Cyprus audit watchdog gathers Deloitte evidence despite limits on its powers

Nicosia, Cyprus. Cyprus’ audit regulator continues to gather evidence concerning Deloitte Cyprus despite lacking authority to investigate events before its establishment in 2017, director general Panos Prodromitis said on Thursday. He said the regulator expected to have to respond to European bodies.

Evidence under assessment

Prodromitis said the Public Auditing Oversight Authority for the Auditing Profession (Adeelep) was collecting and evaluating information about the firm’s involvement in the Roman Abramovich affair.

Related: Christodoulides urges state and private sector to join forces on investment as study shows limited Limassol housing choice

RelatedChristodoulides urges state and private sector to join forces on investment as study shows limited Limassol housing choice

An investigation by BBC Panorama and the Organised Crime and Corruption Reporting Project (OCCRP), published on October 12, brought the matter to public attention. It alleged that Deloitte Cyprus had approved documents that were backdated for companies belonging to Abramovich.

Deloitte Cyprus has said it “acts in compliance with applicable laws”.

Abramovich has maintained that he sought independent advice from tax and legal professionals and followed it. His lawyers have rejected allegations that he had any involvement in tax evasion.

Jurisdiction and possible disciplinary action

Andreas Zachariadis, the authority’s chairman and permanent secretary at the finance ministry, told the House institutions committee on Wednesday that the regulator had approached Deloitte Cyprus, which had provided its interpretation of the matter.

Zachariadis said the case concerned events between 2003 and 2006, making information difficult to obtain. Deloitte had undertaken to provide any further information, he added.

He explained that the authority could not exercise jurisdiction over events preceding its creation and that its powers were disciplinary, not criminal.

For conduct occurring after 2017, Prodromitis said the authority’s board would review the matter and select an independent investigating officer if it considered a breach likely.