Cyprus’ Deputy Ministry of Research, Innovation and Digital Policy has rejected findings contained in a report by the Audit Office of the Republic of Cyprus concerning the “Digital Citizen” project, insisting that no illegality, irregularity or improper action has been identified or substantiated.
In a written response, the Deputy Ministry states that, on the contrary, both the content and the introduction of the report demonstrate that the assignment, implementation and management of the project were based on provisions of national and European law.
It argues that, rather than explicitly recording that all actions were lawful, the report limits itself to expressing concerns over certain procedural aspects. The Deputy Ministry further claims that detailed and documented positions it had submitted from the early stages of the investigation were not taken into account in the drafting of the final report, leaving what it describes as “unsubstantiated and vague references” that could create misleading impressions of wrongdoing - something it “categorically” rejects.
Legal oversight from early stages
As an example, the Deputy Ministry disputes the Audit Office’s position that a legality check was carried out shortly before the signing of the contract. It maintains that this is inaccurate, stating that the Legal Service of the Republic of Cyprus had been involved as early as April 2024 in drafting the Memorandum of Cooperation and again from July 2024 regarding the final agreement.
This process, it adds, was conducted in cooperation with the corresponding legal service of the Ministry of Digital Governance.
The Deputy Ministry notes that legislative scrutiny began in April 2024, prior to the signing of the Memorandum in June and the formal Agreement in October 2024. It also states that the project complied with the views of the Public Procurement Authority and received the consent of the Office of the Commissioner for Personal Data Protection.
Intergovernmental cooperation framework
According to the announcement, the project stems from the Greece–Cyprus Intergovernmental Summit of November 2023 and was implemented through inter-state cooperation, on the basis of an explicit provision of EU law allowing collaboration between Member States for the provision of public services.
The Deputy Ministry says it maintains a full contractual relationship with the Greek Ministry, including clauses safeguarding the public interest. The provision allowing for acceptance of deliverables within 20 days is described as standard practice in similar agreements.
Regarding cost, it states that this was determined the intergovernmental agreement, making use of existing technological infrastructure and a mature solution. This approach, it argues, resulted in significant savings in time and resources compared with developing a new system from scratch. Safeguards have also been included to ensure future independence and adaptability of the system, given the fixed duration of the current contract.
Future plans and European digital identity
On the European Digital Identity Wallet (EUDI), the Deputy Ministry says that the obligation to implement it does not diminish the importance of the “Digital Citizen” application. It notes that nearly all Member States have proceeded with national applications irrespective of European obligations.
The EUDI framework, it adds, remains under development, with Member States facing technical and design challenges as to whether it will function as a standalone solution. Given the duration of the current agreement, the Deputy Ministry says it intends to launch an open tender procedure either for the further development of the existing application incorporating the European dimension or for the implementation of a distinct solution.
Commitment to transparency
The Deputy Ministry maintains that it acted with transparency and legality throughout the project’s implementation, fully within national and European frameworks and with the involvement and approval of the competent authorities.
It describes “Digital Citizen” as a central pillar of the Republic of Cyprus’ digital transformation strategy, arguing that cooperation with the Hellenic Republic enabled the rapid and secure deployment of a functional digital solution within months.
Finally, it states that it remains open to technocratic dialogue and will seriously examine the observations of the Audit Office, with the public interest and the continuous upgrading of digital services for citizens as its steady priority.