The report examines Hungarian public procurement data in the period between 2005 and 2020. Data from 248,404 contracts were used for the analysis, which focuses on information about the corruption risks, the intensity of competition, and political favouritism.
The results show that in the first four months of 2020, corruption risks in Hungarian public procurement reached the highest level since 2005: by April 30, the share of contracts without competition was 41 percent. The control of corruption risks stabilized at a low level in 2018 and 2019.
The strength of intensity of competition in EU-funded projects has been higher than in tenders financed by Hungarian taxpayers since 2016, one year after when the first discovery of anomalies in EU-funded public tenders and subsequent OLAF investigations happened.
The share of public procurements won by crony companies within the total public procurement value has increased significantly since 2011.
The risk of corruption in contracts won by these companies before the parliamentary elections are significantly reduced. This appears clearly in the period between May 2017 and August 2018: at that time, there were hardly any tenders won by crony companies without competition.
However, this can also be seen in the period between September and December 2013. Subsequently, after the Fidesz won the parliamentary elections, the crony companies began to win again with higher corruption risks. During COVID-19 pandemic the share of non-competitive contracts within contracts won by crony companies rose from an otherwise extremely high level.
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Source: CRCB Press Release