A former agriculture minister exercised his authority “in an entirely arbitrary and abusive manner” when he approved contradictory water licences for an illegal fish farm without investigation, according to a corruption report recommending his criminal prosecution.
Nikos Kouyialis signed off on two conflicting permits on the same day in September 2017—one for water extraction above the Trimiklini dam and another for supply from the dam itself—without studying correspondence or examining the issues raised, the Independent Authority Against Corruption found.
The 275-page report accuses Kouyialis of exploiting his ministerial position and recommends he face charges of abuse of power under Article 105 of the Criminal Code. The authority also seeks criminal prosecution of two department heads for colluding to issue licences ahead of a ministerial inauguration.
The investigation into the Trimiklini scandal examined how the Kouris River was illegally diverted to supply unlicensed fish farming operations between 2004 and the present. Investigators conducted 55 hearings and heard from 64 witnesses.
‘One evil brings a thousand sorrows’
The case began when a landowner sought to establish a sturgeon farm for caviar production in the Limassol district. He obtained a building permit in June 2009 and a fisheries licence in October 2011—but the licence mistakenly listed the location as “Trimiklini, Paphos” instead of Sylikou, Limassol.
Government officials across all departments operated in confusion throughout, the inspection officer found. Subsequent events confirmed the saying “one evil brings a thousand sorrows”, the report states.
Despite the administrative chaos, the then-agriculture minister inaugurated the fish farm on 10 February 2013.
Ministerial intervention
Kouyialis served as agriculture minister from March 2013 to February 2018 but never visited either of the owner’s fish farms, though he knew they existed because of a water extraction request.
When the General Director rejected the owner’s application to divert the Kouris River in August 2017, the owner filed an appeal. Kouyialis approved it on 13 September 2017 without following proper procedure.
His actions went further. Without any request from the owner, Kouyialis also approved water supply directly from the dam—creating two contradictory authorisations issued simultaneously.
The inspection officer concluded that Kouyialis approved the appeal “without any checks or investigation, not even studying the letters”, demonstrating “complete indifference” and approving “two different and conflicting licences”.
“It was clearly a premeditated decision, entirely arbitrary and abusive,” the report states.
Department heads coordinated licence issuance
The authority recommends criminal charges against two other officials: former Fisheries Department Director Loizos Loizidis and former Environment Department Director Kostas Hatzipapagiotou.
Loizidis signed fish farm licences in October 2011 and February 2013. The second licence came after Hatzipapagioutou sent a letter that the inspection officer described as illegal and entirely abusive.
The February 2013 licence was rushed through because the minister would inaugurate the facility days later and “the site needed to be legal”, the report found. The two directors knowingly circumvented legislation and regulations, relying on their positions to coordinate the licence issuance, according to the investigation.
Loizidis told investigators that without the licence, the fish farm would have continued operating illegally—a statement the inspection officer called arbitrary and unjustified.
Their actions may constitute abuse of power and conspiracy to commit a misdemeanour under the Criminal Code, the report states.
Systemic failures
Beyond the three criminal referrals, the authority identified potential disciplinary violations by seven officials.
Three Agriculture Department officials failed to conduct adequate checks on a Rural Development Programme application co-financed by European funds, with one violating contractual terms. Two others allegedly paid €657,000 to companies that appeared to lack required licences from the Registration and Control of Contractors Board, according to witness testimony.
Two Limassol District Administration officials failed to take legally required action against illegal structures from November 2017, leaving the case pending for six years through what the report called excessive delay and indifference.
One Fisheries Department official issued licences without verifying that conditions were met, acting in an unorthodox manner that violated legislation.
The inspection officer noted that the Environment and Fisheries directors showed “unjustified and abusive haste” to issue the fish farm licence ahead of the inauguration, bypassing normal procedures and creating “apparent rather than actual legality”.
The report also highlighted systematic exploitation of time through continuous exchanges of letters and meetings claiming constructive dialogue, resulting in repeated deadline extensions without genuine intention to resolve problems.
The authority has referred the case to the Attorney General for action on criminal matters and to relevant bodies for disciplinary proceedings.
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