Former service villa of Hungary’s defence minister cost EUR 1 million more than previously estimated

Renovation work on a luxury service villa formerly used by Hungary’s current Defence Minister, Romulusz Ruszin-Szendi, cost around HUF 650 million (EUR 1.77 million) despite the property already being largely complete, according to contracts obtained after more than a year of legal proceedings.

Defence minister’s former service villa cost millions more than estimated

The documents, reported by 24.hu on Monday, detail 19 construction contracts relating to the Dunakeszi property, which the minister resided in. They reveal substantial cost increases compared with initial estimates, with some individual items allegedly priced at up to 20 times their estimated market value.

The Ministry of Defence’s company, HM EI Zrt., commissioned the work. An architectural firm had reportedly assessed the building as being 75–80 per cent complete, estimating that finishing it would cost approximately HUF 250 million (EUR 680,000). Instead, the documented completion costs reached around HUF 640 million (EUR 1.74 million), while the total additional spending was reported at approximately HUF 650 million.

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Millions spent on landscaping and construction

The contracts show that nearly HUF 500 million (EUR 1.36 million) was paid to contractors for construction work, including building services, electrical installations, roofing, terrace work and interior finishing. Material costs exceeded HUF 145 million (EUR 395,000). Among the largest individual items were HUF 39.6 million (almost EUR 108,000) for plants and HUF 35.5 million (EUR 96,700) for garden furnishings. The project also included HUF 25.6 million (almost EUR 70,000) for fence components and related materials, as well as HUF 17.3 million (more than EUR 47,000) for basalt panels.

One particularly striking example concerns the installation of glass-fibre mesh in the building’s exterior insulation. According to 24.hu, the agreed labour rate was HUF 38,790 (EUR 105.62) per square metre, excluding VAT, compared with an expert’s estimate of approximately HUF 1,600 (EUR 4.36) per square metre. The report said this item alone represented an alleged overpayment of HUF 18 million (EUR 49,000). The contracts do not indicate that Ruszin-Szendi personally directed the construction work. They were signed on behalf of the state by HM EI Zrt.’s chief executive or other company officials.

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Political controversy and unanswered questions

The property attracted public attention after minister Ruszin-Szendi, a former chief of the Hungarian Defence Staff, joined the opposition Tisza Party, which entered government in April and appointed him defence minister. The previous Fidesz government had highlighted the villa amid political disputes over luxury spending.

Hungary’s Government Control Office previously published a report identifying what it described as wasteful purchases for the property, including furnishings and equipment. That review did not examine the more expensive construction work now detailed in the contracts. A police investigation into suspected abuse of office was also reported to be ongoing following a complaint by former Fidesz MP Gyula Budai.

Defence minister Romulusz Ruszin-Szendi has previously said the ministry’s background institution handled the property’s purchase and management so it could serve as official accommodation for the chief of the defence staff. He said he was neither the buyer nor the owner. The newly disclosed contracts raise further questions about the cost of the project, but do not in themselves establish criminal wrongdoing.

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