Cyprus

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ANTI-CORRUPTION LAWS IN CYPRUS In Cyprus, there is a general perception that there is little corruption. International surveys confirm that corruption is not perceived as widespread in Cyprus. It can be said that Cyprus is well equipped to deal with threats of corruption, however, there is room for further improvement in the direction of the formulation of an anti-corruption strategy and the implementation of unified, detailed anti-corruption and bribery provisions which will clearly combine the rationale of the EU current provisions as shown through the Criminal Law Convention on Corruption and the domestic legislation in place.

Does your country have a bribery or anti-corruption law?

Cyprus still lacks a comprehensive anti-corruption and bribery piece of legislation.

However, the Penal Code (Cap.154) defines a series of offences of official corruption, such as extortion by public officers, abuse of office , or neglect of official duty. In addition, the Prevention of Corruption Law Cap. 161 provides for sanctions to be taken against both public and private corruption. The Public Service law contains special anti-corruption provisions and a corresponding code of conduct allows for compulsory retirement or dismissal after a disciplinary punishment.

Furthermore, Cyprus has proceeded with the ratification of the Criminal Law Convention on Corruption (ETS 173) by adopting Law 23(III)/2000, according to which the acts and conduct referred to in the Convention constitute criminal offences in Cyprus which are punishable with imprisonment and/or a pecuniary sentence without prejudice to the trial court to impose any other sentence or to issue any order which it may impose or issue in the adjudication of criminal cases.

Additionally, in order to ratify the Additional Protocol to the Criminal Law Convention on Corruption (ETS 191), Cyprus adopted Law 22(III)/2006, which with reference to Law 23(III)/2000 which also incorporates the offences of the Additional Protocol to the Criminal Law Convention into the criminal legislation of Cyprus.

Does it prohibit payments to a governmental official for the purposes of gaining an improper advantage or getting business? Does it apply to the payor as well as the recipient of the bribe? What is the definition of “bribery”? What are the sanctions for violation?

In Cyprus prohibitions regarding corruption and bribery are more general and therefore stricter. The public officials are prohibited from accepting any kind of gifts, not just bribery payments in the stricter sense.

GIFTS Public Service Law covers inter alia the responsibilities, obligations and generally the conduct of public officials.

Neither the Penal Code nor the Public Service law define “bribery” as such.

However, the issue of “gifts” to public officials (more general than bribery) is regulated in the Penal Code- Cap 154 (Passive Bribery). Gifts are covered in more detail by section 69 of the Public Service Law which states the following: 1) No public officer , shall either directly or indirectly , receive or give any presents in the form of money, other goods, free trips or other personal benefits , other than ordinary gifts from or to personal friends. This provision may be relaxed by the Council of Ministers in specified cases where the Council of Ministers considers that it would be undesirable or contrary to public interest for the present to be refused

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2) Where it would be undesirable in the public interest to refuse a present, the public officer may accept the present but shall immediately report the matter to his Head of Department, whereupon the present shall be dealt with in the prescribed manner.

3) A public officer shall immediately report to his Head of Department the offer to him of a present made contrary to the provisions of this section and the present shall be dealt with in the prescribed manner.

4) If a monetary or other present is offered or given to an officer in consideration of a service rendered or to be rendered by him in his official capacity, the officer must immediately inform the Head of Department.

If these rules are violated, a public officer is liable to disciplinary proceedings according to the procedure laid down in the Public Service Law. OFFICIAL CORRUPTION- S. 100 of the Penal / Criminal Code Any person who a) Being employed in the public service , and bring charged with the performance of any duty by virtue of such employment , corruptly asks, receives or obtains or agrees or attempts to receive or obtain , any property or benefit of any kind for himself or any other person on account of everything already done or omitted to be done , or to be afterwards done or omitted to be done, by him in the discharge of the duties of his office; or b) Corruptly gives , confers or procures, or promises or offers to give or confer ,or to procure or attempt to procure , to , upon , or for any person employed in the public service , or to upon , or for any other person, any property or benefit of any kind on account of any such act or omission on the part of the person so employed,

Is guilty of a misdemeanor, and is liable to imprisonment for three years and also to a fine.

EXTORTION BY PUBLIC OFFICERS – S.101 Penal Code Any person who, being employed in the public service , takes or accepts from any performance of his duty as such officer ,any reward beyond his proper pay and emolument or any promise of such reward is guilty of misdemeanor , and is liable to imprisonment for three years, and also to a fine.

PUBLIC OFFICERS RECEIVING PROPERTY TO SHOW FAVOUR-s.102 Penal Code Any person who, being employed in the public service, receives any property or benefit of any kind for himself, on the understanding , express or implied , that he shall favor the person giving the property or conferring the benefit , or any one in whom that person is interested in any transaction then pending , or likely to take place between the person giving the property or conferring the benefit, or any one in whom he is interested ,and any person employed in the public service , is guilty of a misdemeanor and is liable to imprisonment for two years and also a fine.

Moreover, according to s. 105 of the Penal Code – ABUSE OF OFFICE Any person who, being employed In the public service , does or directs to be done , in abuse of the authority of his office, any arbitrary act prejudicial to the rights of another is guilty of a misdemeanor.

If the act is done or directed to be done for purposes of gain he is guilty of a felony, and is liable to imprisonment for three years.

Furthermore, as noted above, all provisions of the Criminal Law Convention on Corruption have been ratified and apply in their totality.

What is the definition of “governmental officials”? Are officers of stateowned enterprises considered governmental officials? Does the law apply to persons other than governmental officials, such as candidates for political office?

Public Service Law, section 2, provides a definition which states what is “ the public service” and therefore impliedly any person who holds office in the public service may be considered as “governmental official” .That definition excludes from coverage the judicial service, service of the Armed or Security Forces , service in the office of the Attorney-General or the Auditor General or their Deputies or Service in any office provided for by other provisions of law or service by those whose remuneration is calculated on a daily basis or service by persons who are employed on a casual basis in accordance with “Employment of Casual Workers” . The Public Service Law is complemented with several regulations. Public Administration also covers regional and local authorities and any other legal person or entity of public law.

By virtue of the Penal Code ( Cap 154) a “person employed in the public service” means any person holding any of the following offices or performing duty the duty thereof , whether as a deputy or otherwise namely : a) Any civil office including the office of Governor, the power of appointing a person to which or of removing from which is vested in the Governor ort in the Governor in Council or in any public commission or board or b) Any office to which a person Is appointed or nominated by law or by election or c) Any civil office , the power of appointing to which or removing from which is vested in any person or persons holding an office of any kind , included in either of the two last preceding paragraphs of the definition or

d) Any office of arbitrator or umpire in any proceeding or matter submitted to arbitration by order or with the sanction of any Court, or in pursuance of any Law. In Cyprus, state-owned enterprises are set up for reasons of promotion of public

interest

and

therefore

establish

themselves

as

governmental

departments in some sense. The officers of state-owned enterprises come within the definition of “governmental officials”, as it is clearly demonstrated by case law which grants them the benefits and obligations of governmental officers.

Are there defenses to violations of the law? Are there any exceptions?

The prohibition as it concerns the payments and/or gifts to public officials is almost an absolute prohibition, This provision may be relaxed by the Council of Ministers in specified cases where it would be considered undesirable or contrary to public interest for the gift to be turned down. If this is the case, the gift should be reported immediately to the Head of Department.

What has been the recent enforcement history of the law?

As stated above there is no comprehensive anti-corruption and/or bribery act and there no recent measures enforced except the domestic law which enforces/ ratifies the United Nations Convention against Corruption (see below) as well as the ratification of the Criminal Law Convention on Corruption and all the provisions it entails.

Has the country signed and ratified the UN Convention against Corruption?

Cyprus signed the UN Convention against Corruption on the 9th December 2003 and ratified it on the 23rd February 2009.

Cyprus is a member of the Group of States against Corruption (GRECO) of the Council of Europe.

As pointed out in GRECO’s Third Round Evaluation Report on Cyprus, “Cyprus has ratified the Criminal Law Convention on Corruption (ETS 173) and its Additional Protocol (ETS 191) and made the offences contained in these instruments directly applicable as domestic law.

However, despite the fact that this legislation has been in force for several years, it has never been applied by the prosecutorial authorities nor by the courts.

Instead, theses authorities have continued to exclusively apply old legislation concerning corruption offences, which does not comply with the requirements of the Criminal Law Convention and its Additional Protocol.

The co-existence of old and new legislation which overlap makes the legal framework in respect of corruption offences inconsistent. For the sake of legal clarity, GRECO sees a clear need to establish a uniform legal framework and to make sure that it is applied in practice.”

Christina Orphanidou

LL.B (Hons), LL.M

Marianna Georghadji

BSc Econ, LL.B (Hons), LPC