The three ministers removed from office in last Friday’s reshuffle face tight restrictions on taking up private-sector work for the next two years, under rules designed to prevent former officials from exploiting privileged information to benefit new employers at the expense of the state.
The provisions apply to former Energy Minister Giorgos Papanastasiou, former Labour Minister Yiannis Panayiotou and former Deputy Minister for Social Welfare Marilena Evangelou. Under existing law, all three must obtain prior approval from an independent three-member committee before undertaking any form of private employment. They must also disclose in writing the identity of prospective employers and the nature of the intended work.
The framework, created to protect the public interest, also covers former judges and former public and broader-public-sector officials, including police, military and fire service personnel who served at grade A13 or above.
Sensitive information concerns in the energy portfolio
The case of former Energy Minister Giorgos Papanastasiou is considered especially sensitive. Beyond high-level policy knowledge, he holds confidential information related to Cyprus’s strategic planning in energy and hydrocarbons. Before entering government, he worked for 26 years at BP, rising to senior management positions, and later served as CEO of VTT Vasiliko Ltd until his appointment as minister in February 2023.
For the next two years, he cannot work in related sectors unless granted approval by the committee, comprising representatives of the Legal Service, the Audit Office and the Treasury.
How the approval system works
The relevant legislation, the 2007 Law on the Control of Private-Sector Employment by Former State Officials and Public Employees, requires any former official seeking employment within two years of leaving office to apply to the committee. Applications must include:
• the name of the prospective employer
• full details of the job to be undertaken
• terms of employment and contract details
• records of transactions the applicant handled during public service, supplied by the relevant ministry or department
No employment may begin until the committee communicates its decision. Applicants must comply with all conditions or restrictions imposed.
The committee must examine applications within two months. Decisions are based on the public interest and take into account, among other factors:
• whether the applicant interacted with the prospective employer in the last two years of service
• whether the applicant had access to sensitive commercial or strategic information
• whether decisions taken in office may be perceived as benefitting the future employer
• whether the applicant helped shape undisclosed policies relevant to the new employer
Following assessment, the committee may approve employment without conditions, approve it with restrictions or reject it. Rejections have occurred in the past.
Anti-corruption safeguards and penalties
The system aims to prevent the misuse of inside knowledge, deter conflicts of interest and strengthen safeguards against corruption. Violations constitute criminal offences.
Penalties include:
• up to €10,000 and one year imprisonment for failing to apply
• up to €30,000 and three years imprisonment for submitting false information
• up to €30,000 and three years imprisonment for taking up work before approval
• up to €30,000 and three years imprisonment, plus €500 per day for ongoing violations, for ignoring committee decisions
• up to €8,000 and one year imprisonment for committee members who breach confidentiality
The committee’s work is regarded as a central pillar in protecting the integrity of public office, particularly when senior officials transition to sectors directly affected by their former duties.