Cyprus’s public audit oversight board has confirmed that it is taking action following allegations that Deloitte Cyprus helped conceal billions of dollars in assets belonging to Russian billionaire Roman Abramovich.
According to a 15 October report in the Cyprus Mail, the Cyprus Public Audit Oversight Board (Adeelep) said it was taking all necessary actions within its statutory responsibilities. The response follows an investigation by the Bureau of Investigative Journalism, working with BBC Panorama, the Guardian and the Organized Crime and Corruption Reporting Project.
The investigation alleged that Deloitte Cyprus and corporate-services provider MeritServus helped prepare more than 1,000 backdated corporate records involving over 100 companies associated with Roman Abramovich. According to the journalists, documents were created years after the transactions they purported to record, making billions of dollars in assets appear to belong to different offshore companies, potentially concealing their ownership and reducing tax liabilities.
Among the arrangements examined were the alleged retrospective transfer of approximately $2 billion from the accounts of a Cyprus company to a British Virgin Islands entity, and the reassignment of more than $10 billion in assets to another offshore company. The journalists also alleged that Deloitte audited financial statements incorporating some of the disputed transactions, raising questions about its role in both preparing and independently verifying the records.
The investigation also drew attention to Deloitte’s longstanding relationship with MeritServus, which became a separate business in 2005 under former Deloitte Cyprus chairman Demetris Ioannides. Despite the separation, professional and corporate ties continued for years.
Deloitte maintains that it complied with applicable laws, while Abramovich and his associates deny knowingly participating in document falsification, concealment of assets or tax evasion. The allegations have not been established as criminal wrongdoing by a court.
Big4News has published a detailed timeline of the Deloitte–MeritServus–Abramovich allegations, tracing the relationships, transactions and documentary evidence underlying the investigation.
The Regulator’s Previous Deloitte Connection
The Cyprus Mail also reported that Adeelep’s general manager, Panos Prodromitis, previously worked at Deloitte Cyprus until 2009, overlapping with part of the period of alleged misconduct.
Prodromitis said he joined Deloitte’s Nicosia office in 2003 and became a senior manager in 2008. He assured the newspaper that “any conflict of interest will be declared and mitigated”.
Under Cyprus’s audit legislation, Adeelep has powers that include obtaining documents, inspecting audit firms, conducting investigations and referring matters for criminal prosecution.
Deloitte Cyprus told the Cyprus Mail that it acts in accordance with applicable law and declined to comment on the specific allegations, citing the age of the documents.
What Happens Next?
The regulator’s acknowledgement marks a development in the aftermath of the investigation, but the nature and extent of its response remain unclear.
Adeelep has not disclosed whether it has opened a formal investigation, requested documents or initiated disciplinary proceedings. Its response therefore does not establish that Deloitte has breached any professional or legal obligations.
For further background, read Big4News’s complete Deloitte, MeritServus and Abramovich scandal timeline.
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About Claudine Cassar
I’m a corporate anthropologist and former Deloitte equity partner. I sold my technology business to Deloitte in 2016 and led the Malta Consulting team for five years. I am the founder and editor of Big4News, which provides independent, clear analysis of PwC, Deloitte, EY, and KPMG — free from corporate spin.
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