Cyprus is grappling with the repercussions of the ‘videogate’ scandal, as the Tax Office has initiated a thorough investigation into former Energy Minister George Lakkotrypis. The probe is ostensibly examining allegations of undeclared income, potential infringements of regulations governing post-ministerial employment, and possible breaches related to lobbying activities. This development marks a significant escalation in the fallout from covertly recorded footage that has cast a shadow over political integrity.
The inquiry centres on consultancy fees reportedly received by Lakkotrypis following his resignation from the ministerial post in July 2020. Specifically, tax authorities are meticulously scrutinising whether consultancy earnings, amounting to €15,000 as acknowledged by Lakkotrypis himself, were accurately declared and if Value Added Tax (VAT) obligations were adequately discharged. The investigation, which reportedly delves into financial activities spanning several years, was purportedly triggered by discrepancies between Lakkotrypis's account to police – stating payments were made via bank transfer – and references within the ‘videogate’ footage to remuneration being disbursed "only in cash." Such assertions immediately raised red flags regarding potential undeclared income and tax evasion.
Compounding the financial investigation is a parallel examination into Lakkotrypis's adherence to legislation governing employment undertaken by former state officials. A statutory two-year hiatus from engaging in private sector work directly related to his former ministerial portfolio is mandated, requiring explicit approval from a designated committee. Investigators are now assiduously determining whether Lakkotrypis sought or obtained the requisite authorisation for any private sector engagements during this sensitive period.
The ramifications of these revelations have extended to the parliamentary arena. The Parliamentary Committee on Institutions convened recently to dissect the efficacy and transparency of the committee tasked with overseeing the post-official employment of former dignitaries. The ‘videogate’ video itself served as a focal point for discussions, underscoring a broader concern about accountability and the potential for conflicts of interest among those 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, underscored the stringent confidentiality protocols governing her committee's deliberations, noting that any unauthorised disclosure could incur severe penalties.
However, the push for greater transparency is palpable. AKEL MP Irini Charalambidou's decision to withdraw from the committee, citing a desire to independently pursue official records pertaining to Lakkotrypis's case, signals a growing demand for access to decisions made by the oversight body. The potential penalties for VAT evasion are substantial, encompassing fines up to three times the owed amount, imprisonment for up to three years, or a combination of both. This ongoing investigation not only scrutinises the actions of a former minister but also casts a critical light on the mechanisms designed to prevent impropriety and ensure public trust in the governance of Cyprus. The Tax Commissioner, Sotiris Markides, affirmed the department's commitment to investigating any matter of public concern within its purview.