N

Hungary's former Socialist government lands the country an 18 billion HUF fine by European Commission

The EU has determined major discrepancies with relation to eight contracts concluded between 2003 and 2009. This is the second largest sum that Hungary must repay following the corruption scandal relating to the Metro 4 project

Hungary's former socialist government has landed the country an 18 billion HUF (58m EUR) fine by the European Commission over irregular public procurements relating to the establishment of the EMIR system.

“The European Union has determined major discrepancies with relation to eight contracts concluded between 2003 and 2009," a statement by the Government Communication Centre (GCC) said.

“During the course of the investigation it was determined that the state bodies responsible awarded Welt 2000 Ltd. and various business circles the operations of the IT system that managed 12 trillion HUF, in a manner that was contrary to the interests of the State of Hungary and constituted a serious breach of public procurement regulations," the statement continues, adding that “The Hungarian government must repay 18 billion HUF as a result of these irregularities”.

János Lázár, head of the Prime Minister’s Office, revealed that he had initiated legal action at the Chief Prosecutor’s Office against an unknown perpetrator with relation to the activities of Welt 2000 Ltd. in the period 2003-2009.

“This is the second largest sum that Hungary must repay following the corruption scandal relating to the Metro 4 project," The GCC added.

As revealed earlier this year, the former government also landed Hungary in hot water surrounding the Metro 4 project scandal.

The European Anti-Fraud Office (OLAF) had reviewed 400 billion HUF in concluded Metro 4 contracts, and inconsitencies were found in 272 billion HUF (880M EUR) worth of work, sources said. There were indications of five possible crimes at a total value of 166 billion HUF, and the EU is asking for the repayment of 59 billion HUF.