Euro millions stolen from those in need: Hungarian Integrity Authority exposes overpricing in EU-funded projects
Hungary’s Integrity Authority on Monday announced the close of a probe in which it uncovered “extreme” overpricing in two European Union-funded projects to provide food assistance to materially deprived people.
The probe showed a consortium led by Haller Kft overpriced staples in the food assistance by 70pc, or HUF 7.6bn (EUR 19m), while Kata-Mill Plusz Kft inflated prices in its contract by 37pc, or HUF 2.6bn (EUR 6.5m).
The authority said the overpricing resulted in the delivery of 2.3 million food assistance packages, instead of 3.7 million, to the needy.
“The outrage of the whole of society that the people involved in these abuses have profited from those who are most in need and vulnerable – the elderly and the poor – is justified. The network, which bears the names of two companies, has effectively stolen 10.2 billion forints from the poor. The case is a clear example of what you have often said in public: that the abuse of power and corruption harms precisely the most vulnerable in society. Unfortunately, this case will probably be one of many in which, by the time any real progress is made, the perpetrators and the stolen money will have disappeared without a trace, with virtually no consequences,”
Ferenc Biró, President of the Integrity Authority, commented on the outcome of the investigation, adding: “Given the appropriate powers, the Authority can investigate such cases in a timely and complete manner, follow through with these procedures, recover the stolen money and help bring the culprits to justice. This is why it is essential that the powers of the Authority are clarified as soon as possible.”
In total, the four SCIF-related projects under review received 31.2 billion forints in funding, 85 percent of which was EU funding. The projects concerned were implemented between 1 October 2016 and 31 December 2023.
The Integrity Authority will file criminal complaints in the matter.
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