Tag Archives: Gizella 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