Cyprus rocked by political scandal as first lady and presidential aide resign over leaked video

Cyprus has been plunged into political turmoil following the resignation of the country’s first lady and a senior presidential aide after the emergence of a leaked video that appears to show senior figures discussing methods to circumvent campaign finance laws and use charitable donations as a pathway to political influence. The scandal has triggered a criminal investigation, intensified scrutiny of political funding practices, and raised questions about governance and transparency at the highest levels of the Cypriot state.

At the center of the controversy is an eight-minute video that began circulating online last week, posted by an unidentified account on the social media platform X. The footage appears to capture private conversations involving Charalambos Charalambous, the director of the president’s office and brother-in-law of President Nikos Christodoulides, and former energy minister Giorgos Lakkotrypis. In the video, the men are seen speaking with individuals presented as foreign investors about presidential campaign financing, access to senior officials, and potential ways to bypass Cyprus’s statutory limits on campaign spending.

The fallout was swift. On January 11, First Lady Philippa Karsera Christodoulides announced her resignation as chair of the Independent Social Support Body, a state-created charity that provides financial assistance to students facing economic hardship. A day later, Charalambous tendered his resignation as director of the president’s office, citing the need to protect the credibility of the presidency and the government. President Christodoulides confirmed that he had accepted the resignation.

In her statement, the first lady said she was stepping down to safeguard her family’s integrity amid what she described as “false and malicious attacks.” She strongly denied that she or any member of the charity’s governing committee had personally benefited from the organization’s activities. Nonetheless, her departure underscored the gravity of the political crisis and the pressure on the administration to demonstrate accountability.

The video itself has raised troubling allegations. In one segment, Lakkotrypis appears to refer directly to Cyprus’s legal campaign spending cap, which he says is approximately one million euros. “So sometimes they have to depend on cash to be able to go above that budget,” he appears to say, suggesting that off-the-books contributions are used to exceed legal limits. At another point, he directs the alleged investors to Charalambous, presenting him as the primary intermediary for campaign-related matters and access to the Presidential Palace.

The footage also briefly features the chief executive of Cyfield, one of Cyprus’s largest construction companies. In the video, the executive claims to have donated hundreds of thousands of euros to the Independent Social Support Body and says those contributions provided him with “close and easy access” to the president. While no explicit quid pro quo is shown, the implication that charitable donations could facilitate privileged political access has alarmed both opposition lawmakers and civil society groups.

The Independent Social Support Body, which now finds itself at the center of the storm, was established by law in 2014. It operates outside the national budget and relies on voluntary donations, with oversight provided by the auditor general. The charity’s mission is to support students from low-income backgrounds, and it has been widely promoted by successive governments as a socially beneficial initiative. Philippa Karsera Christodoulides has chaired its governing committee since March 2023, shortly after her husband assumed the presidency.

President Christodoulides has denied any wrongdoing, stating that neither he nor his administration engaged in illegal campaign financing or improper conduct. He has described the video as misleading and has suggested that it may be part of a broader “hybrid attack” aimed at damaging Cyprus’s international reputation. The government has emphasized that the timing of the scandal is particularly sensitive, as Cyprus is preparing to assume the rotating presidency of the Council of the European Union.

Despite these denials, the controversy has reignited long-standing concerns about transparency, political financing, and conflicts of interest in Cyprus. Fact Check Cyprus, an independent watchdog organization, said that an initial review of the footage found no obvious signs that it had been manipulated using artificial intelligence. However, the group cautioned that the identities of those who produced and released the video remain unknown, and that its full context has yet to be established.

Law enforcement authorities have launched parallel investigations. Police are examining the origin and authenticity of the video, while the attorney general has ordered an inquiry into whether the footage documents criminal offenses or constitutes an organized attempt to destabilize the country. The investigations are expected to assess potential violations of campaign finance laws, corruption statutes, and regulations governing charitable organizations.

The scandal has also revived scrutiny of the charity’s finances. According to a report published by the auditor general in November, donations to the Independent Social Support Body surged dramatically in 2023, reaching 2.3 million euros – a fivefold increase compared to previous years. The spike coincided with the year of President Christodoulides’s election. Donations remained unusually high in 2024, while the charity’s spending also rose sharply.

The auditor general’s report warned that several donors to the fund had ongoing financial relationships with the state, including contracts and regulatory dealings, creating a heightened risk of conflicts of interest. While no illegality was formally established, the report underscored the need for stronger safeguards and greater transparency to prevent the perception that public policy could be influenced through charitable contributions.

Efforts to increase transparency have so far faced legal obstacles. Last year, lawmakers attempted to introduce legislation requiring the disclosure of donors who contribute more than 5,000 euros to the charity. However, the Supreme Court struck down the measure on privacy grounds after it was challenged by the president. In response, the auditor general has urged that the charity voluntarily accept funds only from donors who consent to public disclosure above a defined threshold, arguing that transparency is essential to maintaining public trust.

Opposition parties have seized on the scandal to demand broader reforms. Several lawmakers have called for stricter campaign finance enforcement, clearer separation between charitable activity and political officeholders, and enhanced oversight mechanisms. Some have also questioned whether state-linked charities should be chaired by individuals with close familial ties to elected officials.

As Cyprus grapples with the fallout, the resignations of the first lady and a senior presidential aide mark a significant moment in the country’s political life. Whether the scandal leads to criminal charges, legislative reform, or lasting damage to public confidence remains to be seen. What is clear, however, is that the episode has exposed vulnerabilities in Cyprus’s political and financial oversight systems at a time when the country is seeking to project stability, credibility, and good governance on the European stage.

For now, the investigations continue, and the political consequences are still unfolding. The coming weeks are likely to prove decisive in determining whether this scandal becomes a turning point for reform-or another chapter in Cyprus’s long struggle with transparency and accountability in public life.

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