Hungarian liquidation firms face fraud probe over dividend payouts amid failing Egyptian rail deal
A criminal complaint has been filed accusing three liquidated Hungarian companies of paying dividends while their finances were collapsing under the stalled Egypt rail contract.
A fraud investigation has resulted in a formal complaint to the NAV Criminal Directorate, accusing three state-appointed liquidators of illegal dividend distribution. The companies involved—Ganz-MaVag International Kft., Magyar Vagon Dunakeszi Kft. and Ganz-MaVag Invest Zrt.—were responsible for delivering 1,350 rail wagons, partly of Russian origin, to Egypt's ENR railway, but only 1,066 wagons were delivered before the contract stalled due to the Russia-Ukraine conflict and financing issues.
The liquidation process, ordered by the Budapest Metropolitan Court for October 2025, prompted a specialist audit of the firms' five-year financial history. The expert found that dividend payouts and other transactions between 2022 and 2024 reduced the companies' assets by tens of millions of euros, despite clear awareness of the project's difficulties. The complaint argues that these actions violated bankruptcy law by harming creditors. Negotiations between Hungary and Egypt continue, with three possible outcomes: a full settlement, delivery of 44 partially completed wagons from Dunakeszi, or a renegotiated deal at higher price or expanded scope.
Why it matters
The case highlights potential misuse of corporate funds during a high-value international contract, raising concerns about oversight and creditor protection.
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