"The state gave money to a company so that the company can use it to buy state assets," Istvan Kapitany said, summarising the reason for the comprehensive review of the network of 4iG and the government.

The deals under scrutiny include state orders, as well as the financing, guarantees and transactions involving Antenna Hungaria, the financing of the state purchase of Vodafone, the framework agreement with the defence ministry worth over 1.3 trillion forints (EUR 3.3bn) signed weeks before the election, the satellite programme worth over 850 billion forints, and the transfers of defence industry assets along with related state financial movements.

Four ministries are involved in the work, which may concern several trillion forints of public money, the minister added.

"We are not the ones judging," Kapitany said. The government’s task is to find and hand over all documents to the authorities, he said. Determining guilt is the responsibility of the investigative authorities, the prosecution and the courts, he added.

Lawful, honest decisions which were to the benefit of Hungarians would also be made public, he said. However, where irregularities or suspicions of criminal offences arise, reports will be filed, and the money and assets of Hungarians will be recovered.

"After 16 years, the Hungarian state is finally protecting the interests of Hungarians, not those of a few selected business circles. The assets of the Hungarian state belong to the Hungarian people," Kapitany said.

Earlier: 4iG Probe Over Huge IT Deals Paid for by Taxpayers in Hungary

The government has ordered a comprehensive probe of 4iG's contracts with the state, Prime Minister Peter Magyar said in a post on Facebook.

Magyar said four ministries would be involved with the probe of 4iG, which he called the "mothership" of "NER" companies, using a Hungarian acronym referring to businesses that benefited from big state contracts under the former Fidesz-KDNP government.

He said 4iG had won state IT contracts "in the billions" in the 2010s, before "switching into a much higher gear" from 2022, with the issue of HUF 389bn in bonds in the framework of a National Bank of Hungary (NBH) programme and a more than HUF 400bn capital raise in Antenna Hungaria after which 4iG acquired a majority stake in the telco.

In 2023, Magyar added, Antenna Hungaria and the state of Hungary acquired Vodafone Magyarorszag in a deal worth HUF 660bn, with the state-owned Hungarian Development Bank (MFB) providing the financing for 4iG's stake.

Magyar also noted 4iG's acquisition of the state's majority stake in automotive industry company Raba and 4iG's subsequent transfer of a stake in the business to a foreign company.

He added that 4iG had been the general contractor for an "overpriced" programme to supply seniors with remote medical alert bracelets.

"We're talking about several thousand billion forints of taxpayer money. The Hungarian people have a right to know what happened to their money," Magyar said, adding that the results of the probe would be published.

If the probe raises any suspicion of graft, Magyar said reports would be filed with the relevant authorities. He warned against any efforts to strip assets from the group.

4iG to cooperate with govt on contracts probe

4iG will cooperate with the government on a probe of contracts it signed earlier with the state, the group said.

"We are convinced that our cooperation with the state of Hungary is undertaken in a framework that complies with regulations and is fair and advantageous for Hungarians," 4iG said in a statement.

"To protect the interests of our shareholders, we believe that a fact-based probe, conducted in a professional manner, is indispensable. In the course of that probe, we will provide all necessary documents and information at our disposal to allow an objective assessment of the facts," it added.

The government ordered the probe of the state contracts with 4iG in a resolution published on Friday.

In a post on Facebook on Monday, Prime Minister Peter Magyar called 4iG the "mothership" of "NER" companies, using a Hungarian acronym referring to businesses that benefited from big state contracts under the former Fidesz-KDNP government. He detailed a number of transactions, financed with state credit, that boosted 4iG's balance sheet in the period after 2022.

"We're talking about several thousand billion forints of taxpayer money. The Hungarian people have a right to know what happened to their money," Magyar said, adding that the results of the probe would be published.

The price of 4iG shares fell 14.52pc to HUF 1,590 on Monday. The shares traded at HUF 1,570 around 10:00 in the morning on Tuesday, down 1.26pc.


Source: MTI – Hungary’s national news agency since 1881.

Photo: Pixabay

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