HUF 17 Billion Scandal: Why Baan Resigned from National Cultural Fund
- 4 May 2026 12:54 PM
The resignation was first reported by Index.hu, which obtained a letter from Baan.
In the letter, Baan stated that Balazs Hanko, the outgoing culture and innovation minister, had acknowledged in writing that numerous high-value grants did not align with the NKA's core objectives or spirit.
Baan wrote that at the NKA supervisory board meeting on April 23, members reviewed reports on the work of the 2025 professional review panels that evaluate NKA applications.
"All review panels were represented -- except the Temporary College for Outstanding Cultural Programmes (KKPIK), which in its written annual report highlighted only two programme groups: those related to the Jokai Memorial Year and the Marai Anniversary," he noted.
"Subsequent press reports revealed that the KKPIK's report failed to cover the full spectrum of its funding decisions, thus providing the board with a seriously incomplete and misleading picture of its annual work," Baan said.
He added that on April 24, he had formally requested the NKA's vice president to submit a proposal for the board to retroactively withdraw approval of the KKPIK's report and demand a supplementary account by April 27 at noon. The vice president had since initiated the vote.
Baan stressed that the list of KKPIK-approved grants, including several high-value awards inconsistent with the NKA's goals, had since been published on the NKA's website.
"Although the KKPIK made all its decisions entirely independently of the NKA board -- and the board was not even informed of them -- the resulting situation means I can no longer assume responsibility for the board's work. Therefore, I am resigning from my board membership with immediate effect," he wrote.
As previously reported by Index.hu, Balazs Bus, the NKA's vice president, had already resigned on April 15, with his resignation taking effect 30 days later, as stipulated by law.
At the extraordinary board meeting, it was also decided that the KKPIK would require interim professional and financial reports from all grantees it had funded in 2025–2026.
Several public figures have commented on the scandal, including Istvan Marta, Erkel Ferenc Prize-winning composer and founder of the Valley of the Arts, who said the Hungarian Festival Association was shocked by the events. Balazs Weyer, president of Music Hungary, stated: "This is not an NKA issue -- it's a Hanko issue."
Two further members resign from National Cultural Fund supervisory board over funding scandal
National Theatre Director-General Attila Vidnyanszky and Director-General of the House of Traditions Miklos Both have also resigned from the National Cultural Fund's (NKA) supervisory board following a 17 billion forint funding scandal, after the resignation of Laszlo Baan, director-general of the Museum of Fine Arts, earlier this week.
Vidnyanyszky’s resignation was made public on Saturday, he confirmed to commercial news channel ATV that he had stepped down from the committee several days ago.
Both said in an interview with Valasz Online published on Saturday that the committee had not received comprehensive information about the controversial funding scheme, and that the transparency of decision-making and disclosure had been compromised.
In a Facebook post published on Friday, Zoltan Tarr, the incoming minister of culture, promised in connection with the matter that the entire NKA network would be investigated.
"I am launching an immediate and comprehensive investigation into all suspicious grants awarded in recent times without professional oversight. We want to see where the money went and what political or campaign goals it served behind the scenes," he said.
He also said that that this was no longer merely a matter of outgoing Minister Balazs Hanko bypassing the NKA’s professional boards, which, he added, had largely been reshaped in the image of the ruling Fidesz-KDNP.
"We are becoming increasingly certain that the system of cultural grants has degenerated into a tool of political patronage and covert campaign financing, especially in the run-up to elections. They bought political loyalty with public funds," he stated.
"The task for the coming period will be to fundamentally overhaul this corrupt system," he said, adding that accountability is inevitable: anyone who used funds intended for Hungarian culture and the arts to further their own or their party’s political interests must be held accountable.
If the investigation finds embezzlement or abuse of power, legal consequences will follow. The era of a Hungary without consequences is over, he said.
MTI Stock Photo
Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.
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