Government politicians pilfering EU funds, say opposition parties

Budapest (MTI) – European Union funds have been criminally pilfered in Hungary with the participation of government politicians, the green opposition LMP alleged on Thursday.

This is the biggest crime in contemporary Hungarian history, LMP’s anti-corruption spokesman told the press. He accused the chancellery and the human resources ministry of pre-selecting companies that manage projects before tenders are even invited, involving the large part of 12 billion forints (EUR 38m).

The “criminal gang’s other tentacle” is companies that lobby local councils, Hadhazy said.

He handed the transcript to the press of an alleged recording of the mayor of Szekszard, in southern Hungary, and his current advisor, a former Fidesz lawmaker. Hadhazy said that during the 2012 meeting of city representatives at which he was personally present, the mayor explained the workings of the “criminal gang”. Accordingly, when it came to distributing EU funds, a company offered the local council to organise all aspects of the project, including paperwork and the tender. In exchange it would be appointed as the main contractor. He cited a project in Szekszard to expand a kindergarten which was expected to cost 66 million forints but in the end the local council paid 130 million forints.

Hadhazy promised that LMP would present similar cases every week from now on, adding there are enough cases to cover the next six months.

Opposition Democratic Coalition (DK) deputy leader Laszlo Varju, at another press conference on Thursday, insisted that people associated with ruling Fidesz were stealing EU funds intended to reveal corruption. He referred to an investigation by the EU’s Anti-Fraud Office (OLAF), which he said showed that money received by Hungary for the fight against corruption had been stolen. One of the company groups investigated by OLAF was the Quality Control Consortium, whose members included the law firm of a former deputy state secretary. Varju said Prime Minister Viktor Orban had betrayed Hungarians because “a deputy state secretary from Fidesz could steal money received for the fight against corruption and was not punished for it.”

Fidesz said in response that those who speak about corruption today used to run the most corrupt government of all time and had been responsible for stealing national assets as well as EU funds. Hungary has one of the most transparent systems for distributing EU funds and its procurements law is the strictest in Europe, the statement said. Disappointed left-wing politicians are now lobbying in Brussels to get EU funding for Hungary suspended because the taps have been closed for them, the statement added.

The Prime Minister’s Office said that if Hadhazy had indeed known about cases of corruption and failed to report them to the police then he was an accomplice in crime.

“He went against his oath as a lawmaker and did not keep the public interest in sight, he did not report the case to the police” but kept silent about it for four years, the statement said.

LMP will only “act in a correct and responsible manner if instead of giving press conferences, it immediately reports to the police every case in which the suspicion of corruption arises”, the statement added. If Hadhazy fails to do this, he will prove that his remarks are merely political manoeuvering, the PM’s Office said.

In the new system of tenders in Hungary, state bidders are only allowed to rely on their own resources in managing the tender procedure, without using external help. In the case of market bidders, the amount allowed to be spent on project management is maximum 2.5 percent.

“The Prime Minister’s Office has closed every loophole for tricksters with bids,” the statement said.

Source: http://mtva.hu/hu/hungary-matters