A former Socialist (MSZP) deputy mayor of Budapest’s Óbuda district has delivered explosive testimony alleging that politicians from both Fidesz and the Socialist Party operated a long-running cross-party corruption network, sharing kickbacks from public procurement contracts for nearly two decades.
The allegations, published by Telex and based on witness statements given to prosecutors, describe one of the most significant claims of institutionalised cross-party corruption to emerge in Hungary in recent years.
Former deputy mayor becomes key witness
The central figure is former MSZP deputy mayor Gergő Czeglédy, who was arrested in 2024 on corruption charges and spent nine months in custody. As part of a cooperation agreement with prosecutors, he gave detailed testimony describing what he alleged was a sophisticated corruption system involving politicians from both the left and the right.
According to his statement, the arrangement began during the Fidesz administration of former Óbuda mayor Balázs Bús, when then-Fidesz deputy mayor Péter Puskás allegedly approached him seeking companies that would return part of their profits in exchange for municipal contracts.
Gergő Czeglédy:
Czeglédy admitted creating a company called KBT Kft., officially registered under a front person but secretly controlled by him, which allegedly became a subcontractor on municipal maintenance projects.
“The agreement was that the dividends taken from the company would be split equally between Péter Puskás and myself,” Czeglédy told prosecutors, according to the published testimony.
He claimed the company carried out genuine work but also generated substantial profits that were later shared between the two politicians.
Alleged corruption survived change of political power
Perhaps the most striking allegation is that the system allegedly continued unchanged even after the 2019 local elections, when the opposition defeated Fidesz and László Kiss became mayor of Óbuda.
According to prosecutors, before 2019, the alleged kickbacks were divided with 70% going to the Fidesz side and 30% to the Socialists. After the change in administration, those proportions allegedly reversed, with the Socialist side receiving 70% and Fidesz 30%.
Czeglédy went even further in his testimony, claiming that local Fidesz and MSZP politicians had reached an understanding as early as 2006 to divide corruption proceeds while avoiding scrutiny of each other’s sensitive municipal affairs.
Public contracts allegedly tailored to favour bidders
The investigation centres on contracts awarded to Pannon Park Forest Kft., which repeatedly won large municipal tenders worth billions of forints for park maintenance and city management between 2013 and 2023.
According to testimony from the company’s owner, identified only as Zsolt Z., procurement criteria were allegedly drafted to favour a narrow group of companies. He claimed he suggested technical requirements that only a handful of bidders could satisfy, effectively ensuring victory.
He also alleged that contract prices included an additional 8–10% specifically intended to finance kickback payments. The KBT company allegedly received around 30% of the subcontracted work despite having almost no employees, instead outsourcing much of the work while earning substantial profits.
Company remained highly profitable
Financial records cited by Telex show that KBT generated revenue of around HUF 1 billion annually in 2022 and 2023, despite employing only two people for most of that period. In 2024, revenue reportedly rose to HUF 2.78 billion (EUR 7.9 million). In June this year, after years of being officially owned by others, Czeglédy formally transferred the company into his own name.
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Key figures deny wrongdoing
Current Óbuda mayor László Kiss has denied knowing about the alleged corruption or the KBT company before the investigation became public. He has acknowledged that Czeglédy’s claim of secretly controlling the company appears credible but insists he had no knowledge of its operations.
Former mayor Balázs Bús, who is currently in custody in a separate case, has also denied any involvement in corruption, stating he neither knew the company nor benefited from its activities.
Former deputy mayor Péter Puskás, who was arrested in June but later released, has not publicly admitted the allegations. According to the prosecution, the reasons for his detention ceased to exist, while Hungarian media reports suggest he may also have cooperated with investigators, although this has not been officially confirmed.
Péter Puskás:
Investigation continues
The prosecution is continuing its investigation into the alleged corruption network, including whether the claimed political agreement between Fidesz and MSZP existed and how long it may have operated. At this stage, many of the most serious allegations originate from witness testimony given by cooperating suspects. Several of the politicians involved deny wrongdoing, and no final court judgment has yet been delivered.
PM Magyar reacts: Fidesz and MSZP plundered Hungary in a 70-30 split
Fidesz and the MSZP have plundered the country in a 70-30 split, the prime minister wrote on his Facebook page on Monday.
“The corruption scandal involving the grand coalition in Budapest illustrates on a small scale how Fidesz and the MSZP have divided up—or stolen—the country in a 70:30 ratio over the past 20 years,” Péter Magyar stated.
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