Budapest Transport Company's Chief Executive Resigns

  • 13 Feb 2012 8:04 AM
Budapest Transport Company's Chief Executive Resigns
"BKV CEO Gyula Várszegi resigned on Friday with immediate effect, apparently over up to Ft 100 million bonuses paid to BKV staff last week. If such bonuses were paid, the public transport company’s leaders did not inform the city leadership, said Dávid Vitézy, head of the Budapest Transport Centre.

Várszegi told Magyar Nemzet that the city transferred Ft 15 billion as a loan and direct subsidy to BKV’s account in late January, in effect releasing the payment of bonuses due at the end of last year.

“We paid bonuses specified in contracts and gave the go-ahead again for the use of fuel cards for official cars for 23 senior executives,” he said.

Vitézy said Tarlós has ordered an inquiry into the BKV bonuses to be completed by the beginning of the week, which could entail personnel consequences.

Fidesz MP and Fifth District mayor Antal Rogán said in an interview with Saturday’s Magyar Nemzet that the government will not allow any insolvency problem to arise at BKV.

He said the cabinet has been generous with the capital in the past two years, as it wanted to allow it time to address the structural problems which the city leadership had inherited.

Rogán called the Ft 100 million bonuses unacceptable."

Source: Hungary Around the Clock

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