Tag Archives: General Electric

Viktor Orbán is losing his cool

Trump’s uncontrolled outbursts seem to be contagious. While in the past Viktor Orbán showed considerable restraint when giving interviews or answering opposition members of parliament, in the last couple of weeks he has given vent to his frustration and anger.

Friday, during his regular morning radio interview, he lashed out against the European Commission, repeating himself, calling the legal opinion released by the European Commission an object of derision, a document that one cannot discuss without laughing. If Hungary accepted this document, it would become the laughing stock of Europe. He went on and on. Then yesterday, he accused Ákos Hadházy (LMP), who has spent years fighting the endemic corruption of the Orbán regime, of corruption himself. Pressured by the European Commission and by Hadházy’s dogged pursuit of his government’s systemic corruption, Orbán no longer seems capable of exercising self-control.

I have been following Ákos Hadházy’s political career ever since he first appeared on the national scene. He reported on a local corruption case in Szekszárd, a small town, where he was a Fidesz member of the city council. Since then, Hadházy, now co-chair of LMP, has focused on uncovering corruption cases. Just the other day, he said in an interview that he had held more than 80 “corruption infos.” Once a week he stands in front of the cameras and reports on yet another horrendous case. Each of these cases involves millions if not billions of forints. Hadházy estimates that in the last seven years the “Fidesz clientele” stole about three trillion forints of the subsidies Hungary received from the European Union. In his assessment, all work performed is at least 30% overpriced.

Lately, Hadházy has been working on two cases, both involving healthcare. The first one was a program that was supposed to set up “mentor houses” for premature babies and their parents in Szeged, Kecskemét, and Gyula. A foundation was established for the purpose, called “I Arrived Early Foundation,” which received 1.2 billion forints from the European Union. Since it was such a large project, Hadházy asked for details. It turned out that less than half of the money was allocated to the program itself. The rest was designated for the maintenance of the foundation. Money was spent on most likely overpriced rentals, legal advice, laptops, telephones, several printers, and very high salaries for the “coordinators,” while the 40 mentors received only about 50,000 forints a month.

It turned out that two other very similar projects received about half the amount that “I Arrived Early Foundation” got, and they managed quite well. Mind you, they didn’t pay 50 million forints for “legal advice.” In fact, they got along just fine without it. While a methodology study cost the “I Arrived Early Foundation” 50 million, the other foundation managed to get one for 8 million.

Hadházy stirred up a hornet’s nest by investigating this particular foundation. János Lázár’s wife is one of the board members of the foundation, and Hadházy suspected that the unusually generous financial support given to the foundation was not entirely independent of Mrs. Lázár’s presence there. Soon after the “corruption info” in which Hadházy announced the foundation’s suspicious expenditures, he found himself in the crosshairs of Zoltán Balog’s ministry, which awarded the money to the foundation, and the Office of the Prime Minister, headed by János Lázár. Nándor Csepreghy, Lázár’s deputy, assisted by the government paper, Magyar Idők, led the attack. Magyar Idők published several articles accusing Hadházy of being a heartless man who compared these premature babies to newborn puppies. Hadházy, who is a vet in private life, did in fact compare the weights of some of these babies to newborn puppies, and he was quite accurate. A newborn puppy is about 500 grams, just like the smallest premature baby. Csepreghy, in defense of his boss, called Hadházy an “ignorant scoundrel.” Lázár at one point offered his wife’s retirement from the foundation, but as far as I know nothing of the sort happened. Naturally, the foundation explained away all of its expenses.

The second case was even more clear cut. The National Healthcare Services Center (Állami Egészségügyi Ellátó Központ/ÁEEK) issued a tender for several ventilators. General Electric and three Hungarian firms submitted bids. The Hungarian firms were actually just wholesalers, and their bids were a great deal higher than General Electric’s. The three Hungarian firms offered to sell the ventilators for a price between 1.7 and 1.9 billion forints as opposed to GE’s offer of 1 billion forints. ÁEEK tailored the tender in such a way that only one bidder could win the tender. Predictably, GE lost the bid, but the company decided not to take the decision lying down. The American firm turned to the Public Procurement Authority (Közbeszerzési Döntőbizottság), which ruled in GE’s favor. ÁEEK had to pay 50 million forints. Bence Rétvári, undersecretary in the ministry of human resources, subsequently denied that the procurement was rigged.

Ákos Hadházy addressing Viktor Orbán in Parliament / Source: ATV

The GE affair was the topic of Ákos Hadházy’s weekly corruption info. János Lázár seemed to agree with Hadházy that those who were involved in the case must be investigated. So, emboldened by Lázár’s reaction, Hadházy brought up the case in parliament yesterday when Viktor Orbán by house rules had to be present and was obliged to answer questions. Hadházy asked the prime minister who was right: János Lázár or Bence Rétvári. Orbán flew off the handle. He accused Hadházy of lobbying for GE. “A representative stands up in the Hungarian Parliament lobbying for a company. How much money did you receive for this? How dare you? How dare you lobby for a company in the Hungarian Parliament during an ongoing public procurement? Especially, on behalf of a foreign company. Now, I have been sitting here for many years, but I have not seen a case more corrupt than this, shame on you!” He also ordered an “investigation” of Hadházy right on the spot.

Hadházy doesn’t seem to be intimidated. He will sue Orbán for slander. Otherwise, he wrote a defiant note on his Facebook page in which he pointed out that Orbán, with his outburst, “kicked a three-meter self-goal” by calling attention to the fact that they want to steal billions from the “dying hospitals.” He said that Orbán’s claim of “an ongoing public procurement” is a lie since the Public Procurement Authority already closed the case. Otherwise, he is looking for the day when Orbán will have to apologize to him. Well, in his place I wouldn’t hold my breath.

October 10, 2017