Tag Archives: Creda Consulting

The war between the Hungarian government and the NGOs continues

I’m sure that most readers of Hungarian Spectrum are familiar with the tug-of-war between the Norwegian and the Hungarian governments over the disbursement of the Norwegian Civic Funds. These funds are specifically designed to support non-governmental organizations that are involved with issues like democracy and human rights, gender and equal opportunity, youth and children’s issues, the environment, basic services to vulnerable groups, and the empowerment of minority groups, including the Roma. These issues are not exactly high on the priority list of authoritarian governments like the present one in Hungary. Hence the Hungarian government’s harassment of NGOs.

It was about a year ago, right after the election, that attacks on the Hungarian distributors of these funds began. Since that time I wrote three or four posts on the ups-and-downs of the negotiations between János Lázár, the minister in charge of the prime minister’s office, and Vidar Helgesen, the minister in charge of European affairs in the Norwegian government. The Norwegians, unlike officials of the European Union, have refused to cave in to Hungarian demands.

Why did I decide to return to the topic of the Norwegian Civic Funds? Because in the last three months two different independent firms looked over the Hungarian NGOs that are in charge of disbursement and found everything in order. The first firm the Norwegian government hired, Creda Consultinggave high marks to the consortium that handled the disbursement of the funds. It was praised for its “most innovative elements among the 15 NGO programs assessed across Europe.” I’m sure that Creda’s praise for “Ökotárs,” the fund operator, didn’t impress the Hungarian government, which over the last year came up with charges against it–“one for every season,” as Veronika Móra, director of Ökortárs, put it in a recent op/ed article in HVG.

In January the Norwegian government asked the accounting firm PKF Littlejohn to take a look at Ökotárs’s books because, among other things, the Hungarian government accused it of embezzlement. PKF Littlejohn found no evidence of any wrongdoing. Moreover, the accountants didn’t just look at the fund operator’s financial dealings; they also checked on the activities of several recipients of the funds. They didn’t run into any major problems.

After receiving the final results, the Norwegian foreign ministry announced that “Norway stands ready for a dialogue.” The question is whether the Hungarian government is willing to engage in such a conversation. One would think that after two independent expert assessments, the Hungarian government would give up and not risk losing the substantial amount of money the Hungarian government itself receives from the Norway Funds. But I’m not at all sure that the government in Budapest will retreat any time soon. I assume that Norway is satisfied with the way their funds are being dispersed to the NGOs and that a dialogue with János Lázár on this topic would not be a bargaining session. For Lázár to accept the current arrangement would mean defeat for the Hungarian government.

Veronika Móra in her op/ed piece rightly pointed out that the attack on Ökotárs and the Norway Civic Fund is only part of a general assault against NGOs in general. They are the victims of “a deliberate political strategy” aimed at their elimination. Viktor Orbán in his infamous speech that included a reference to “illiberal democracy” called NGOs “paid political activists.” Of course, there are “good NGOs,” those that are involved only in charitable activities. By definition, the Norwegian Civic Fund belongs to the “bad NGO” category. All of the targeted areas defined by the managers of the fund involve public policy. Lázár at one point accused the Norwegian government of deliberately trying to topple the Hungarian government. A few months later Orbán in an interview with Bloomberg talked about registering NGOs that receive funds from abroad. Just the kind of procedure Vladimir Putin introduced.

Normally, after a while, the Hungarian government retires from direct fights of this sort. For example, lately neither Lázár nor his assistant undersecretary, Nándor Csepreghy, speaks about the NGO issue. They assigned the job to the leaders of their own creation CÖF (Civil Összefogás Fórum/Civic Collaboration Forum), the group that organized the pro-government marches every time Viktor Orbán felt that he needed a show of force for his political survival. Although the leaders of CÖF hotly deny it, the organization is most likely financed by the Hungarian government.

CÖF’s “legal adviser,” Zoltán Lomniczi, Jr., who calls himself a “constitutional expert,” is now the designated spokesman for the government strategy. He is being touted as “one of the most eminent experts” on the subject. According to him, four-fifths of Hungarian NGOs are financed in whole or in part by George Soros. As for the causes these NGOs are involved in–the Roma, drug prevention, and the disabled, according to Lomniczi these are not the most burning issues in today’s Hungary. “The defense of mental hygiene” as a result of the negative influence of the media or the “disfranchisement of Hungarians” in Slovakia or in Serbia are causes that deserve attention. The “eminent expert” accused the Hungarian equivalent of the American Civil Liberties Union, TASZ, of not raising its voice at the time of the police attack on “innocent demonstrators” in 2006 October. In fact, it was TASZ who took up the defense of those who were the victims of unnecessary force.

Zoltán Lomniczi, Jr. listening to Veronika Móra at ATV's program, Csatt

Zoltán Lomniczi, Jr. listening to Veronika Móra on ATV’s program “Csatt”

Lomniczi’s recent preoccupation with NGOs prompted Egon Rónai of ATV to invite him and three other NGO leaders for a conversation on a program called “Csatt.” Veronika Móra represented Ökotárs and Miklós Ligeti, Transparency International. András Székely, an economist and teacher of religion, spoke on behalf of the “Három Királyfi és Három Királylány Mozgalom” (three princes and three princesses movement). The movement’s aim is to promote a higher birthrate to produce large families. I highly recommend taking a look at the program. Most educational.

Meanwhile, we can wait to see what the Hungarian government’s next move will be to “remedy” the situation with those pesky NGOs.