Tag Archives: Anikó Lévai

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

Vona, under vicious attack, may yet outfox Orbán

Viktor Orbán is bent on the destruction of Gábor Vona, chairman of Jobbik, and with him the whole party. I know it was only two weeks ago that I wrote a post titled “Power struggle on the Hungarian right?” but I think that recent political developments warrant a second look.

By now I believe that this struggle is more than a turf war between two right-wing parties. Since Jobbik succeeded in foiling Viktor Orbán’s plan to amend the constitution, Fidesz has put Jobbik and its chairman squarely into the enemy camp, along with the parties on the left. Before the confrontation over the amendments Viktor Orbán viewed Jobbik not only as his competition on the right but also as an ally on whom he could call in time of need. Therefore, Fidesz criticism of Jobbik was always muted. But by now these relatively amicable relations have frayed to such an extent that Lajos Kósa, head of Fidesz’s parliamentary delegation, declared two days ago that even Ferenc Gyurcsány was a more decent politician than Gábor Vona. In Fidesz vocabulary one cannot find a more damning description of a political opponent.

Viktor Orbán has come to realize that Jobbik is behaving like a full-fledged opposition party, which from the look of things seems to have surprised him. And he is hitting back hard, which makes the Jobbik leadership fight back even harder. The result is that there are more and more signs of a commonality of interests among all opposition parties. For the time being both sides deny that they have any plans for even limited cooperation, but I wouldn’t be surprised if they changed their minds in the not too distant future. Because, let’s face it, without some cooperation between the left- and right-wing opposition parties Viktor Orbán cannot be unseated in 2018. In fact, if nothing changes, Orbán might die in office. After all, he is only 55 years old.

Viktor Orbán, who had taken Jobbik for granted, feels double-crossed. And we know that in such circumstances Orbán goes into attack mode. The first move was to launch a media campaign against Jobbik. The Fidesz propaganda machine dredged up all of Jobbik’s past sins, real and invented. Ripost.hu found “shocking evidence” that Jobbik is behind the murder of a policeman by an armed right-winger, which is a fabrication. On the other hand, Jobbik does have plenty to hide, including murky relations with Russia and contacts with far-right organizations in Hungary. The Hungarian security offices surely have plenty of incriminating evidence, including photos. Some of this material is being given to Fidesz-friendly media outlets to embarrass the party.

But everywhere they turn they encounter common skeletons in the closet. Ripost.hu made a big deal of the fact that Adrien Szaniszló, who works for Jobbik’s “foreign affairs cabinet,” was born in Moscow, which seems to be an indelible stain on one’s pedigree. The problem is that she is the daughter of Ferenc Szaniszló, a controversial commentator on the right-wing Echo TV, whose high decoration from Zoltán Balog a few years back was greeted with such an outcry that Balog had to ask Szaniszló to return the award. As for Adrien Szaniszló birthplace, it is something she couldn’t help. Her father was Magyar Televízió’s correspondent in Moscow.

It seems that the propaganda ministry didn’t think that warming up these old stories had been effective enough. So they recycled Terry Black’s 2013 story of Vona’s alleged homosexuality. Such stories make a huge splash in Hungary. In 2015 Klára Ungár, a former SZDSZ member of parliament who is openly gay, wrote on her Facebook page: “Viktor blabbers about those members of the gay community who do not provoke and explains why this is a good thing. What do Máté Kocsis and Szájer say to that? Surely they agree and that’s why they are hiding.” Viktor’s blabbering refers to a speech he gave in which he explained that one can live peacefully with gays as long as they don’t make too much noise. He added that gays are different, and therefore they don’t deserve the same rights as heterosexuals. He was referring to the marriage of same sex couples. That’s what got Ungár’s goat. Szájer had the good sense to remain quiet, but Kocsis sued Ungár and lost the case on appeal.

Fidesz was in an uproar over Ungár’s accusations and made a big deal about the immorality of resorting to such methods in order to discredit someone. But now that the government and its servile media are doing the same thing, Fidesz leaders no longer have such compunctions. In fact, Ungár’s little note on Facebook cannot be compared to the onslaught against Vona. I have no idea how successful the smear campaign will be, but the pro-Fidesz media is convinced that it’s working. For example, Ripost.hu claims that Vona finds this accusation so damaging that Jobbik created a special “crisis center” to handle the fallout. It’s no wonder, Riport.hu continues, since in the past Jobbik was a homophobic party that “on several occasions sharply condemned any homosexual relations and, in fact, demanded harsher penalties than are in the existing criminal code.”

I don’t know about the crisis center, but Vona’s wife posted an open letter to Anikó Lévai, wife of Viktor Orbán, asking her to intercede with her husband to put an end to these ad hominem attacks on her husband. She understands that there is “confusion, resentfulness, and vindictiveness” because of the failed constitutional amendments, but political fights should remain within the realm of politics. “I suspect that you are the last person he perhaps still listens to.” To which the website Kolozsvári Szalonna responded: “I want to warn you not to expect miracles from Anikó Lévai, who has as much say in this affair as in her own shitty little life.”

Gábor Vona and his wife, Krisztina Szabó

Gábor Vona and his wife, Krisztina Szabó

If Magyar Nemzet’s information is correct, Gábor Vona is not retreating. In fact, he is ready for a second round with Viktor Orbán. Fidesz already announced that it is abandoning the constitutional amendments and that by the end of the year the sale of residency bonds will also come to an end. Apparently, Jobbik is planning to resubmit the Fidesz bill on the amendments as its own. Only half a sentence will be added to the original text: “settlement requests for financial compensation” cannot be considered.

Such a move would put Viktor Orbán in a very awkward situation. I assume he would not agree to allow Jobbik’s, or any other opposition party’s, bill to reach the floor. Every proposed bill first has to go to committee, where it will probably die. But how will Viktor Orbán explain that his precious bill is not important enough to be discussed and voted on? Even the extra half sentence should be acceptable to Fidesz because the government has already decided to stop the sale of residency bonds. So why should it be dead on arrival?

This is shaping up to be the third major political embarrassment for the infallible political genius. Gábor Vona is obviously a talented politician who has managed to do something no other opposition party has: score a major victory over Viktor Orbán’s government not just once but perhaps twice.

And that’s not all. Vona seems to have something else up his sleeve. In connection with the clearly dirty business of residency bonds the opposition parties suggested setting up a special parliamentary committee to investigate the matter. Naturally, the Fidesz majority voted the proposal down. Jobbik called a meeting of opposition parties, to which representatives of LMP, Együtt, and the Liberals showed up. They decided that the four parties should form an extra-parliamentary “shadow committee” to investigate the affairs of Antal Rogán’s off-shore middlemen active in the residency bond business. The parties’ bigwigs still have to give their blessing to the idea, but the comments of LMP’s Bernadett Szél were promising. In her opinion, alternative political instruments are necessary because no meaningful work can take place in the Fidesz-ruled parliament. Such an extra-parliamentary body can be as effective as an official one, she said.

The work of a shadow committee might have an invigorating effect on the opposition. I must say that I find the idea attractive.

November 12, 2016

The deadly embrace of Hungarian television propaganda

Yesterday, while waiting for the results of the anti-refugee referendum, I decided to take a look at Channel M1, one of Magyar Televízió’s four or five channels. This particular channel is devoted to news and political discussions. I must admit that I hadn’t bothered to watch it before, though of course I knew that since 2010, when Viktor Orbán’s Fidesz party won the election, MTV had become a servile mouthpiece of government propaganda. I heard all the jokes about its being the Hungarian version of North Korean Television and that anyone who has a cable connection avoids M1 like the plague. Insufferable, unwatchable, disgraceful; these were the verdicts coming from Hungary. And then, yes, there’s the astonishing €160,191,200 yearly budget on channels few people watch, although MTV can be received across the country and beyond. (Of the private stations, only RTL Klub and TV2 have nationwide coverage.) Well, yesterday I took the plunge.

Watching Channel M1 while the voting was in progress was a shocking experience. The intensity of the propaganda could easily be compared to the times of Mátyás Rákosi–if, that is, Hungary had had television broadcasting in those days. Friends of mine who worked as journalists during the last two decades of the Kádár regime tell me that, despite the limitations imposed on them by the regime, they had more freedom than those journalists who still work at MTV. The better ones were fired years ago; those who remained do what they are told.

I hate to think how much money MTV spent on this last-minute campaigning for a valid and successful referendum. One reporter was sent to Belgrade to interview “migrants” who are stuck there. Another went to France. Another was dispatched to the “capital of Székelyföld,” which is a fiction of the Hungarian right since there is no way Romania will grant autonomous status to the two counties where Hungarian-speaking Szeklers are in the majority. Another journalist stood in front of a former refugee camp in Debrecen.

The anchor at intervals asked for the latest developments in Belgrade. The correspondent there reported that the “migrants” are breathlessly waiting for word on the outcome of the referendum. If it is not valid, they are planning to storm the Hungarian border first thing Monday morning. Ten or fifteen minutes later the anchor got in touch with the reporter in Belgrade again for “the latest developments.”

Then came the turn of the reporter from France. She was in the village of Allex in southeastern France where, as several French- and English-language papers reported in mid-September that“furious villagers have plunged France’s asylum system into chaos after demanding a vote on whether to kick out migrants re-homed in their neighborhood.” Allex had to take 50 refugees and the locals, egged on by the Front National, created a situation that became explosive. They demanded a referendum, which couldn’t be held because localities cannot decide on immigration issues. This news was picked up by right-wing Hungarian internet sources like Origo, 888.hu, and Pestisracok.hu around September 15. So MTV sent a special correspondent to this village to record a conversation with the mayor about “the lack of democracy” in France.

The reporter in Csíkszereda told MTV’s audience in Hungary about the great enthusiasm among the Szeklers for this referendum. Népszabadság’s Bucharest correspondent, who was also in Csíkszereda, reported otherwise. According to the Hungarian consul-general, 17,525 people asked for ballots and instructions to vote on Sunday but 11,820 (67.45%) didn’t bother to pick them up. In Cluj/Kolozsvár the situation was a bit better. All in all, there was not much to see in Csíkszereda. Most people had already voted by mail and, as we know, more than 16% of the ballots were invalid. According to the National Election Office, 30,705 ballots came from Transylvania before October 1.

Then came the story of all the atrocities that “migrants” had committed in the last year or so in Hungary. The reporter stood in front of the by now empty barracks that used to house refugees in Debrecen. The whole neighborhood was ruined, there was litter everywhere, fighting broke out over some dispute about the Koran, every time they wanted something some migrants climbed up on a tower and threatened to jump if their demands were not met. In short, it was sheer hell and, if migrants were allowed to enter Hungary, the whole country would be like that. The story then continued with the “terrorists” in Röszke who threw rocks at the policemen, people at the Keleti Station, and the march toward Vienna. A long litany of atrocities committed by the “migrants.”

Finally came a series of interviews with politicians and ordinary citizens who all voted no and who explained their weighty reasons for doing so. These stories were packed into one hour of non-stop propaganda, which was outright stomach turning.

television-propaganda

I decided to write about the hour I spent on the state propaganda channel of a so-called democratic country because the defeat of Orbán’s referendum is even more momentous when viewed in the context of this government attempt at brainwashing voters.

Although most foreign and domestic observers consider the result a colossal failure for the Hungarian government, the Fidesz leadership gathered stone-faced in front of a small and somewhat artificially enthusiastic crowd to announce the government’s great victory. Journalists were forbidden to be present. In a short speech Viktor Orbán shamelessly claimed that nine out of ten Hungarians voted for the sovereignty of Hungary. “Brussels or Budapest. That was the question and we decided that the right of decision lies solely with Budapest.” Although I often get confused with numbers, I’m pretty sure that 2,978,144 is not 90% of 8,272,624 eligible voters.

As for his future plans concerning a change of the constitution, it is about as illegal as the referendum itself was. I know that Jobbik will support it because Gábor Vona’s original suggestion was a simple change of the constitution, which Fidesz refused to consider and instead launched the referendum campaign. We don’t yet know whether the democratic opposition parties will present a common front. So far DK and MSZP have announced that they will boycott any parliamentary action concerning an amendment to the constitution. The small Magyar Liberális Párt also expressed its disapproval of changing the constitution on account of the refugee quota issue.

Tomorrow I will attempt to shed some light on the very complicated issue of the relationship between the referendum and the constitution. Meanwhile we will see how Orbán handles this new situation. I suspect with belligerence and even more hateful speeches against both the refugees and the opposition. 444.hu recalled today an interview with Anikó Lévai, Orbán’s wife, in Story magazine a couple of years ago. She told the reporter that her husband is unable to lose and gave a couple of examples. When they run together, he pretends that he is close to chocking and is far behind, but in the last minute he revives and sprints ahead, beating her. Only once did it happen that they took part in a ski competition where she came in first and he second. By the time the results were announced Orbán had arranged to separate the sexes, and thus he was first in the men’s category. He is always ready to change the rules of the game. I think this is what we can expect.

October 3, 2016

From gas-fitter to owner of Chateau Dereszla

Today we are going to make a side trip to Tokaj where, believe it or not, Lőrinc Mészáros, who is considered to be Prime Minister Viktor Orbán’s front man (stróman in Hungarian), is in the process of buying a vineyard. Not just any old vineyard but Chateau Dereszla, a 54-hectare estate owned by Count Patrick d’Aulan, an internationally known vintner with large estates in France and Argentina. Apparently, Dereszla has been a successful business since about 2000, with well-established markets in Poland and Russia. Mészáros’s purchase of the vineyard came as a great surprise to the locals.

Isn’t it interesting that Mészáros decided to follow in the Orbáns’ footsteps, whose very first business undertaking was a vineyard in the Tokaj region? It was a joint venture with Dezső Kékessy, a wealthy Hungarian businessman from Switzerland. The Orbáns’ share in the company (held in the name of Anikó Lévai, Orbán’s wife) that Kékessy formed was relatively small, but they became key business partners due to Orbán’s position as prime minister. Here’s how the deal worked. At that time the largest buyer of grapes in the region was a state bottling company that was close to bankruptcy. First, the Orbán government injected billions into the bottling company to make sure that the Orbán-Kékessy Estate’s grapes could be sold. In two years the bottling company received 4 billion forints in state subsidies. But that was not all. The vineyard that they bought was not worth much. The stock was old, and to make it a successful business a large amount of capital was needed to plant new vines. The Orbán government came to the rescue: the Orbán-Kékessy Estate initially received 41,475 million forints and later, on two separate occasions, an additional 64.5 million forints in subsidies. Thanks to the excellent investigative work of the late Krisztina Ferenczi, all this eventually came to light. There was embarrassment but nothing else happened, except that Anikó Lévai quickly sold their share of the estate.

The pending purchase of Dereszla was a well-kept secret, but by now it is certain that the happy new owner will be Lőrinc Mészáros, the gas-fitter and friend of Viktor Orbán. He has never been known as a connoisseur of fine wines, unlike most vineyard owners whose palates have been refined by years of studying the mastery of wine-making.

In the past, before the communist takeover, Tokaj wine was highly regarded, but it soon “became world famous only at home,” as the saying went. Dereszla was first acquired by a French co-op right after the change of regime. Later it was purchased by the D’Aulan family, who put a great deal of money into the operation, planting new stock and introducing the most modern equipment. Although Russia and Poland are the largest markets for Chateau Dereszla wines, they are also available in the United States. The wines of Dereszla were chosen to be among the representative wines served at government functions and at embassies. In 2012 “Count Patrick d’Aulan was honored with the Knight of Merit by the President of the Republic for his dedication and promotion of the wines of Tokay.”

dereszla

So, d’Aulan’s estate will be added to the growing number of business schemes of Mészáros, who over the last few years has become a billionaire. He has so many irons in the fire that he is sometimes confused about just what he owns. A while back he had no recollection of a business he had established in Russia. More recently, he purchased the Osijek football club (NK Osijek). Mészáros’s purchases run eerily parallel to Viktor Orbán’s interests: agricultural land, real estate (hotels), football clubs, and now vineyards.

Why the sudden interest in Tokaj? Andy Vajna, a Hollywood producer and now a businessman in Hungary with close ties to Viktor Orbán, is also interested in purchasing a vineyard in Tokaj. One, maybe the most important reason, to look for estates for sale in the Tokaj region is that 40 billion forints in subsidies are going to be sunk into the region by the Orbán government. This amount is over and above a 100 billion forint package that was announced in January 2014 by János Lázár. The plan is as follows. The state will buy 1,000 hectares, which will then be parceled out either in the form of 25-year leases or even outright sales for those close to the government and Fidesz. There is also talk about planting perhaps as much as 2,000 hectares with new vines, which would make the wines produced in the region more desirable and naturally more expensive. Here and there one can hear talk of a new bridge across the Bodrog river and new roads.

Viktor Orbán’s first business venture in Tokaj 16 years ago was small potatoes in comparison to Mészáros’s purchase of a thriving winery with an established name. Then, the Orbáns were satisfied with a few hectares of third-rate wine produced from old stock that should have been replaced decades before. They were content to sell their inferior grapes to a state bottling company that produced cheap wine. Mind you, that was only an interim solution while they waited for government subsidies to be able to plant new vines. The money at that time came solely from the Hungarian government because in 2000 Hungary was not an EU member. Now it is really free money: the subsidies come from the hated European Union. Unless Brussels gets tired of doling out money to countries that refuse to cooperate in solving the refugee crisis or that have a proven track record of corruption.

May 28, 2016

The scandal of Viktor Orbán’s secret estate

Until now the personal excesses of Viktor Orbán, prime minister of Hungary, could be summed up in one word: “Felcsút,” a small village where, just like Romania’s former dictator Nicolae Ceaușescu, he built a luxury football stadium right next to his adobe house and where his private foundation, the Ferenc Puskás Football Academy, is located. Orbán’s foundation is richly endowed. Since 2010 it has received nine billion forints from the tax-free donations of admiring oligarchs. Hundreds of articles have been written about the Felcsút phenomenon, where everything is about Viktor Orbán and his whims. But it is possible that his downfall might come from a village only a couple of kilometers south of Felcsút called Alcsútdoboz, originally just Alcsút, meaning “Lower Csút, as opposed to Felcsút, Upper Csút.

The first time I learned that Archduke Joseph had an estate in Alcsút was when I read an amusing story, related by Mihály Károlyi, prime minister of Hungary in 1918, about the archduke. Archduke József suggested to him that, because of his enthusiasm for the new Hungarian republic, perhaps he should change his name to József Alcsúti. Károlyi wryly noted that he shouldn’t have tried to persuade the archduke to make a fool of himself.

Well, by now it is pretty certain that the Orbán family owns part of that estate and most likely hundreds of hectares of excellent agriculture land surrounding it. Thanks to Nárcisz (Daffodil) the kuvasz, whom Viktor Orbán paraded around to please those who are concerned about animal welfare, information has been gathered that makes it almost certain that Lőrinc Mészáros is a front man of Viktor Orbán. Not that we didn’t suspect that before, but none of the tricks for hiding Viktor Orbán’s wealth could ever be detected. Now, however, we have some idea of how the Habsburg estate ended up being the home of the prime minister’s family.

Until July 2011 the 13 hectare estate with five separate buildings and a water tower belonged to the Csákvári State Farm. It was then purchased by the CZG Real Estate Company, established in Székesfehérvár in 2006 by Győző Orbán, father of the prime minister. As soon as the older Orbán acquired the property, it was rented to Lőrinc Mészáros, mayor of Felcsút and a close “business associate” of Viktor Orbán. Mészáros told Krisztina Ferenczi, the journalist who spent years investigating Orbán’s shady business dealings, that he rented the place to store his farm equipment. For that privilege he plopped down 155 million forints, which allowed him to use the property for ten years. With this 155 million forints Győző Orbán paid off his loan from CIB Ingatlanlízing for the purchase of the estate. The property is still owned by CZG Real Estate.

Back in 2012 Mészáros told Ferenczi that no renovation was taking place, except for the minimal maintenance of these historic buildings. Ferenczi, however, could see even from a distance that several buildings on the property were being extensively renovated. Expensive new tiles from Coruna, Spain were installed on the roof and a second floor with dormer windows was being built from the attic of one of the buildings. At that time Ferenczi reported that on the second floor eight bedrooms, each with a separate bath, were created. By all appearances the Orbáns were planning to move in because the Felcsút house, right next to the site where the stadium was being built, was becoming unbearably noise and dirty. Ferenczi at that time came to the conclusion that, by the look of it, it was “Mészáros who bought a very expensive piece of real estate for the Orbán family.” I think we can flesh this out a bit more. First, Győző Orbán on borrowed money bought property that, although still in the name of CZG Real Estate, actually belongs to Viktor Orbán, who paid for it through Lőrinc Mészáros’s fictitious transaction, which is a crime by the way. What happened here is a typical money laundering scheme.

Ferenczi saw boxes of books that were owned by Anikó Lévai, Orbán’s wife, when she still lived in Szolnok with her parents. She spotted a temporary carpentry shop that was producing doors and windows made out of oak that greatly resembled the ones that were installed in the Orbán’s house in Buda. No question, a very expensive reconstruction and renovation of the buildings was taking place already in 2013. Ferenczi was also told by the locals that Viktor and Anikó Orbán often visited the site, which already at that time was impossible to approach.

I should add that the surrounding agricultural land is in three hands. Lőrinc Mészáros has 155 hectares, which he acquired on a twenty-year lease, after which the lessee, whether Mészáros or not, can purchase the land. A second owner is Anikó Lévai, who purchased land for very little money some years ago. Anikó’s land is rented out to János Flier, who owns substantial pieces of land around the estate. Flier might also be a front man, or at least he was often mentioned in the media as such. Therefore, there is a very good possibility that perhaps as many as 200 or even 300 hectares of land surrounding the estate actually belong to Viktor Orbán.

Details of the owners of agricultural land surround the estate

Details of the owners of agricultural land surrounding the estate. Búzakalász is Mészáros’s company.

Unfortunately, opposition politicians failed to pick up the stories published by Krisztina Ferenczi in 2012, which very accurately described the situation. Suddenly now, in search of Nárcisz’s home, Péter Juhász of Együtt, who is the most relentless corruption hound, decided to pursue the story and demand an investigation of Viktor Orbán’s financial situation, which is clearly not what he claims it to be. Under the circumstances I very much doubt that there is any hope of a serious investigation. But thanks to Nárcisz there is now proof that the Orbáns actually live in the former estate of Archduke Joseph. The dog’s microchip tells us that his owner is Gáspár Orbán, son of Viktor Orbán. In 2013, when microchips were made mandatory for dogs, his domicile was listed as Alcsútdoboz. Moreover, the gatekeeper of the estate named Viktor Orbán as his boss, not Lőrinc Mészáros, when talking with the journalists of 444 a few days ago. Slip of the tongue.

I doubt that anyone could prove that the estate is actually Orbán’s. On paper it is still owned by his father’s company, but if Hungary had an independent prosecutor’s office it could certainly probe into the details of the renovation of the buildings. Where did the money come from for what had to be a very expensive undertaking?

László Seres in HVG predicted that “with the discovery of Nárcisz’s domicile the fall of Viktor Orbán has begun.” That’s a far too optimistic assessment of the situation, but given all the country’s domestic problems, the discovery that the modest prime minister is actually a billionaire who lied about his wealth for all these years might inflame the population. Jenő Veress of Népszava also asked: “Could Nárcisz be the banana peel that the empire falls on?” Maybe, but for that the whole opposition must keep the story alive and not let the scandal die, as opposition politicians have so often done in the past.

March 10, 2016

The Orbáns and Hungarian gentleman farmers

I just raced through Krisztina Ferenczi’s new book, Narancsbőr (Orange peel). Since I usually read her articles about the Orbán family’s dubious financial dealings, I was familiar with most of the details. Ferenczi’s earlier book was about the Orbáns’ brief encounter with viticulture in Tokaj. They got burned when it came to light that Viktor Orbán as prime minister used his influence to receive a substantial state subsidy for their newly acquired vineyard. It was only through a clever legal trick that Orbán’s skin was saved. Since then he has been super clever and has avoided any kind of business venture that may get him into a tight spot as a possible recipient of subsidies either from the European Union or from the Hungarian state. It is true that his wife, Anikó Lévai, owns some agricultural land in Felcsút, but officially at least it is leased to János Flier, the former electrician I was talking about yesterday and one of Orbán’s likely front men in Felcsút. Lévai claims that the subsidies she is entitled to actually go to Flier. When Ferenczi asked Flier about it, he replied: “You ought to ask her how it is exactly” (Tőle kellene megkérdezni, hogyan is van ez). Flier is obviously not the sharpest knife in the drawer.

So, the Orbáns who got burned with Tokaj are now very careful. And yet the incredible wealth Orbán’s two close friends in Felcsút, Lőrinc Mészáros and János Flier, amassed made the inhabitants of the village more than suspicious. They are convinced that Viktor Orbán is an active business partner in the growing Mészáros-Flier estates. Perhaps he is the majority owner of them.

Ferenczi found many signs that this is probably the case. She talked at length with people who work on the cattle ranch owned by Mészáros, which Viktor Orbán visits frequently. It seemed obvious to them that Orbán is not just a casual visitor there. “He had something to do with the enterprise.” It also came to light that the charolais cows of Orbán’s new son-in-law are also part of the herd of 3-4,000 animals which, by the way, are kept, according to Ferenczi, under terrible conditions. I might also add here as a footnote that in the past at least the people who worked there officially received only 65,000 forints a month; the rest, 35-45,000 forints, illegally changed hands under the table.

Yesterday an article about the new stadium in Felcsút appeared in The New York Times with a picture of the half-finished stadium right next to the Orbáns’ country home. It is perhaps the best picture I have seen of the two together and leads me to believe that the modest abode the Orbáns built in 2003 will not be there for long. If the stadium is a “jewel box,” as Orbán once described it, the peasant adobe house 20 feet away is a jarring eyesore. And that leads me to the very good possibility that the Orbáns have a very much more elegant dwelling in mind: the former country house of the Hungarian Habsburgs nearby. The building was badly damaged during World War II, but it looks as if the Orbán family has plans to rebuild it in its earlier splendor. Viktor Orbán’s father, Győző, who apparently besides his quarry also has a real estate business, purchased the whole remaining estate a few years ago.

Who were the Hungarian Habsburgs? The founder of the Hungarian branch was Archduke József, the much beloved palatine (nádor) of Hungary (1776-1847), who became a patron of art and an important promoter of the development of Budapest and the country in general. It was he who acquired a large piece of land in Alcsút and built a beautiful palace there. He and his family settled in Hungary for good. The last Archduke Joseph (1872-1962) who played a role in Hungarian politics was actually born in Alcsút. By all indications some of the remnants of Archduke Joseph’s estate are in the hands of the Orbán family and, according to some information Ferenczi received on the spot, work has already begun. The site is off limits to strangers. It is guarded by security personnel as well as by a kuvasz named Nárcisz (Daffodil). Orbán admitted that the family has a ferocious dog called Nárcisz, but, he added, “it is in Felcsút.” I guess he didn’t want to say that the animal is actually guarding part of the Archduke Joseph’s estate owned by his family.

The remnant of the Habsburg Palace, Alcsútdoboz Source: Wikipedia Commons

The remnants of the Habsburg Palace, Alcsútdoboz
Source: Wikipedia Commons

As I was reading about the landholdings of Viktor Orbán and Anikó Lévai it occurred to me that this unexpected yearning to be “lord of the manor” (földesúr) is typical of Hungarians who may have achieved great wealth or fame in some other endeavor but think their life is not fulfilled without having some land and preferably a sizable and elegant palace to go with it. One of my favorite Hungarian novels is Kezdetben volt a kert (In the beginning there was the garden) by Anna Lesznai, first wife of Oszkár Jászi. The book is largely based on her own family’s story. The grandfather, a well-known Jewish doctor who amassed a fortune, feels that his life is not complete without owning land. He buys a large estate somewhere in the Uplands (today Slovakia) only to realize that this kind of life is not for him. But then comes his son who finds it very much to his liking. The assimilated well-off Jewish family becomes like their non-Jewish noble neighbors next door. Many of these Jewish gentleman farmers eventually received nobility in the second half of the nineteenth century.

I also read stories about 1956 refugees who made it in the United States or in western Europe and who after 1990 went in search of neglected manor houses and country estates in Hungary. Now they are gentleman farmers. A favorite hobby investment was viticulture. Neglected old vineyards were bought up in Tokaj, and with some state subsidies the new owners planted new vines and are currently trying their hands at producing quality Hungarian wines. A good example of this kind of 1956er is Dezső Kékessy, earlier a business partner of Viktor Orbán. He has a vineyard in Tokaj and also bought a country estate.

In her book Ferenczi recalls a film in which Anikó Lévai talked about her ardent desire to return to the soil. After all, she came from peasant stock. Her father finished only six grades. We don’t know how much land her father had, but she referred to him as a “kulák,” a rich peasant. She hoped, she said, that once her husband retires from politics, she could perhaps start “a somewhat larger organic farm.” I learned while researching this post that the Habsburg archdukes had a “model farm” (mintagazdaság) in Alcsút. Perhaps one day on the old Habsburg lands Anikó Lévai can run an organic farm.

Orbán’s clan is plundering the state coffers: The world is taking notice

The talk in Hungary is about corruption. Corruption that seems to consume every nook and cranny of political life. It is an open secret that one of the main aims of Viktor Orbán, in addition to making sure that he will be the prime minister of Hungary for a very long time, is the enrichment of his friends and family. Thanks to the work of some investigative journalists, like Krisztina Ferenczi and Attila Mong, more and more evidence is surfacing that Viktor Orbán is feathering his and his friends’ nests.

Orbán is not like Viktor Yanukovycz, who lived lavishly in tasteless gilded palaces. Considering his estimated wealth, Orbán and his family live modestly. They have a comfortable but unpretentious house in one of the more elegant parts of Buda and an outright humble-looking house, designed in the style of the adobe peasant houses of yore, in Felcsút. The family’s landholdings are something else. Year after year Orbán’s wife, Anikó Lévai, added cheaply acquired lands in and around Felcsút where Viktor’s family spent some time when he was a young child. Moreover, almost everybody is convinced that the Orbán family’s landholdings are much more extensive than official documents attest to. The rest, perhaps thousands of acres, is held under the names of front men.

Viktor Orbán's country home in style of old adobe peasant houses

Viktor Orbán’s country house

For some time Hungary has been brimming with anecdotes and speculation about the Orbáns and their friends, but the charge of wholesale stealing from the national wealth could not be contained within the borders for long. Only two days ago an article appeared in one of the most influential German papers, Der Spiegel, with the title: “Orbán’s clan plunders the state coffers.” As Krisztina Ferenczi told the author of the article, Keno Verseck, “Hungary has become in recent years a kind of large estate” and the lord of the  manor is Viktor Orbán himself.

One reason for the disguised land ownership, assuming the charge is true, besides the obvious one of undeclared wealth without any legitimate means of accumulating it, is that the landholdings are heavily subsidized by the European Union even if they are left fallow. Surely, it would look bad if the European Union were paying millions for the lands of the Hungarian prime minister. There are several indications that Orbán has two front men in Felcsút, Lőrinc Mészáros and János Flier. Both by now have thousands of acres they received fraudulently from the state on twenty-year leases. Neither has any experience in agriculture. Flier used to be an electrician and Mészáros had a small business bringing gas pipes to the inhabitants of the village a few years back. Now they are in charge of large farms.

Viktor Orbán is as upstanding in politics as he is in his financial dealings. The electoral law and its execution are based on fraud. Since he has a pathological need for power, he will never allow a reprise of 2002 and 2006 when he lost the elections. This time he is covering all his bases. We talked a lot about the coming elections and concluded that the final results would be questionable, but I still suggest taking a look at some of the comments on the topic by readers of Hungarian Spectrum. Unfortunately, since the Orbán government is in charge of the mechanics of the election we will never be able to prove fraud, however obvious it might be in places.

Orbán is a role model for Fidesz officials, and part and parcel of that model is his outsize accumulation of wealth. The latest official to come under scrutiny for unexplained affluence is Antal Rogán.

Rogán belongs to the younger generation of Fidesz officials. He had just finished high school at the time of the regime change. In college he majored in economics and soon after graduation was heavily involved in Fidesz politics. By the age of 26 he became a member of parliament and three years later one of the deputies of Viktor Orbán. Currently, he is the leader of the large Fidesz parliamentary caucus.

It seems that Antal Rogán was equally successful when it came to enriching himself. We don’t know how, but Rogán, his wife, and two young children live like nabobs in “Pasa Park.” This gated community is in a part of Buda called Pasarét (Meadow of Pasha), hence the name of the building in which many top Fidesz officials live, including Mihály Varga, minister of national economy. The Rogáns have two and a half apartments worth about 300 million forints. People who are investigating the case claim that Rogán’s total career earnings so far amount to no more than 16 million forints. His wife doesn’t work. His current salary is 1.3 million forints a month, but his expenses far exceed his income. He is still paying about half a million forints a month on his 60 million forint mortgage, he has to pay 300,000 a  month for maintenance, he pays 250,000 to lease an Audi 6, and the two small boys go to a private kindergarten for 300,000 a month. And presumably the family doesn’t starve.

Rogán got into trouble because he did exactly the same thing as  Gábor Simon (MSZP): he didn’t tell the whole truth about his wealth on the financial statement he has to provide to parliament. But while Simon is in jail, Rogán only had to “correct” his financial statement. He may have to keep making corrections as new pieces of information surface. It seems he owns property that he inherited from his grandmother and father in his hometown as well as a country house in Balatonlelle.

Given the way Orbán’s “justice” works, we can be assured that nothing will happen even if the accusations turn out to be correct in every detail. Nothing will happen not only because investigation and punishment depend on the ruling Fidesz party but also because all Hungarian politicians made sure that these financial statements are not worth the paper they’re written on. If, for example in this case, Rogán says that the money for the real estate and the lavish lifestyle comes from loans extended by family and friends, the authorities will be satisfied. He will not have to give any proof of actual transactions. Knowing the high moral fiber of Hungarians, I’m sure there would be plenty of people who would gladly swear that they were the ones who extended the money to Rogán.

That’s how things are in Hungary. It’s no wonder that people are not outraged about the rumors of electoral fraud or the plundering of the state coffers. They are accustomed to corruption and think it best to remain silent. They cannot do anything about it in any case.