Tag Archives: BDPST Zrt.

“The struggling young couple”: István Tiborcz and Ráhel Orbán

I haven’t written anything about the financial affairs of the Orbán family lately, although news of the shady affairs of the father and brother of the prime minister crops up often enough. Today I’ll return to the financial affairs of Viktor Orbán’s son-in-law who, though barely 30 years old, has most likely already amassed a considerable fortune.

István Tiborcz’s first business venture ended rather abruptly when OLAF, the European Commission’s Anti-Fraud Office, announced that it was going to investigate his company, Elios, which had won tenders for the installment of LED lighting in scores of Hungarian cities. The lighting project was largely financed by the European Union. The Tiborcz-Orbán “family firm” realized that, in this instance, the brazen expropriation of EU funds would not be tolerated. So Tiborcz in a great hurry “sold” his firm to a businessman with very strong ties to Fidesz. Tiborcz then went into the real estate business. As he explained to Origo a few days ago, he, as a member of the prime minister’s family, is limited in the kinds of financial activities he can pursue. He claims that for the past two years he has been buying real estate only from private individuals, no state property.

All this sounds innocent enough, but if we take a closer look at Tiborcz’s business dealings it seems that the son-in-law may have received quite a bit of coaching from the master at hiding his wealth, the Hungarian prime minister himself. When Tiborcz established his first real estate firms, he hid behind two friends who were registered as the owners of TRA Real Estate Kft. and BDPST Zrt. By now these two companies own eight high-priced pieces of real estate, among them former aristocratic mansions and valuable commercial property in Budapest and elsewhere. Some of these properties were jointly owned by wealthy Turkish businessmen or sold to characters like Ghaith Pharaon, the now allegedly deceased Saudi businessman of dubious reputation. Tiborcz hid so well that, as far as the Hungarian media was concerned, his ownership of these companies couldn’t be ascertained. Until now.

To the surprise of those who have been trying to find out more about TRA and BDPST, István Tiborcz gave an interview to Origo, which is now owned by the son of György Matolcsy, Orbán’s right hand and president of the Hungarian National Bank. The title of the article is misleading when it claims that “We investigated: István Tiborcz is owner in the real-estate development company.” After reading the article, one can be absolutely certain that the journalists of Origo investigated nothing. For one reason or other, István Tiborcz went to the pro-government internet site to offer the information, which he had tried to hide at least since the summer of 2015.

People who have been following Tiborcz’s business ventures and his secretive behavior as far as his business affairs are concerned couldn’t figure out what got into him. Why did he feel compelled to open up suddenly? On October 30, the very same day the Tiborcz interview appeared, the internet edition of Heti Válasz  came out with an article from which one could learn that András Bódis of Válasz had been pursuing the case of BDPST’s ownership for some time, without much luck. The “CEO” of the company, a certain Judith Tóth, didn’t even bother to answer Bódis’s inquiries. In fact, Tiborcz was so reluctant to divulge his own involvement in the company that BDPST initially gave up the idea of a capital raise when the Registry Court (Cégbíróság) made it clear that it would not register the firm unless the ownership of the company was released. After some hesitation, Tiborcz decided that he needed the stamp of approval of the Registry Court and relented.

It is hard to fathom why Tiborcz felt compelled to give an interview. One reason may have been his fear that Válasz would come out with some juicy story about its efforts to discover more about Tiborcz and his firm. The other reason might have been that, simultaneously with the Válasz project, Átlátszó was digging into the young couple’s purchase of a luxurious eleven-room, three-story house with servant’s quarters and a swimming pool in the most expensive part of the Kútvölgy section of Buda. The listing price of the property was 360 million forints (about $1.35 million). Therefore, in addition to his admission that he is the majority owner (meghatározó tulajdonos) of BDPST, he casually mentioned that he bought a house as a business venture that is in such bad shape that it is practically falling apart. So, before he does anything with it, the house must be completely renovated.

The modest living room

I’m afraid that truthfulness is in short supply in the extended Orbán family. As Antónia Rádai of Átlátszó found out, the purchaser of the property was not BDPST but István Tiborcz. Therefore, it is unlikely that this luxury property was purchased for resale. As for the state of the house, which he described as “life threatening,” I have my doubts after taking a look at some pictures that appeared when the property was being advertised for sale. It is, however, apparently true that men are working furiously on the building, even through part of the recent long weekend. I suspect that it is still not up to the standards of the demanding young couple.

A bathroom in a house which is falling apart and needs immediate propping up

The interview was really touching. Tiborcz spoke about the struggling firm, which is still not quite profitable. Here and there they make money when they manage to sell a piece of property, but the road ahead them is long and the work is hard. This sob story naturally was spread far and wide by the government propaganda outlets. Of course, let’s not fool ourselves. The majority owner of a company that has yet to turn a profit doesn’t buy a house that costs over a million dollars. We don’t know the full story of Tiborcz’s investments, and I doubt that we ever will.

November 2, 2017