Hungary's new government audits billions in state deals linked to private-equity funds
The incoming Hungarian administration has begun reviewing state contracts worth thousands of billions of forints that involve companies owned through private-equity funds, following new transparency rules.
Hungary’s newly elected administration has launched a comprehensive audit of state-related contracts amounting to thousands of billions of forints that involve companies controlled by private-equity funds. New rules effective 5 August require the true owners of these funds to be disclosed, with non-compliance resulting in bans on future public funding and contracts. Early actions have already hit businesses connected to billionaire Lőrinc Mészáros, including the loss of roughly HUF 60 billion in EU money for Opus Titász Zrt. and the withdrawal of HUF 33 billion for Gallicoop Zrt.
A private-equity-linked firm also had to repay over HUF 2 billion after alleged profit extraction. The government’s focus now turns to the 35-year motorway concession, estimated at HUF 24,000 billion, whose concessionaire MKIF Zrt. has a complex ownership involving seven private-equity funds linked to Mészáros and his partner László Szíjj. Transport Minister Dávid Vitézy and Prime Minister Péter Magyar have warned that the deal may be “public money devouring.” Additional reviews cover the 4iG Group and a waste-management concession operated by MOL Group.
