Mayor Karácsony: Budapest Transport Company To Challenge Fine

  • 24 Jan 2020 7:44 AM
  • Hungary Matters
Mayor Karácsony: Budapest Transport Company To Challenge Fine
Budapest’s mayor, Gergely Karácsony, has defended his administration’s decision to scrap a contract for the use of advertising space on the capital’s public transport vehicles and amenities, and will challenge a large fine levied on Budapest’s public transport companies for reneging on contract.

Hungary’s Public Procurement Arbitration Board (KDB) fined Budapest public transport companies BKV and BKK a combined 115 million forints (EUR 343,000) for voiding a tender for a 2016 four-year contract with an estimated net value of 5.7 billion forints.

After the municipal elections last October, Karácsony decided to prohibit companies owned by the municipality from signing contracts on advertising space that span a period longer than a year. This decision entailed declaring the 2016 tender void.

Karácsony said on Facebook that under the 2016 deal struck by his Fidesz predecessor, BKV launched a public procurement contract for the company’s advertising space shortly before the October election, thereby tying its successor’s hands in the event Budapest residents voted out the Fidesz administration.

“That’s why I voided the tender. I realise this harms certain economic and political interests, but this serves the people of Budapest, and I insist on the latter,” the mayor said, adding that the scale of the fine was “striking and unusual” and he vowed to appeal it in court.


MTI Photo: Kovács Tamás

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this twice-daily newsletter covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI. Click the title above for more info, and to subscribe.

Explore More Reports

  • Indonesia & Hungary To Set Up USD 500 Million Joint Investment Fund

    Indonesia & Hungary To Set Up USD 500 Million Joint Investment Fund

    • 24 Jan 2020 7:40 AM

    Indonesia and Hungary will set up a 500 million dollar investment fund to facilitate Hungarian companies’ participation in the development of transport and water management infrastructure, Foreign Minister Péter Szijjártó said after talks with counterpart Retno Marsudi, other government members and business people.

  • Video: Putin Visits Budapest Today, Expect Traffic

    Video: Putin Visits Budapest Today, Expect Traffic

    • 30 Oct 2019 12:17 PM

    President of Russia Vladimir Putin will pay a working visit to Budapest at the invitation of Hungarian Prime Minister Viktor Orbán today. Warnings have been issued for potential traffic disruptions due to Putinʼs delegation, which will also include Foreign Minister Sergey Lavrov.