Válasz Online: All-time greatest property scam in Hungary involving Orbán cabinet and government-close businessmen unveiled
Válasz Online reported a week ago on the greatest property scam in Hungary in the last 35 years. However, learning more details, they said it was the biggest of all time. In a nutshell, the Hungarian government will buy office buildings for HUF 600 billion (EUR 1.52 billion) from government-close businessmen whose companies were the constructors of the buildings before. However, their market value is at least 40% less.
In an international comparison, the overpricing can reach 70%, Válasz Online wrote on 16 August. An approximate estimate of the overpricing is 40%. Who are the winners of the business if not the taxpayers who pay for it?
355,000 sqm of office building for EUR 1.52 billion
According to Válasz Online, the Hungarian government bought office buildings in three Budapest venues. They paid HUF 244 billion (EUR 620 million) for a Bosnyák Square office building complex. The Hungarian taxpayers will pay for another one at the Kopaszi Dam (EUR 650 million). Finally, the Orbán cabinet is paying HUF 100 billion (EUR 250 million) for a third office building at the Ajtósi Dürer sor, close to Budapest’s City Park.
Visual plan of the Kopaszi Dam. Source: Facebook/BudaPart – Kopaszi-gát
All contracts were administered by Judit Pete, a Hungarian lawyer, who took the state assignments, and the law firm of Minister Márton Nagy’s sibling.
The Hungarian government decided about the transactions in secret. There were no public procurements or competition. One of the questions that arise is: what does the Hungarian state need 355 thousand sqm of office buildings for and why it is worth buying instead of renting it? Válasz Online suggests the purchase was in the interest of the Tiborcz-circle (the son-in-law of PM Orbán) instead of the Hungarian taxpayers.
A purchase on which taxpayers lose money
Válasz Online calculated the market value of the office buildings by asking experts and comparing the transaction costs with international examples. The result was devastating.
The overpricing of office buildings is between 40 and 70%, so it is probably the all-time biggest property scam in Hungary. Válasz Online presumes nobody ever earned this much money with only one idea. The essence is that you should convince the state to buy expensive office buildings regardless of whether they need them. Provided the government is headed by your father-in-law, such persuasions become possible.
Moreover, Tiborcz-circle companies constructed the office buildings (businessmen Attila Balázs and István Garancsi and their associates). That revenue complemented their profit.
Former PM Gyurcsány’s DK turns to police
The opposition Democratic Coalition (DK) is filing a police report alleging embezzlement regarding the government’s decision to buy an office building for HUF 600 billion (EUR 1.5 billion), the party’s deputy group leader said in Budapest on Wednesday.
Gergely Arató told an online press conference that it was “outrageous that at a time of a housing crisis, the government is spending on its own housing rather than that of young people and families.” That sum would have been enough to build 15,000 apartments, he said.
Photo: FB/Ferenc Gyurcsány
Citing experts, Arató insisted the offices were overpriced “by at least 40 percent”.
Read also:
- Lake Balaton overrun with luxury properties and controversial projects – read more HERE
- Orbán family associate develops massive new residential project in Budapest
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8 Comments
The Real Person!
The Real Person!
Vote for Fidesz again in 2026 if you like giving your tax money to the pockets of Orban’s family. Hungarians are the biggest bunch of suckers in Europe.
The Real Person!
The Real Person!
Well, another corruption case, but yeah, lets use the same demagogia like Putin “protecting the country of evil forces” From the most recent countries that joint to the EU this is by far the one that has less improved.
The Real Person!
The Real Person!
It is overpriced because this money goes back to the Viktator. I am sure he has a few bank accounts in places like the Kayman Islands…
The Real Person!
The Real Person!
There are plenty of buildings owned by the government. Some of them are very nice and falling apart. Some of them selling to oligarchs for little money to build hotels. I don’t understand the need to buy more office space, specially so expensive.
The Real Person!
The Real Person!
Firstly, these are just suspicions and allegations, which need to be, and will be, investigated. The usual suspects, predictably, can’t wait to jump at any opportunity to rant against Orban. I, for one, do not believe anybody in the government would be so dumb as to actually try to pull something like this off and think they’ll get away with it.
Secondly, under “eminent domain” owners of assets are often paid amounts that exceed the market value of those assets. It happens in “flawless” “democracies” such as the U.S., Britain, Germany, France (especially!), etc. all the time.
Third, the socialists expressing concern about waste of taxpayers’ money is just… – comedy gold!
The Real Person!
The Real Person!
Hungarians – we have been FAILED.
Hungarians – we have been Raped and Pillaged.
Hungarians – we have been Scuttled.
Hungarians – we must in take the RESPONSIBILITY for allowing our country to SINK to the depths of the Financial & Economic CHAOS we have REACHED.
Victor Mihaly. Orban – must NEVER be APPEASED.
Hungarians – we are seeing, that over the course of 15 years, the name Orban, before our own eyes, what he has been creating, developing his role, lining his own pocket, those who SUPPORT him, from Family right through the “tier(s)” of his Political and PRIVATE Life.
Hungarians – we HAVE been FAILED.
The Real Person!
The Real Person!
I am sure government lawyers made sure everything is perfectly legal according to Hungarian laws and decrees. There will be some special national interest why the government had to make these transactions with 40 – 70 % over the market value.
Paying such extra for office space is nonsense as the administrative office work is moving more and more towards remote work. In real democracies – like U.S., Britain, Germany, France – this kind of spending of taxpayers’ money would create a huge public outcry.
The Real Person!
The Real Person!
Hungarians just continue to display in there character, that in the words of the 42nd elected President of the United States of America – William Jefferson. Clinton – that the practice, the “embracement” of DEMOCRACY, by Hungary, it’s NEGATIVITY, is through there in-ability of adapting to it.
Hungarians find it just to Hard – Difficult.
Clinton is right, but it’s DEEPER than that as it’s INGRAINED through History – in the DNA of Hungarians, living under Governments, like 1945-1989 – that LIFE, there LIVES, are to be LIVED by the way, the FORMAT and formulas practices – Policies of the Governments of the day and time.
Hungarians in the CORE of there Education system, over generations/decades from Kindergarten, to Junior School, to Higher Education, then onto University, or “places” of Higher Education – there ABILITY to LOOK broadly, expansionary, visionary, imaginary, creatively – STARVED – doesn’t HAPPEN.
My law students in areas of law of my speciality – over-all take a “Silence” code, that exhibits they are “LOCKED” into a process part of an EDUCATION system, from kindergarten on, in there home environments, especially those in contact with even live with there Grand-Parents, that to ask questions, to “challenge” answers and explanations – to request clearer EXPLANATION of matters – to openly with respect DISAGREE – just doesn’t HAPPEN.
It’s like a YOKE around them, that to FREE them-selves – not in there BAPTISM.
Education – I, as a Professor at Law, I EDUCATE to students the NEED of them to THINK.
The need to communicate express them-selves – not to be LOCKED into a mentality of being a “closed up” individual but EXPRESSIVE not aloof – with pre evaluation, time and place – express communicate YOUR-SELF.
Hungarian’s suffer the FATE, in there DNA over time, just being receivers, taking in the word, accepting the word and never foretake in opposing nor QUESTIONING the Word.
The “YOKE” – its a CHOKER in the conduct of there lives, not just of my students, even the academic staff of my responsibility – of my Faculty, it’s PRESENT.
I “experimented” – knew before hand what I would mark.
I entered the lecture room – students 26 of stood, thanked them ask them to sit at there seats that facilitated writing attachment, and of course Lap Tops.
I introduced :
The subject matter we discussed at my last class/lecture 4 days ago, these 26 papers, that ask the same QUESTION – over the course of the next 50 minutes I request you WRITE an answer.
The papers passed out to the 26 students.
No questioning nor “shock horror” expressions – they read the QUESTION and proceeded in WRITING not on a Lap Top, but in personal hand writing – there answers.
Bell rung – they proceeded on leaving the lecture room, hand me, there Papers – answering my QUESTION.
I mark HARD – and the papers, the answer explanation(s) – quality of THINKING through a PROCESS then COMMUNICATING an answer, giving a Explanation in Writing, the 26 students, accepted through there Senior School RESULTS to study law, my “group” mark, a “generous” – 6 out of 10.
If I asked you to read – Harper Lees rightly masterful acclaimed novel titled : “To Kill a Mocking Bird” – and on finishing it’s read, and when read, to please inform me, then when you did inform me, I said, that over the course of the next hour, I would like you to write WHAT you got out of the novel’s read – what was it’s story, it’s MESSAGE ?
Hour later, you returned to my Dean’s Room, and handed me your paper, hand written in response to my question.
I thanked you noting your paper was over 500 words of RESPONCE.
I then asked you, in your response paper, have you mentioned – Patience & Compassion ?
You reply NO.
I reply, if on return of this paper to me, if ALL that was written on it was that the message of the novel, is the NEED to practice – Patience and Compassion, I would have “marked” you – A plus.
Often, very, very often in life simplicity of word usage the shortness of words whether it be in Legal environments or “other” – precise through THINKING thinking – word usage is a MASSIVE advantage to COMMUNICATE – get your OPINION, understanding – HEARD.
Education – it MUST be PROMOTED to make students – THINK – Think and to communicate there THINKING.
Education – it OPENS Mirrors and Windows in Life – in the creation of OPPORTUNITIES.