State loses over €5m in fees from six unused pleasure boat mooring areas
The audit office told MPs that six mooring areas granted to private companies in 2018 remain non-operational, with more than €5 million in state fees uncollected.
Nicosia, Cyprus. The state has lost more than €5 million in fees from six pleasure boat mooring areas that have remained unused since being granted to private companies in 2018, the audit office told MPs on Thursday. None of the sites is operational and no fees have been collected.
Fees suspended pending permits
The companies were authorised to develop the sites and were required to pay annual state fees ranging from €75,000 to €262,000.
However, they requested that payments be suspended until they obtained the permits needed to build and operate the mooring areas.
The legal service advised in 2021 that the companies would not be required to pay the fees until the necessary permits had been secured.
Delays and oversight concerns
The audit office said the loss resulted from bureaucratic delays in amending the law and a failure to properly monitor whether the companies were meeting their obligations.
It said the existing system for charging the fees was unconstitutional and that the law should be changed.
Six sites granted in 2018
The six sites were granted through a cabinet decision in 2018 in Peyia, Alaminos, Ha Potami, Pachyammos and Softades.
The facilities are smaller than marinas and are intended to provide berthing for up to 150 pleasure boats. The companies were required to obtain planning and environmental permits before beginning operations.
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