Hidden wealth of Hungarian government-connected circles exposed
Journalists of the investigative media outlet Direkt36 have uncovered that several official documents prove the ownership of a number of private equity funds by government-connected businessmen. The wealthy owners of these private equity funds, which hold vast fortunes, have so far managed to keep their secret.
The information obtained by investigative journalists has also been reported on the news portal Telex, which cooperates closely with Direkt36.
What is a private equity fund?
Private equity funds mean a type of investment vehicle that allows a select group of investors to grow their money while avoiding public regulations. An asset management firm manages the money on behalf of the investors, and while the information of the management firm is public, it is difficult to find out whose money is in the private equity fund. These types of funds exist in many countries, mainly for investment purposes. In Hungary, this type of investment has been increasingly utilised by a government-connected elite to secretly accumulate wealth, according to a new discovery of Direkt36.
Private equity funds invest in various sectors, such as hotels, real estate, restaurants, banks, industries and waste management.
Valuable state-owned properties and companies have also been transferred to private equity funds, ultimately enriching the wealth of unknown individuals,
they write.
Contradictory laws
There is a state database managed by the Hungarian tax authority (NAV), created in response to an EU requirement, which provides access to the beneficial ownership records of private equity funds. Direkt36 found that out of 119 private equity funds, only 37 had some kind of information on the beneficial owners. However, only 26 of them could be identified by name.
They add that it is not clear who should be considered a beneficial owner. That is because the relevant laws are contradictory, meaning that there can be different interpretations of who is the beneficial owner of a private equity fund.
The results
In the NAV system, the level of interest of the 26 persons with an ownership stake ranges from 39 to 100 percent. According to the findings of Direkt36, 17 of them are clearly close to the government, while another 5 are also
easily connected to government-related business circles.
The names of several well-known Hungarian billionaires were discovered during the search, including István Száraz, László Szíjj, Zsolt Hernádi, Gellért Jászai and Lőrinc Mészáros. These government-linked businessmen have between 78 and 100 per cent stakes in each of their private equity funds. Lőrinc Mészáros’ name appears most often in the register. The businessman
has a 100 per cent stake in nine private equity funds, and a further two belong to his corporate lawyer, József Tamás Kertész.
Mészáros is one of the richest Hungarians, currently ranked third on the latest Forbes billionaires list with an estimated wealth of HUF 436.5 billion (EUR 1.08 billion).
- Read also: Meet the richest Hungarians
The database’s end might be near
An EU directive from 2018 mandated that the identities of actual owners should be made publicly available. Based on this directive, registers of actual ownership were created throughout Europe, including in Hungary in 2021.
However, the Hungarian system may not be available for long as EU courts have ruled that it is not acceptable for anyone to know the identity of actual owners. Several EU countries have already discontinued their publicly available registers.
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Source: telex.hu, forbes.hu
Orban is one of the wealthiest people in the world, he has been robbing Hungary for over 12 years. He is behind all of those funds!
So now we know that Telex and Direkt36 will be the next media outlets to disappear…
@Mario:
Yes, yes, if you’re a thorn in someone’s side, you will be removed (just like all the others before them) one way or another. There is only one line to tow in this country.
see the richest corrupt people, ex communist who destroyed peoples lives. They are always shown as normal guys. plus in Hungary foreign companies and foreign businessmanhad preferentisl treatmentb o the detriment of hungarian businessmen. 3 richest ex commies actions did not hit thr headlines.. I am glad non commies now get wealty too..current commies cant have all the power like duting socialiasm. The ubermensch Socialism is over.
@Helga:
“The ubermensch Socilalism is over” – you wish! Sadly, no.
Rotten to CORE – is the ABUSE and corruption, exercised and practiced through Victor Orban and the Fidesz Political Party in Hungary.
Hungarians – we have continued to let these types of un-ethical practices grow over the past nearing 13 years, commenced, the first time around as Prime Minister – Orban, but un-controllable and exploited – undertaken, in an ABUSIVE format of sheer arrogance and disrespect for the Hungarian citizens, in its use and process over the past nearing 13 years – that FACTUALLY – places Hungary in a position, that the DIVIDE of the Rich against the Poor – is HUMONGOUS and Worsening.
Putin been an EDUCATOR to Orban of the undertakings needed to gain personal wealth?
Millions literally MILLIONS growing in number of Hungarians, that through the DECAY of life quality – we are living in throughout Hungary, economically & financially in WRECKAGE – the widening of the Social In-equality & Social Equality gap in the population of Hungary – 9.5 million of us, an ageing society, that STILL, been the FACT for a decade, greater numbers of Hungarians “pass on” in a year than new “little ones” are born, the broadsheet DESTRUCTION – pain, damage, stress – caused on the life of millions of Hungarians, from “all stations in life” – the EFFECTS inflicted directly – from the Orban Government & Fidesz Political Party – Appalling.
Hungarians – before the very eyes of, they have “signed off” for it to occur, the ERADICATION, the stripping away, removal from Hungary, to be Governed as a DEMOCRACY.
The FUTURE – what FUTURE is the QUESTION?
If Hungary – is expelled or decides to leave the Family of European Country’s – that same could be said of NATO, – on WHAT and HOW – is Hungary going to survive?
Who going “Full bore” under a Dictatorship – fully aligned to Russia & China – are they going to be the INCREASED Bankers for the FUTURE of Hungary?
WHO – from the outside DEMOCRATIC world – who would INVEST in Hungary?
Education, Hospitals – the ‘needs” of a society – in ALL categories under Public Health like Dental, Optical – THINK what this list is MADE up of, what comes under it, and DON”T forget, still – after near on 13 years in Government by Orban and his Government, categories just THOSE – just those on a list that if put together, would be Mindboggling or SCARY – are ALL still massively under FUNDED and being operated under a 19th century – aged and TIRED run down systems & processes, and FACILITIES in numerous cases that are LITERALLY falling, crumbling down.
FUNDING is just ONE of the MASS questions Hungarians need to THINK – in the FUTURE of Hungary.
Settle back into SIMILARITIES of pre 1989 in Hungary as its HAPPENING all around us.
Victor Orban taking to the podium Hero’s Square August 1989 – his VISION – his Goals – his no doubt Political asperations – the FUTURE of HUNGARY – in the words of Orban – the FREEDOM of Hungary moving forward and the MUST of the FUTURE of Hungary – being a DEMOCRACY.
Its there for ALL Hungarians u-tube and other – to hear Victor Orban 1989 version – his SPEECH – to compare the CATACYLSMIC Mess – under his leadership – his political and economic ideas and philosophy – and WHAT he – to MILLIONS of Hungarians – Hungary, what he has GIVEN orchestrated by his DOINGS in 2023.