Tag Archives: Ádám Mirkóczki

One can always count on a good friend (or an alter ego): Lőrinc Mészáros and Viktor Orbán

I have the feeling that as long as Hungary has the misfortune of having Viktor Orbán as its prime minister there will be no end to the scandalous affairs surrounding Lőrinc Mészáros, the pipefitter from the village of Felcsút whose brilliant business acumen is the marvel not just of Hungary but perhaps the whole world. Since 2010 he has become one of the wealthiest men in the country thanks to, as he himself admitted, God, hard work, and, last but not least, his friendship with Viktor Orbán. Every time one turns around the miracle pipefitter has made a new acquisition. By now he himself is confused about the businesses and properties he owns. Occasionally he has to be reminded by others that he is the owner of this or that property or business. It could be amusing if it weren’t so sad.

I don’t think you would find too many Hungarians who think that Mészáros’s businesses are actually his own. The information made public today only reinforces this skepticism. One of Mészáros’s companies paid a 3 billion forint debt of Cider Alma [Apple] Kft., a company in part owned by Viktor Orbán’s brother-in-law and nephew. No, this figure is not a mistake; we are talking about 3 billion forints or $10.3 million.

To understand this transaction, let’s go back a little in time to the establishment of a number of centers, representing the Hungarian National Trading House (MNKH), under the aegis of the newly reorganized ministry of foreign affairs and trade. An incredible amount of money was poured into these trading centers in far-flung places across the globe. They were supposed to promote Hungarian business abroad. Unfortunately, in the last two years the foreign ministry’s business venture has lost something like 6 billion forints without bringing in an appreciable amount of money as a result of international trade.

At the end of September 2016 444.hu found out that a certain Cider Alma Kft. owes MNKH 3.2 billion forints and that the trading house now has in its possession 5 million packages of 425 ml vacuum-packed corn and 1.5 million 720 ml packets of pitted sour cherries. 444.hu’s investigative team was a bit puzzled and at first couldn’t see the connection between the corn and sour cherries on the one hand and Cider Alma Kft. on the other. But then they found an item from 2015 which revealed that MNKH had lent 3.2 billion forints to Cider Alma to produce apple sauce (not, as its name would indicate, apple cider). A year went by and only 280 million forints were paid back. Obviously something went wrong and Cider Alma was broke. Or, using a slang expression, the whole thing went “alma,” in this sense meaning “went bust.” 444.hu couldn’t resist a good line: “Would you like to have some apple sauce? Call the foreign ministry.”

Close friends with lots of secrets

It didn’t take more than a couple of days for 444.hu to learn that “Orbán’s relatives are dropping from the spaces between the packets of corn and sour cherries.” It turned out that Gizella Lévai, sister-in-law of Viktor Orbán, and her partner, Imre Ökrös, are business partners in three different subsidiaries of Cider Alma Kft. The relationship between the owners of Cider Alma and the Orbán relatives is so close that Ökrös’s two companies, Érvölgye Konzerv Kft. and Kelet Konzerv Kft., became the guarantors of the loan MNKH extended to Cider Alma. There are other Orbán relatives in this particular business venture as well. Most notably, Ádám Szeghalmi, Gizella Lévai’s son, cousin of the Orbán children, is the CEO of Drogida Hungaro, also a subsidiary of Cider Alma.

Hír TV immediately went after the story and asked for details of the deal. Specifically, they launched an inquiry into the fate of that loan. Ordinary citizens are entitled to get such information because MNKH is a state company and therefore the sum in question is public money. Five months later, Hír TV learned that the debt had been sold to Hórusz Faktorház Zrt., which happens to be a business venture in which Lőrinc Mészáros is involved. Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party at a discount. It is hard to find out much about this factoring company, except the name of its CEO.

Factoring is a common tool of finance, so Jobbik’s spokesman, Ádám Mirkóczki, was uninformed when he said: “I have never heard of a case where one company pays another company’s debt.” Admittedly, this arrangement is atypical. Cider Alma, it seems, had no accounts receivable, only some inventory to sell. Perhaps Mészáros and his business partners thought that the corn and sour cherries could be sold for more than they paid to settle Cider Alma’s debt. Of course, it is also possible, perhaps even likely, that Hórusz Faktorház took over the debt knowing full well that the firm will never see a penny. It was simply an arrangement among relatives. Whether we will learn more about this case I very much doubt. I agree with Ágnes Vadai of Demokratikus Koalíció that Fidesz corruption cases are simply dropped by the prosecutor’s office and this is especially so when the prime minister’s relatives are involved.

The funniest piece on the case was written by Bálint Molnár in Kolozsvári Szalonna (Bacon à la Kolozsvár). It bears the title “Is it surprising that with such stupid relatives the prime minister is flat broke?” The reference is to Viktor Orbán’s latest financial statement in which he went a bit too far in trying to make himself an average Joe financially. He was already quite poor in 2015 according to that year’s financial statement, but by the end of 2016 he was outright poverty-stricken. He does have one and a half pieces of real estate. He is half owner of the family’s Budapest home and sole owner of the house in Felcsút, right next to the stadium. But he and his wife have only 743,000 forints ($2,551) in their checking account, and they owe 5,999,694 forints ($20,600). He still has four dependent children, and his monthly pay as prime minister is 1,558,333 forints ($5,350). Let me add that an average Hungarian family has over 2,500,000 forints ($8,580) in its checking account. Anikó Lévai must be a very frugal housewife. On the other hand, Mészáros is busily buying one piece of property after the other. According to the latest account he is building a football stadium in Osijek, Croatia, where he wants to establish Europe’s best football academy. Oh my, and what will happen to Felcsút?

February 14, 2017

Jobbik and the U.S. presidential election

The latest on Ghaith Pharaon

First, I think I should say a few words about the latest developments in the Ghaith Pharaon case. Heti Válasz, a conservative weekly, learned that in January 2014 Pharaon received not only a Hungarian visa but also a residency permit “for the purpose of business and investment activities.” It was the Jordanian honorary consul in Budapest—who by the way was Viktor Orbán’s host at that by now infamous dinner in Pharaon’s honor—who requested the visa, and it was the Hungarian consulate in Beirut that issued it. By the look of things, the Hungarian authorities ignored all the rules and regulations to make Pharaon’s life in Hungary trouble free. For a residency permit the applicant’s fingerprints must be taken but, when pressed, the ministry of interior admitted that Pharaon wasn’t even required to have an official photograph. For almost three years Pharaon had the right to travel to and from Hungary at will. He could also, if he chose, travel anywhere in the European Union. All national security precautions were dispensed with in this case. He most likely enjoyed the protection of Viktor Orbán himself.

Jobbik on the U.S. presidential elections

The government’s rejoicing over Donald Trump’s victory knows no bounds. The pro-government media is full of stories of the “liberal rabble” on the streets who have been aroused against the president-elect by people like George Soros. Relentless attacks on the Obama government and Hillary Clinton can be found daily in all the right-wing papers.

Interestingly enough, Jobbik’s reaction is a lot more tempered and, I must admit, more realistic. The government-financed 888.hu was outraged when it found that Ádám Mirkóczki, Jobbik’s spokesman, in response to a question from a reporter of HVG, called Trump “an unfit and poor candidate” who is “an unpredictable madman.” Otherwise, he said, the choice was difficult because neither candidate was inspiring.

A few days later, in an interview with Magyar Nemzet, Mirkóczki was more restrained in the sense that he didn’t repeat his one-liner about Trump’s state of mind, but he further elaborated on Jobbik’s position that the presidential choice this year was poor. The interviewer assumed that Jobbik “is as satisfied with the results of the American election” as Fidesz is, but he didn’t get the answer he was expecting. Mirkóczki said he feels for the American people, who had to choose between two poor candidates. He shares the government’s opinion that Clinton “would have been a disaster for Hungary” and in that sense between the two “catastrophic candidates, the less bad won.” Jobbik only “hopes that Trump’s policies will coalesce with Hungary’s interests.” But Mirkóczki was more than cautious on that score because “we don’t know anything about [Trump’s] political ideas.” If we can believe the Jobbik spokesman, the party hopes that Trump will mellow in time because “a radical leading the United States is not in Hungary’s interest.”

Ádám Mirkóczki, Jobbik spokesman

Ádám Mirkóczki, Jobbik spokesman

Jobbik doesn’t think that with Trump’s victory U.S.-Hungarian relations will be much better. Orbán will remind the American diplomats of his early support for Trump, but such messages are “irrelevant as far as economic, political, or military relations are concerned between two countries.” In plain English, as long the present government continues on the same path it has followed in the last six years, change of presidency or not, U.S.-Hungarian relations will not improve.

About a year ago Gábor Vona delivered a speech in which he talked about his party’s intention to develop direct relations with politicians in Washington. As far as I know, several Jobbik politicians visited Washington and other larger cities. Jobbik is no longer an outcast, so its politicians had the opportunity to meet with several ambassadors in Budapest, including U.S. Ambassador Colleen Bell. Mirkóczki thinks that Orbán’s diplomatic approach to the United States has been counterproductive. Jobbik would strive for consensus, a style void of the “arrogant, lecturing, and negative style” that Fidesz has chosen in its dealings with the United States.

Of course, it is difficult to tell how much of this is merely for show. Recently BBC’s Nick Thorpe wrote an article about the metamorphosis of Jobbik “from a radical nationalist party … to a moderate ‘conservative people’s party’” and said that Vona “now promises to restore the checks and balances lost under Orbán.” He quotes Vona, who nowadays tries to avoid political labeling, who said that “if [he] lived in Greece [he] would probably vote for Syriza, though they are supposed to be on the left.” He also adopted Bálint Magyar’s characterization of Orbán’s regime and called it “a mafia-type state.”

Given Jobbik’s past, it is probably wise to take much of this with a grain of salt. But Jobbik’s cautious attitude toward the impending Trump presidency is much more statesmanlike than the Orbán government’s uncritical admiration of Trump’s radicalism. In this respect at least, Jobbik sounds more like a conservative party; Fidesz, the radical one.

November 16, 2016