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Wednesday, March 4, 2026
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Forestry Department Under Fire for Lease Irregularities and Alarming Revenue Shortfall

**Nicosia, Cyprus** – The Forestry Department of Cyprus is currently embroiled in a significant controversy, facing stern criticism from the Audit Office following a comprehensive report that has illuminated systemic deficiencies in the management of state forest lands. The audit, which meticulously examined practices between 2018 and 2024, has unearthed a litany of irregularities concerning lease expansions and a staggering €1.3 million in uncollected revenue, raising serious questions about oversight, environmental stewardship, and the financial probity of the department.

Auditor General Andreas Papaconstantinou has characterised the findings as "deeply concerning," underscoring a pressing need for a fundamental overhaul of the department's operational frameworks. The report details instances where state forest land leases were expanded without adequate justification or proper procedural adherence. In one particularly flagrant case involving an adventure park in the Foini community, a lease agreement was ultimately signed for a plot double the size initially applied for. This substantial expansion, from 20,000 to 40,000 square metres, was reportedly approved by the Cabinet, yet the leaseholder did not formally lodge an application for the increased area until 2023, a full eight years after the initial lease was granted in 2015. Furthermore, the leaseholder failed to commence crucial construction obligations from 2015 onwards, a dereliction of duty that the department appears to have largely overlooked.

The audit’s scope extended to other sensitive ecological areas, including the Macheras National Forest Park, which is part of the Natura 2000 network. Here, a lease was granted to an association without, according to the auditors, due consideration for the protected Cypriot grass snake, a species known to inhabit the vicinity. Alarmingly, the department had previously acknowledged the snake's presence in the area, yet the environmental report submitted by the lessee made no mention of this vulnerable wildlife. This omission points to a critical failure in environmental impact assessments and the enforcement of conservation protocols, particularly within protected zones.

Beyond the procedural and environmental lapses, the financial implications of these management failures are substantial. As of December 2023, the Audit Office reported that over €1.3 million in revenue remained outstanding, with a significant portion of this amount, approximately €1 million, directly attributable to state forest land leases. This uncollected revenue represents a direct loss to public coffers and raises concerns about the department's efficacy in financial stewardship and revenue collection. The audit also revisited recommendations from a prior 2017 review, finding that many of these earlier concerns had not been adequately addressed, suggesting a pattern of inertia or insufficient action within the department.

The Audit Office's report concludes with a stark summation of its findings, emphasising "the need for a substantial strengthening of leasing procedures, environmental compliance, supervision, and financial management, as well as the adoption of transparent processes for the allocation of state forest land." The implications of these revelations are far-reaching, potentially impacting biodiversity, eroding public trust in the management of invaluable natural resources, and necessitating a rigorous re-evaluation of the Forestry Department's governance structures and accountability mechanisms. The department has acknowledged a lack of documentation explaining the lease expansion, stating, "There are no minutes explaining why the area doubled," a candid admission that does little to assuage the growing public and governmental apprehension.

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