Hungary investigates business dealings of Orbán's father's company
Budapest police have opened an investigation into a company owned by former Hungarian Prime Minister Viktor Orbán's father over suspected abuse of office, after reports it sold overpriced materials for a state-funded highway expansion. The case follows disclosures by journalists and an opposition politician about allegedly inflated prices.
The Budapest Metropolitan Police Headquarters has launched an investigation into Dolomit Kft, a company owned by Géza Orbán, father of former Hungarian Prime Minister Viktor Orbán, over suspected abuse of office. According to the Telex portal, cited by Yevropeiska Pravda, investigators want to determine whether the company sold construction materials at inflated prices for the expansion of the M1 highway.
Back in March, the 444.hu website reported that stone material was being trucked from Géza Orbán's quarries for the M1 highway expansion. The construction is carried out by V-Híd, part of the business group belonging to Lőrinc Mészáros, one of Hungary's wealthiest entrepreneurs. The project's client is MKIF, a company that received a state concession to operate the highway and is also owned by Mészáros and László Szíjj. MKIF in turn receives substantial state funding for highway maintenance.
Lawmaker's disclosed documents
In June, former independent National Assembly member Ákos Hadházy posted on Facebook contracts he said showed that Dolomit Kft sold stone to V-Híd at prices above market rates. According to Hadházy, some goods were sold to Mészáros's company at twice the price listed in the public price list.
Following Hadházy's publication, Transparency International's legal director Miklós Ligeti filed a police complaint alleging mismanagement. He noted that while it is difficult to confirm overpricing without invoices, if confirmed, purchasing stone with state funds above market price would constitute material damage to state property.
At the end of July, Hungary approved the creation of a new agency tasked with recovering illegally appropriated state funds. Hungarian Prime Minister Péter Magyar recently announced plans to broaden the tax base for companies by abolishing what he called Orbán-era "selective" taxes.
