Lifting the Lid on Lobbying_Accountancy_article_December_en

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Lifting the Lid on Lobbying: Mapping the lobbying landscape in Cyprus
A recent 2012 report by Transparency International TI, found that in most European countries,
the influence of lobbyists is shrouded in secrecy and a major cause for concern. When the
practise of lobbying is undertaken with integrity and transparency, it becomes a legitimate
avenue for interest groups to be involved in the decisions that may affect them. However,
problems arise when lobbying is non-transparent and unregulated, and where privileged access is
granted to a select few while others are excluded from decision-making processes.
In a country where favouritism, bribery and nepotism thrive, the risks of unregulated lobbying
cannot be ignored. Findings from Transparency International’s 2013 Global Corruption
Barometer, reveal that a whopping 90% of Cypriots believe that their government is run by a few
big entities which are acting in favour of their own interests. Cyprus was by far considered the
most ‘captured’ of all European countries. This fact clearly indicates that unfair and uncontrolled
lobbying in Cyprus is rife – while it also suggests that companies and individuals with vast sums
at their disposal have developed close relationships with lawmakers and thus have undue
influence over politics and policy development. As Transparency International - Cyprus has
noted in the 3rd Annual Corruption Perception Survey (2013), Cyprus is infested with corruption.
A 91% of the survey respondents felt that corruption is a major problem in Cyprus, whereas 79%
also felt that it will increase due to the financial crisis.
In an effort to map the lobbying landscape in Cyprus, Cyprus University of Technology
Research Team, under the coordination of Associate Professor Maria Krambia – Kapardis, has
participated in the EU-funded project “Lifting the Lid on Lobbying”. Amongst the outputs of the
Project, was the drafting of the Cypriot National report for lobbying. This report is part of
regional project, which involves the assessment of lobbying regulation and practice in 19
European countries. The participating countries are Austria, Bulgaria, Cyprus, Czech Republic,
Estonia, France, Germany, Hungary, Ireland, Italy, Latvia, Lithuania, Netherlands, Poland,
Portugal, Slovakia, Slovenia, Spain, and the United Kingdom, as well as the Transparency
International Liaison Office of the EU. The project leader is Transparency InternationalSecretariat.
The Cypriot report aimed to highlight the risks of unregulated lobbying and assess the extent to
which ordinary people have access to information about who is influencing public decisions in
Cyprus. Amongst the aims of the report, was the investigation of whether there is an ethical
framework for lobbying in place in Cyprus and if there are enough spaces in the system to allow
for diverse participation and contribution of ideas by a broad range of stakeholders within the
decision making process. Cyprus is currently the only country within the EU without a general
legislation or regulation on lobbying. Consequently, due to the lack of any lobbying regulation,
there is no specific obligation to register lobbyists or disclose publicly the conducts between
public officials and lobbyists. In addition, given the lack of legal definition for lobbying in
Cyprus, lobbying does not appear to ‘exist’ in Cyprus.
From the interviews held with public servants, lawyers and a former Commissioner, it was
evident that there are a lot of individuals in Cyprus who are currently lobbying in an unofficial
manner as a means of gaining access to public officials and luring influential persons
participating in the decision making with different means so that they will defend specific
interests. As a result, lobbying and consequently the practice of lobbying in Cyprus, is perceived
mainly in negative terms with considerable suspicion and mistrust, due to the fact that the term
has been linked with favouritism, nepotism, corruption, manipulation and bribery.
Currently, Cypriots do not have sufficient knowledge regarding who is lobbying whom and for
what purpose. Thus, for lobbying to become a positive force within our democratic society,
transparency should be established as a means of preventing political corruption. The report
points out that Cyprus currently lacks the infrastructure to effectively regulate lobbyists and
lobbying practices. Findings indicate that that the broader legal environment in Cyprus does not
support ethical and transparent lobbying as there are major insufficiencies in existing laws,
absence of much-needed regulation to adhere to basic transparency standards as set out by other
EU and non EU Member States and lack of robust integrity mechanisms to regulate lobbyists and
those lobbied. As a result, the report recommends the improvement of existing legislation and the
creation of a compulsory 'Lobbied register' for MPs and high ranking governmental officials that
are being lobbied on important issues, to oblige them to disclose information about their
meetings and encounters with lobbyists. In addition to that, the existing public sector integrity
mechanisms should be improved in order to guarantee equality of access in the decision making
process. In an effort to ensure equality of access and allow for diverse participation in the
decision-making process, we therefore suggest the creation of a formal Register, which will be
publicly available on the Parliament’s website for all of the interested stakeholders wishing to be
heard by Parliamentary Committees. Through the creation of this Register, interested
stakeholders will be able to register to receive invitations for the meetings of the Parliamentary
Committee that they are interested in.
The Cypriot National report for lobbying does not only address the lack of any meaningful
regulation, but it also pinpoints the need for regulation in accessing information, whistleblowing
protection, assert declaration, conflict of interests and revolving doors. Evidence from the report
clearly suggest that Cyprus has a very long way to go before being able to effectively regulate
lobbyists, those lobbied and the lobbying practice generally.
The Cypriot Report on Lobbying can be found at: http://www.transparencycyprus.org/lobbying/
Christina Neophytidou
Research Associate
Cyprus University of Technology & Transparency International – Cyprus
c.neophytidou@cut.ac.cy & Christina.neophytidou@transparencycyprus.org
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