Nicosia, Cyprus. The Cyprus government said there was nothing improper or irregular in a no-bid contract awarded to Greece to develop the Digital Citizen app. The statement responded to an Audit Office report that raised transparency concerns over the €1.5 million direct assignment.
Audit Office findings
The deputy ministry of research, innovation and digital policy responded to the auditor-general’s findings, which said questions of transparency hover over the direct assignment of the project to the Greek government via an inter-state agreement.
The Audit Office noted that awarding public contracts via an inter-state agreement is permitted under EU Directive 2014/24, but the auditor-general expressed concern that such legal approaches to bypass open tender procedures may become the norm.
About the Digital Citizen app
The Digital Citizen is the official mobile app through which people may create and retain official documents in digital format for use within Cyprus. The app currently incorporates the personal identity card, the driver’s licence and the vehicle roadworthiness certificate, and users must hold the corresponding paper document to create a digital version.
Contract award and subcontracting
In 2024, the government directly awarded the contract for developing the app to Greece’s ministry of digital governance, which then assigned the project to a sub-contractor, a private company in Greece. The Audit Office report said the same company had earlier been picked to develop the digital wallet app for the Greek state.
Cost estimate and timeline issues
The report flagged the absence of a cost estimate for the project and noted that the commencement of the contract predated the signing of the agreement between the two parties. It said that while a memorandum of understanding with Greece was signed in June 2024 and the official agreement in October 2024, correspondence indicated work on the Digital Citizen had already begun in March 2024.
What do you think about using inter-state agreements for technology contracts instead of open tenders?
