Before I return to the continuing saga of the corruption scandal surrounding one of many EU-sponsored projects, I would like to call readers’ attention to a relatively new website, Hírvonal (http://hirvonal.hu/index.html), which in my estimation might be the best newsreader in Hungarian. Unlike other similar Hungarian websites, it is organized along the lines of Google News, but with many extra features that make it more user-friendly. Unlike with Hírkereső, here one can find all the articles on the same topic in one place, which is a great time saver. One can look for domestic, foreign, and economic news as well as separate items on culture, sports, science, literature, home, lifestyle, etc. And what is perhaps its best feature, it has an archives going back to May 1, the day that Hírvonal launched, where one can find all the top news items for any particular day.
And now back to the troubles of Roland Mengyi, the honorable member of the Hungarian parliament. As was expected, Attila Rajnai, the well-known investigative journalist, had more up his sleeve than he let on in his article published in the August 4 edition of 168 Óra. In that article he wrote about Roland Mengyi’s attempted bribery in connection with a 500 million forint grant for a network of social cooperatives, allegedly serving the downtrodden in one of the poorest regions in the country. If the participants had succeeded, practically the entire amount of the grant would have ended up in the hands of corrupt politicians and businessmen.
I summarized the case right after the appearance of the article. At that point there was no direct evidence of Roland Mengyi’s involvement. The transcripts of telephone conversations Rajnai got hold of spoke only about Mengyi in the third person, so Mengyi’s attorney, Barnabás Futó, the super lawyer of Fidesz leaders in trouble, could easily brush the whole affair aside as nothing more than malicious hearsay by two or three crooks from Tiszaújváros. But then came August 11, when Attila Rajnai published his second installment.
There is no longer any question about Roland Mengyi’s involvement in this criminal act. A conversation between Mengyi and one of the accused, who is called Dementor in the transcript, attests to Mengyi’s direct participation in the attempted embezzlement of EU funds. From this conversation it is clear that Mengyi has someone inside the ministry of human resources who is most likely not just his source of information but also part of the ring of conspirators. The conspirators included Mengyi as well as the firm Public Sector Consulting Kft. (KSC), whose employee, Szilvia B., came up with the proposal.
And this is the other bombshell in Rajnai’s second article on the Mengyi case. Public Sector Consulting Kft.’s majority owner is Sándor Holbok, who is described by the media as an “ősfideszes,” or “primordial member,” of the party. Before he began his business activities he was chief-of staff of and adviser to József Szájer, who at that time was an important member of the Fidesz leadership. Holbok has worked with practically all the important Fidesz leaders, including Zoltán Balog. From 2006 he has been working closely with Árpád Habony on campaign issues. A high Fidesz official described him as “a good guy who has been for the longest time one of our contacts between the leadership of the party and the business world.”
Ákos Hadházy (LMP), who is the foremost expert by now on Fidesz corruption, claims that Public Sector Consulting Kft. is one of the firms specializing in what Hadházy describes as a racket by which an incredible amount of EU money finds its way into the pockets of project management companies. In a conversation with ATV he told the story of two cases in which Public Sector Consulting Kft. was involved. The municipality of Cece invited KSC and two other companies to bid to manage a program called “Let’s live healthy lives!” which would include screening tests, for which the village received 16 million forints from the European Union. KSC had the winning bid, at 16.2 million forints. Many hundreds of kilometers away the village of Lajoskomárom invited the same three companies to bid on exactly the same project. Again, the winner was KSC for the same amount of money. Neither KSC nor the other two companies had anything to do with the health sector. KSC won bids for all sorts of projects, for example, for water management programs and “human research” projects, whatever that means.
According to Hadházy, this racket works as follows. The ministry writes up a project for which there is no need whatsoever. This project is discussed with one of these project management companies, which then begins to “peddle” the project among those who would like to receive unexpected money for a project dreamed up by the ministry and the project management company. The municipalities are told that these companies will take care of everything, but they will have to get the job. Then comes an open tender, and it is obvious which company will win. Hadházy learned that corruption of this kind reaches as high as the level of undersecretaries, who tell their subordinates to turn a blind eye to these highly suspicious projects.
Although it is the ministry of human resources which is under scrutiny at the moment, Nándor Csepreghy, deputy minister of the prime minister’s office, ended up in the center of the affair for at least two reasons. One is that Szilvia B., the employee of KSC who is now in custody for her role in the Mengyi affair, boasted in one of the transcripts about her excellent relations with Csepreghy, whom she had just met at a party organized for their children. Second, Csepreghy is in charge, as Lázár’s deputy, of the disbursement of EU subsidies. Therefore, he, who unlike other Fidesz politicians is quite willing to give interviews even to opposition television and radio stations, has been talking in the last couple of days at some length about the case. Although he is circumspect in his answers to probing questions, he said yesterday morning on ATV’s Start program that KSC alone has been involved in at least 50-70 projects. Expressing his personal opinion, he announced that he will be “reassured only if the circle of writers of tenders and project managers … will be no more.” Csepreghy claims that during the 2007-2013 cycle these companies stole 1,500 billion forints (5.5 billion dollars). During the same conversation, Csepreghy tried to shift the blame for the incredible corruption that exists around the disbursement of EU funds to the former administrations. He blamed Gordon Bajnai and Klára Dobrev, Ferenc Gyurcsány’s wife. These two people were involved with EU funds, but way before the 2007-2013 cycle that Csepreghy was talking about.
I have no idea when the chief prosecutor will feel compelled to take up this case, but it will be difficult to ignore.