Hungarian Government Commissioner Outlines "Mafia-Like" Contracts

  • 16 Sep 2010 12:01 PM
Hungarian Government Commissioner Outlines "Mafia-Like" Contracts
"The hundreds of consulting contracts that budget-funded bodies and state-owned companies concluded with private firms in 2002-10 show "octopus-like" intertwining, government commissioner Ferenc Papcsák told reporters on Tuesday, alluding to an Italian television show about the Mafia.

Papcsák said the system could not have been devised without political and governmental authorisation.

He said contracts signed with 12 companies, most of them consultants, are the object of inquiry. These companies obtained a gross Ft 12 billion via 636 contracts of which Ft 9 billion was spent on commission and advisory services.

Nearly Ft 8 billion was divided between Telkes Csoport, the law firm IFUA Horváth & Partners, the Develor consultancy and the Deloitte consultancy. The common feature of the contracts, Papcsák said, was unduly high remuneration, absence of documentation regarding performance and the repeated ordering of and paying for the same assignment.

Péter Oszkó was president and CEO of Deloitte's Hungary office from 2007 until his appointment as finance minister in 2009, Magyar Hírlap observes.

Papcsák said National Bank governor András Simor signed a contract for Deloitte regarding advice on preparing an electronic road toll system. Oszkó signed a contract, also on behalf of Deloitte, to advise the State Asset Manager on the privatisation of Malév.

More specifically, Papcsák said a ministry has filed a report on suspicion of misuse of funds at Magyar Közlönykiadó, publisher of the official gazette. It was established during the inquiry that the chief executive at the time, László Kodela, signed various contracts worth Ft 36.5 million in connection with a property transaction worth hundreds of millions of forints in Kehidakustány, Zala county, contrary to decisions by the company's owners.

The Socialist Party said in a statement that instead of demanding action from prosecutors and police in cases that cannot be proven, Papcsák should hold a press briefing about his own affairs, then visit the nearest police station and report himself."

Source: Hungary Around the Clock.

This news item is one of many published daily by HATC, a premier subscription news service which distributes English-language info about Hungary via email or fax. For a free trial of HATC follow this link and click on 'Free Trial Subscription'.

  • How does this content make you feel?