, full repayment would have undeniably led to the company's bankruptcy.
Papacharalambous further argued that by offering the company some financial flexibility, its operational capacity was successfully maintained. He suggested this was a pragmatic strategy intended to prevent a complete business collapse, which would have jeopardised the municipality's ability to recover any funds. His position indicates a calculated risk taken to protect a larger financial interest.
The €300,000 increase in the debt has become the central focus of this public dispute. While the current municipality views this as evidence of poor financial stewardship, questioning the decision's prudence, Papacharalambous frames his intervention as a necessary measure to avert a more detrimental outcome. This exchange highlights a significant divergence in financial governance perspectives within Strovolos.