Tag Archives: Szekszárd

Intraparty affairs of the Hungarian Socialist Party (MSZP)

I decided to do some detective work inside the dark labyrinths of the Hungarian Socialist Party (MSZP) after reading a brief news item about plans by Zsolt Gréczy, spokesman of the Demokratikus Koalíció (DK), to sue MSZP’s local organization in Szekszárd. His charge is that it “spread the falsehood on its official Facebook page that [Gréczy] conducted negotiations with Kálmán Horváth and István Horváth, Fidesz politicians, in the Heinmann Winery on October 13, Friday, at 2:00 p.m.” Gréczy stated that he spent the whole day in Budapest and that he has never met or even heard of these politicians.

After doing some research on the local level, I came to the conclusion that this “storm in a teapot” is just one more manifestation of the division that exists in MSZP, a division that is so deep that it may lead to the demise of the party. This split spans the entire party, from ordinary voters and party members all the way to the highest echelons of the party hierarchy.

At first one might be inclined to look upon this incident merely as a case of mistaken identity. The so-called eyewitness who informed Ferenc Kurtyán, the chairman of the local MSZP organization in Szekszárd, was wrong and apologies would be in order. But once I looked into Kurtyán’s “literary activities” before and after the incident, I came to the conclusion that he is a member of a fairly large group among the local and national leaders who are convinced that the current MSZP leadership is digging its own grave by negotiating with Ferenc Gyurcsány’s Demokratikus Koalíció.

There is an internet news site called civilhetes.net which is, I suspect, a vehicle for those within the party who oppose negotiations with Gyurcsány. Kurtyán is a regular contributor. Just to give a sense of the ideological flavor of the site, here are two articles that have appeared on the news site: “Joint opposition in the districts will be a failure,” an assessment by Fidesz’s Századvég Intézet, and “The Gyurcsány plan,” a republished opinion piece by Tarski, a blogger, who is certain that negotiations with Ferenc Gyurcsány will serve only the interests of DK, which, without the help of MSZP, would never get into parliament.

Kurtyán, in addition to contributing to civilhetes.net, also runs the Szekszárd MSZP organization’s Facebook page, where he posts comments like “Why should MSZP change its candidate to the post of prime minister for a man with 17% popularity? To keep Orbán in power?” to which commenters added that no one wants to support Gyurcsány as MSZP’s candidate for the post of prime minister.

Discussing the election?–Ferenc Kurtyán’s artwork on Facebook

It was Kurtyán who posted the false story about Gréczy’s clandestine meeting with the Fidesz politicians on the Szekszárd MSZP Facebook page, which was subsequently embellished by civilhetes.net. Although Gréczy denied the story and threatened to sue, the site kept insisting on the truthfulness of this unlikely tale, despite the fact that civilhetes.net’s article had to admit that, upon checking the license plate of the “black Mercedes” which was allegedly used by Gréczy, it actually belonged to a dark green Toyota Corolla. Never mind, the article simply brushed the discrepancy aside and claimed that the change of license plate was a deliberate attempt by someone in the DK camp to mislead. Some commenters called the chairman of MSZP, Gyula Molnár, Ferenc Gyurcsány’s “csicskás” (orderly of an officer). Kurtyán eventually removed the montage he created from the Szekszárd site, but it can still be seen on his own website, although people kept urging him to remove it. Obviously, he feels very strongly that MSZP is making a dreadful mistake because its present leaders are seeking a compromise with the man who wants to destroy the party.

I should add that two very important MSZP members of parliament are from Szekszárd: the Harangozó brothers, Gábor and Tamás. I don’t know about Gábor, but Tamás is no friend of Ferenc Gyurcsány. During a television interview the reporter told Harangozó that Ágnes Kunhalmi, in one of her careless moments, said at a press conference that there will be a day when MSZP and DK will be one party again. Tamás Harangozó’s reaction was that if such an event ever happens, he will quit MSZP. All in all, I believe that the split between those who would like to make some arrangement with DK and those who fiercely oppose it is deep and most likely unbridgeable.

One must assume that István Nyakó belongs to the anti-Gyurcsány camp because, as spokesman of MSZP, he issued a sarcastic communiqué stating that “if we would file charges against DK after every abusive and wrongful Facebook comment, Tünde Handó [president of the National Judiciary Office] would have to set up a separate appellate court for all the hearings. MSZP has never done anything like it. But if Mr. Gréczy thinks that his word is not enough and he needs a court decision to state that he has never visited the Szekszárd winery, it’s his funeral—the court will decide.” A few hours later Gyula Molnár, the head of MSZP, fired Nyakó. Molnár must have felt that strong action was needed to put an end to the activities of those who refuse to accept the leadership’s decision concerning negotiations with the other opposition parties.

But civilhetes.net is continuing the fight and refuses to accept the truth that whomever the sole informer saw, it was not Zsolt Gréczy. The whole case by now is being portrayed as a conspiracy where the top leadership of MSZP is conspiring with DK to clear Gréczy’s name while Nyakó “has been condemned to death” by the MSZP leadership. It is indeed a very ugly game, and one has the nagging feeling that the grand old socialist party is starting to crumble.

October 18, 2017

Blueprint for character assassination: The case of Ákos Hadházy

In a piece I wrote for the Christmas issue of Népszava I described Ákos Hadházy as “a very sympathetic man who unfortunately has chosen the wrong party.” It now seems that his colleagues in LMP, with substantial help from Fidesz, are doing their best to end his career as co-chairman of his party.

Let’s start with Hadházy’s “friends” within LMP. On January 4 Magyar Idők reported that Antal Csárdi, LMP’s candidate for the mayoralty of Budapest in 2014, will challenge the newly elected Ákos Hadházy. Csárdi explained that he had been toying with the idea of running for the co-chairmanship right after the resignation of András Schiffer but decided against it, wanting to see in what direction Hadházy would take the party. Obviously, Csárdi doesn’t like Hadházy’s friendly relations with the other opposition parties and thinks that “the independence of the party should be more strongly emphasized.” A few days later, in an interview with András Stump, he was even more explicit. As a faithful “Schiffer man,” he stressed that the “independence of the party” is “the legacy of András Schiffer” and must not be abandoned. “When Ákos keeps talking about dialogue with the left-wing parties, when he doesn’t unequivocally exclude cooperation with them, he does harm to LMP.” The leading lights of LMP, including András Schiffer, obviously want to get rid of Hadházy.

Although Csárdi in his interview said that he doesn’t consider Hadházy’s anti-corruption work all that important, Fidesz thinks otherwise. Shortly after the holidays Origo came out with articles that tried to blacken Hadházy’s name. The first stab was a dud, but about two weeks later “investigative journalists” in the pay of the government tried again. I guess they needed time to gather all sorts of unsubstantiated stories about the “Hadházy clan,” as they call Hadházy and his family.

First, let me summarize the bare facts. Hadházy’s father, Árpád Hadházy, is also a veterinarian. He works as a toxicological specialist for the agribusiness Szekszárd Zrt. owned by Baron Georg (György) Twickel, son of the late Countess Mária Terézia Zichy. In addition, he is the county chairman of the Hungarian Chamber of Agriculture.  He grows wine on 6.5 hectares, which he purchased over the years, some of which he planted himself.

Origo presumably stumbled on an article in the local online news site teol.hu, which reported that the Szekszárd chairman of Jobbik had accused the elder Hadházy of buying land through proxies. The initial Origo story was feeble. The story was not really about Hadházy but about his boss Georg Twickel, who apparently is known around Szekszárd as “the green baron.” He was the one who was accused of buying land at auctions, apparently using his employees as cover. The only connection Origo could come up with between Ákos Hadházy and Twickel was that Hadházy and his wife were “friends” with a certain Mrs. Gescheidt on Facebook, whose husband “was connected” to Twickel.

Four minutes after the publication of this article, Ákos Hadházy replied. He stated that he has “no connection with von Twickel, a dual Hungarian-German citizen,” who is his father’s employer. As far as he knows, Twickel and his mother had the right of first refusal on those lands that have now been auctioned off to others under the program “Land for Farmers,” and therefore Twickel has legitimate grievances. Otherwise, Hadházy reiterated that his father still has only 6.5 hectares. Well, one couldn’t do much with this story.

Ákos Hadházy

After two weeks of silence, the onslaught, such as it was, began. First, on TV2’s news, called “Tények.” That’s a real laugh since “tények” means “facts” in Hungarian, and ever since Andy Vajna purchased TV2 Tények has become notorious for distorting the facts. TV2’s shot across the bow missed its target by a mile. The most it could come up with was two young employees of Twickel who were allegedly used as proxies for Twickel’s purchases. As an attack on Hadházy, it was totally beside the point.

Ripost then came out with an article that dwelt on Hadházy’s “darned expensive hobby.” He has a pilot’s license and “flies here and there with a private plane, which is harmful to the environment.” This is how he provokes his party. Moreover, the only way Hadházy has enough money for his hobby is from his family’s shady business practices. This accusation was completely unfounded. In fact, those who watched “Private Sphere” on ATV could see Hadházy pulling out a rickety-looking little plane built in 1965 which new cost about 50 million. It isn’t even his; it is owned by a club. Hadházy only rents it for about 20,000 forints an hour here and there.

By yesterday Origo discovered that the real culprit of the Hadházy story is Ákos’s mother. “At the end of 2015 she wanted to acquire 150 hectares of land,” which it seems she never got, but it still cost her 30 million forints to bid for the property. Moreover, Mrs. Hadházy’s lawyer was also the lawyer of “the right-hand man of Georg Albert Freiherr von Twickel, Tolna County’s green baron.” And, as if it mattered at all, the article pointed out that this “right-hand man” bought 223 hectares for almost 617 million forints. Of course, none of this has anything to do with either Mrs. Árpád Hadházy or her son. The journalists of Origo were also extremely sloppy in trying to piece together a bunch of lies about the Hadházy family. For example, they misunderstood Ákos’s comments about the right of first refusal of Twickel and his mother and attributed it to Ákos Hadházy and his mother. Since the LMP politician considers the whole program of “Land to the Farmers” a sham, they said, he has completely discredited himself because he and his family think of themselves as victims of the program.

This article also tried to prove that the Hadházys had lied about the size of their landholdings. Instead of 6.5 hectares, they actually own 14 hectares. Origo also found 6 hectares of forest in the possession of Mrs. Árpád Hadházy. Thus, Origo concluded, just in 2015 and 2016 the Hadházy family spent 50 million forints on land purchases, “and if Mrs. Árpád Hadházy had managed to buy 150 hectares they would have had to borrow 270 million.” But, of course, she didn’t.

That was not enough. Magyar Idők found a neighbor whom Ákos Hadházy allegedly wanted to turn out from his apartment by forcing him to pay half a million forints for work done on the roof. Of course, the poor man had no money to pay, at which point the heartless and ruthless Hadházy couple simply turned off the water supply to the old man’s apartment.

At this point Hadházy explained a few things on his Facebook page.  “Unfortunately neither Origo nor TV2 could show me where my father’s 50 hectares are.” His mother did inherit 4.5 hectares of land in Hódmezővásárhely 20 years ago but left it in the possession of of his grandmother. The forest turned out to be a black locust (akác) grove which indeed his parents bought last year and which he didn’t know about. And, he added with a smiley face, “they caught me.” As for the neighbor, the roof had to be fixed and the owner of a small apartment in the building refused to pay his share. Hadházy offered him a contract for support for life in lieu of the price of his share of the cost, which he didn’t accept. As for the water, the Hadházy’s bathroom was being modernized and the plumber closed off a pipe which, as it turned out, supplied the old man’s apartment. As a result of this mistake it was also discovered that Hadházy’s neighbor had been paying nothing for water for the last ten years since the pipe was connected to the Hadházy’s water supply. At this point, Hadházy paid for the work to restore water to the neighbor’s apartment. As it stands, the Hadházys are still paying for the man’s water.

I know this has been a long story, but it tells a lot about the methods of the Fidesz government media. Hadházy is getting under Fidesz’s skin. He is dogged and refuses to give up on his corruption cases, which are getting closer and closer to the top. Therefore, somehow he must be shown to be corrupt himself. That seems to be a tall order.

January 12, 2017

Guide book to embezzlement of European Union subsidies. Part I

Today and tomorrow I will look at three recent corruption cases in Hungary, all of which involve money received from the European Union.

Two Hungarian politicians are currently spending a lot of energy uncovering corruption cases. One, Benedek Jávor (PM-Együtt), is a member of the European Parliament who sits with the Greens. The other is Ákos Hadházy, a veterinarian from Szekszárd who began his political career as a Fidesz member of the city council. Once the corruption of the Fidesz members of the council became apparent, he resigned his post and quit the party as well. He is now a member of LMP.

Both men are doing a splendid job. Jávor is in an infinitely better position than Hadházy because he receives information from the EU and its anti-corruption arm, OLAF. Jávor has made a real impact, especially concerning the Paks II nuclear power plant and its most likely illegal financing. Hadházy, on the other hand, is at the mercy of the Hungarian authorities or the police who simply ignore his inquiries and/or criminal complaints. Although he has been working tirelessly on dozens of cases, he is unable to show any results. Hadházy is now hoping that if he and his fellow LMP politicians regularly make corruption cases public, they will be more difficult to ignore. Thus, every Thursday he will reveal one case. He claims that he has enough cases to keep “Corruption Info” going for at least a year.

Today I’ll focus on Hadházy’s first case, presented at the launch of “Corruption Info.” I will devote tomorrow’s post to Benedek Jávor’s successful efforts in Brussels.

Ákos Hadházy arrived at the press conference with a recording of a conversation between Rezső Ács, the mayor of Szekszárd, and Péter Máté, a Fidesz member of the city council. The conversation took place in 2012. It was about the decision of the city council to entrust a particular job to a company that charged considerably more than its competitors. Here is a portion of the conversation:

-Eighty-five percent support!

-Yes, yes, but this is a good offer. The price is high, but it can be done in such a way that the person who does it will finance the whole thing and therefore it will not cost us anything.

-Is it overpriced?

-Yes. This is how the tendering procedure works today in Hungary. He comes and tells me that he will do everything. He will win the tender, but he will bring everything. And if not, then he will go to the city next door. Because he has a quota which he can divide. This is how it is behind closed doors.

I’m sure that we all need an explanation of this cryptic description of the process. First of all, the ministry responsible for the tender has a certain number of businesses that have a chance of receiving these EU jobs. Each of them is allotted a quota, so if Szekszárd doesn’t grab the opportunity, the owner of the company will go to the next town. And if Szekszárd makes the mistake of awarding the tender to someone else, they most likely will either get no funding or they will have to put down 15% before the work begins. But one of the privileged companies will promise “to do everything”:  the application as well as the work itself. Only large, well-off companies are able to participate in this game because they have enough capital to wait for payment until the very end of the project, when the money from Brussels arrives. In the case of the project discussed on the tape, the company who did the project charged 115 million forints as opposed to 60 million, which would have been the price without the ruse devised by the Hungarian ministry officials and their corrupt business associates. By the end, with overruns, the cost turned out to be 130 million, paid in full by the European Union.

Ákos Hadházy at his first "Corruption Info"

Ákos Hadházy at his first “Corruption Info”

According to Hadházy, what’s going on are criminal acts of a mafia-like network that reaches and is perhaps even orchestrated by the ministries. He mentioned the prime minister’s office and the ministry of human resources as the main sources of this criminal activity. Apparently, 12 trillion forints worth of tenders subsidized by the European Union are offered by these two ministries.

The reaction of the prime minister’s office was typical. The real culprit is Ákos Hadházy, who sat through this discussion and kept the recording secret instead of going to the police immediately after the discussion took place. Thus, Hadházy is an accessory to a criminal act. According to the spokesman of the prime minister’s office, LMP, instead of holding weekly press conferences, should go to the police immediately and report all suspicious cases they know about.

The prime minister’s office underestimated András Schiffer, co-chair of LMP, who although not my favorite is a very good lawyer. Naturally LMP made sure that everything was professionally prepared. First of all, as soon as the project was finished and paid for, Hadházy filed a criminal complaint concerning the case. That was two months ago. Since then he received a letter from the police saying that they could not find any reason to investigate the Szekszárd case because they found nothing that would indicate abuse of office or misappropriation. However, the police sent the case over to the National Office of Taxation and Customs (NAV). The case bounced back from NAV, which stated that the case has nothing to do with budgetary fraud. It is a case for the police.

Rezső Ács, the Szekszárd mayor, went further. He blamed the socialist-liberal administration for the city council’s decision to offer the job to a company in 2012, two years after Viktor Orbán’s Fidesz won the election.

Tomorrow I will relate stories of criminal activities committed by the Hungarian government in its direct dealings with the European Union.

To be continued

January 29, 2016

How to renovate a science lab in Hungary using EU money

A few weeks ago HEC Paris (École des hautes études commerciales de Paris) launched its first “Massive Online Open Course” entitled “Understanding Europe: Why It Matters and What It Can Offer You.” The professor, Alberto Alemanno, is a young, enthusiastic Italian who recounts all the wonderful things the European Union can offer to its citizens. Indeed, the list is impressive. But anyone who is at all familiar with “reality on the ground,” let’s say in Hungary, knows how all those good intentions can be abused. Take the case of a small town in Hungary that received a relatively small grant from the convergence money the country gets from Brussels.

The readers of Hungarian Spectrum have already encountered the hero of our story. On May 1, 2013 I gave an optimistic title to that day’s post: “Greed might be the undoing of Viktor Orbán and his regime.” In it I wrote about two possible corruption cases. One was the allocation of tobacconist concessions in the town of Szekszárd, the county seat of Tolna County. The other was possible fraud in Lajos Simicska’s Közgép, the company that received about 75% of all government contracts financed by Brussels. Of course, I was naive. Although the case of Szekszárd was absolutely clear cut, there were no consequences of the revelations. As for the second case, I guessed wrong: the suspension of EU funds had nothing to do with Közgép.

The hero in Szekszárd was Ákos Hadházy, a veterinarian who had served on the city council representing Fidesz. It was he who discovered that the Fidesz mayor and his colleagues had the list of applicants for tobacconist concessions in Szekszárd and singlehandedly decided the winners: friends and relatives, and people who sympathized with Fidesz. I detailed Hadházy’s struggle with his conscience that eventually led him to HVG, which published the story.

Hadházy subsequently left Fidesz but decided to remain in politics. He eventually settled for LMP and today is representing this party on the Szekszárd city council. Our veterinarian continues to keep his eyes and ears open, looking for possible corruption. He even started a blog, szekszardihetkoznapok.blog.hu. It was here that he published his latest findings about the fate of monies received from the European Union.

The Béla I Gymnasium needed a new chemistry-physics lab. This project involved tearing down a wall between two smaller classrooms to make the new lab 155 m². They also created a room for equipment, laid linoleum down on the floors, and supplied the desks with gas pipes, electricity, and water. The cost was 157 million forints or €518,811.74. As Hadházy rightly pointed out, from that amount of money one can build a nice new house.

The science lab at Béla I Gymnasium, Szekszárd on the opening day

The science lab at Béla I Gymnasium, Szekszárd on opening day

Here is a list of the items that money was spent on. The town paid €21,000 for advice on writing the grant application. Another €6,000 was spent on “planning and technical supervision.” €59,000 went for IKT (információs és kommunikációs technológiák) which included 2 intelligent blackboards, 2 simple blackboards, voting software for 40, a projector, and 4 laptops. Hadházy checked the prices of these pieces of equipment and found that one could buy them for half the price. The town also needed a feasibility study, costing €16,524. Hadházy had difficulty interpreting the item “creation of pedagogical and professional concepts,” which was €21,500. After all, the experiments the students have to conduct can be found in the textbooks; one does not have to develop new concepts for them.

But we are nowhere close to the end of the list. €66,000 was spent on a “multimedia presentation package.” That involved the performance and description of 100 experiments and their representation on videos.  Another €66,000 was needed for “digital material” on chemistry, biology, physics. Almost €66,000  was spent on paper, telephone, and dues. A hefty €51,000 was spent on software that helps allocate space for the different classes in the lab. The project management team received €66,000. And finally €53,000 was spent on outreach, marketing, and the opening day. At the opening there were several speakers, including Rózsa Hoffmann and the local head of the Klebersberg Intézet. There were couple of open house days for students where modest refreshments–coffee, soft drinks, biscuits–were served. Hadházy points out that these kinds of projects are underway throughout the country and the waste is staggering.

As HVG noted in a follow-up article, this particular Szekszárd project by itself is small potatoes; it is just one of 52 projects currently in progress. The entire cost of these projects is borne by the European Union. As one of the Fidesz members of the Szekszárd city council indignantly told Hadházy when he complained about the exorbitant cost, nothing terrible happened here because after all “it did not cost Szekszárd a penny.”

Since then the lawyers of LMP decided that the Szekszárd case warrants further investigation. So, LMP asked János Lázár to look into the case. A strange person to ask for help. After all, it is János Lázár who is responsible for the dispersion of EU grants, and surely it is his staff who oversees the projects. So, if they don’t find it excessive to spend €418,811.74 s on a very ordinary looking science lab then surely they will not investigate either this case or any of the many similar ones. As for the beneficiaries of these contracts, the city fathers, mostly affiliated with Fidesz, choose the winners. Out of the fourteen-member council there are only five opposition members (two LMP, two MSZP, and one Jobbik). The majority makes sure that their friends and acquaintances receive the inflated contracts.

I don’t know what happens in Brussels. Does anyone there find these figures excessive or do they just hand the money over without asking any questions? Perhaps they should take a more serious look at what is happening to the money they so generously give to their poorer neighbors.