By the deadline of Aug 31, 16 foundations not operating universities were scrapped, abolishing a murky system and an important obstruction to Hungary accessing the European Union resources, the ministry said.

The foundations were set up under the previous government and "have removed significant amounts of state assets and the relevant decision-making rights from state control," the statement said.

The foundations enjoyed long-term independence while disposing over enormous amounts of public funds, the ministry said.

The Tisza government earlier decided to phase out the KEKVA model, with non-educational foundations ceasing operations by Aug 31, while those supporting universities will be dissolved by August 1, 2027.

Meanwhile, several key figures from the previous government held leadership positions in the now-defunct foundations, the statement said.

The Mathias Corvinus Collegium (MCC) Foundation’s board of trustees was led by Balazs Orban, the former prime minister’s political director, while the board of the Foundation for the Land of Future Generations was chaired by Janos Lazar, the former minister of construction and transport.

The Blue Planet Climate Protection Foundation was headed by Janos Ader, the former president, and the Foundation for Hungarian Culture was led by Szilard Demeter, a cultural politician.

"This created a structure in which significant public assets continued to be controlled by previously appointed bodies even after a change in government. This system has now come to an end with the close of August," the statement said.

The assets transferring to the state include corporate stakes worth over 845 billion forints (EUR 2.3bn), nearly 162 billion forints in cash, 89 billion forints in securities and almost 88 billion forints in real estate, the ministry said.

The MCC Foundation managed the largest share of these assets, with a book value of nearly 575 billion forints. The MOL-New Europe Foundation’s assets exceed 262 billion forints, while the Foundation for the Land of Future Generations holds nearly 108 billion forints.

Together, these three foundations managed nearly three-quarters of the assets transferring back to the state, it said.

The ministry emphasised that the changes do not endanger genuine public duties. Essential programmes and services will continue to operate, while unnecessary parallel structures and unjustified organisational frameworks can be eliminated.

With the assets returning to the state, it will once again be clear who is responsible for them, who decides on their use and how they are allocated, they added.

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

Photo: Pixabay

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