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Serious Flaws in Housing Finance Organisation's IT Project, Audit Office Finds

Published January 20, 2026, 08:25
Serious Flaws in Housing Finance Organisation's IT Project, Audit Office Finds

The Audit Office has identified serious flaws and delays in the implementation of the Housing Finance Organisation's (HFO) new Information System (IS) project. The project, launched in 2018 with a budget of €10.245 million, aimed to replace the old Sopra system and offer modern banking services. However, the subcontractor's performance was deemed problematic as early as 2021, leading to the project being 'frozen' and not delivered on schedule. The delay in making critical decisions, such as the termination notice which was sent almost three years after the completion date, worsened the situation. Furthermore, the incomplete composition of the Board of Directors and the prolonged vacancy of the General Manager position contributed to the inability to effectively manage the project. By the end of 2024, the HFO had paid €3.45 million for the project, without receiving a functional new IS. This led to the necessary continuation of cooperation with the Cyprus Asset Management Company (CEDIPES) and the payment of significant amounts for the maintenance of the old system. The Audit Office estimates that the total additional cost to the HFO, due to the non-implementation of the new IS, amounts to at least €3.55 million for the period 2021-2025. This figure does not include administrative costs incurred due to the delay and inefficiency. The Auditor General emphasizes that the failure to implement the project is a matter of strategic importance for the HFO, as information systems are the backbone of a financial institution.

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