Corruption in the Prime Minister's Office: minister resigns

Dátum: 2003-02-25 17:32:00, eredeti URL: http://archiv.fidesz.hu/index.php?Cikk=7933
KCMDB-be feltöltve: 2024-05-04 18:05:35.941904, Feltöltő: fidesz_hu_scraper_v2

A series of corruption scandals has rocked the Medgyessy-government last week, resulting in the resignation of Mr. Elemér Kiss, Minister in charge of the Prime Minister's Office (number two in the hierarchy of the Hungarian government), on 21 February 2003.

On 18 February, Fidesz MP Péter Szíjjártó held a press conference at which he called the media's attention to a MALÉV Hungarian Airlines internal document published in Utolsó Figyelmeztetés, a monthly student paper. This document made it clear that it is the attorney's office "Forgács és Kiss" that was granted the opportunity, under the terms of a contract worth HUF 30 million (approx. € 125,000), dated 22 December 2002, to audit the Hungarian Airlines. "Forgács és Kiss" is Mr. Kiss's former attorney's office where he had practiced law before the 2002 elections and in which he has a 25 percent stake. Mr. Kiss defended himself by saying that he had suspended his activity at the office upon being named as minister, but in fact he has continued to have the stake in the business.

On 20 February, the daily Magyar Nemzet revealed that MALÉV is not the only state-owned company being audited by the attorney's office partly owned by Minister Elemér Kiss: the same goes to the National Motorway Corporation (NA Rt.). The chairman of NA Rt., Mr. András László, also happens to be a stakeholder at the office "Forgács és Kiss", who he had not even suspended his activity as practicing lawyer. Mr. László was forced to resign on the same day. Later that day, Mr. Kiss asked his attorney's office to cancel their contracts with state-owned companies.

On 21 February, Magyar Nemzet broke yet another story. The daily presented the copy of a document whereby the publishing house entirely owned by the Prime Minister's Office (and directly supervised by the minister) broke its advertisement contract with Magyar Nemzet. The attorney's office asked for this job also happened to be "Forgács és Kiss".

Mr. Kiss handed in his resignation on 21 February, which was instatntly accepted by the prime minister.

A fourth story has also emerged, although only after the minister's resignation. The above mentioned Mr. András László, chairman of the National Motorway Corporation and co-owner and colleague of Mr. Elemér Kiss at "Forgács és Kiss", happens to be the lawyer of Mr. Péter Rácz, head of the Pioneers' Association (the former Communist Youth Movement, currently a socialist-related youth organisation) in a case whereby the Hungarian State is sueing the Pioneers' Association for the ownership of a luxury villa in suburban Budapest, illegally transferred to the PA's assets in 1989. In other words, Mr. László, besides being the chairman of a state-owned company, has been undertaking the part-time job of defending the interests of an individual against the Hungarian State. (Another investigation is going on against Mr. Rácz, as he seems to have sold, in the name of the Pioneers' Association, this villa to his own cousin's firm for the fraction of the real value. Mr. Rácz is now renting this villa from his cousin.)

At a press conference later on 21 February, Fidesz presidium member Zoltán Pokorni has called for an investigation into all the contracts of the Prime Minister's Office since last May. He expressed his conviction that the affairs made public only represent the tip of the iceberg. It will no become clear if the rule of law prevails in Hungary, or the network of old friends and business partners, he said.

This series of scandals is all the more embarassing to the Medgyessy-government that to a great extent it had placed its legitimacy on fiercely attacking the previous center-right government with alleged corruption charges. In the framework of the Prime Minister's Office, a state secretariat had been established right after the change of government which is officially tasked with supervising public finances, but which has concerned itself with nothing else than pursuing a witchhunt against firms establishing contracts with state-owned companies during the previous government. (No accusations have so far taken place in any cases.) This affair also puts in a limbo the "transparent pocket" program heralded by the Medgyessy-government which is officially aimed at preventing corruption infiltrating the state administration.

Budapest, 22 February 2003