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HUNGARY

 

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Transparency International’s corruption rank for this country in 2000=32, corruption perception index =5.2

 

In Hungary, bribes make some doctors more equal than others. It has been reported that Surgeons and gynecologists receive far more bribes than their colleagues from patients ready to pay for an extra bit of medical attention in state hospitals. In the cash-strapped state healthcare system, most doctors live on salaries just above the average gross monthly. (Agence France Presse 12 Oct 2003 summary by Sherldine Tomlinson).

 

Education Ministry scandal. Lajos Sari, who is the undersecretary of the Ministry of Education, resigned from his post because of suspicions of abuses. Balint Magyar who is a minister also accepted the offer of resignation. Magyar said that the internal examination found Sari affected in the case of the tender by the National Vocational Training Institute though the law was not violated. Karoly Herenyi, the  faction leader of the Hungarian Democratic Forum urged the resignation of Magyar as his Ministry was affected in many similar cases of corruption (Magyar Nemzet Jun 06 2003 summary by Sherldine Tomlinson).

 

DRAFT ANTI-CORRUPTION LAW PACKAGE OUTLINED It's reported that Hungarian anti-corruption law package called "see-thought pocket programme" may be submitted to parliament December this year. It's said that regulations on the foundation of state owned companies would be made stricter and State Audit Office, ASZ is allowed to follow the use of public funds from the Treasury right to the final users.  (BBC Monitoring Service, 11 Nov 2002, summary by Hanh Vu).

 

FORMER SMALLHOLDER DEPUTY SENTENCED FOR BRIBERY It was reported that the Budapest Metropolitan Court sentenced former Smallholder parliamentary deputy Zoltan Szekely to six years imprisonment on two counts of bribery and dereliction of duty and banned him from engaging in public affairs for 10 years.The court also ordered Szekely to pay 458,697 forints ($1,740) in court expenses. Szekely was charged with attempting to extort money allocated under a sewage contract from the mayor of Emod in 1999. He was also caught in 2000 for taking a bribe from an entrepreneur.  (Radio Free Europe/Radio Liberty 28 May, 2002 summary by Sherldine Tomlinson).

 

POLICE INVESTIGATES OPPOSITION CANDIDATE ON SUSPICIONS OF PROFITEERING IN A REAL ESTATE DEAL.  Hungary’s Socialist Party candidate Peter Medgyessy is under investigation by the police over alleged benefits that he received in a 100,000- dollar lobbying contract with a real estate developer. He is said to have profited in return for swaying a local mayor to award the contract for a five-star hotel in central Budapest, to the developer concerned. Medgyessy has denied the allegations and launched a defamation suit against the two local government dailies which first reported the allegations in1998.    (Hungary Today, December 12, 2001, summary by Aruna Balakrishnan).

 

OPPOSITION PARTIES ACCUSE THE GOVERNMENT OF MISUSING PUBLIC FUNDS FOR FUNDING THEIR ELECTORAL CAMPAIGN. The opposition Socialist Party has objected to the fact that the government and major coalition party, FIDESZ, has used funds from the National Image Center, to buy full page ads on 7th December in four national papers and on 8th December in 20 other county papers to publish an ostensible “Parliamentary Report”, which was essentially a government campaign. The Independent Smallholders’ Party Deputy Chairman has also deplored the act. (Radio Free Europe, December 10, 2001, summary by Aruna Balakrishnan).

EMERGENCY LEGISLATION ON MONEY- LAUNDERING TO BE INTRODUCED. Hungary was the only member of the Organisation for Economic Co-operation and Development (OECD) that was amongst the 19 states which the Financial Action Task Force (FATF), also an agency of OECD, had hauled up for weak anti- money laundering standards. The FATF campaign, which has caught on steam after the September 11th attacks mentions that terrorists and criminals make use of secretive channels in the country. In response Hungarian Finance minister has said that an emergency legislation would be introduced this month in parliament which would be effective from January first. He said that the legislation would cover financial institutions, banks, antique dealers, lawyers, accountants, property dealers and customs agents, making it mandatory for Clients to report the source of big cash transactions. For Hungary, which is pursuing a European Union membership, this has come as an embarrassment and it hopes that these urgent measures to revert to international standards would remove it from the blacklist.      (Financial Times, November 2, 2001, summary by Aruna Balakrishnan).

 

OFFICIALS REACT TO INTERNET WEB SITE CLAIMS OF BRIBERY. An internet website called STOP alleges that there was bribery involved in the efforts by the Defence Ministry to procure fighter planes.  The Bureau of National Security has no information about this claim appearing on the website.  (Hungarian News Agency (MTI), August 9, 2001, summary by Barbara Gray).

 

Financial Action Task Force (FATF), international body against money laundering has ADDED this country to its Blacklist.(Wall St. J. June 22, 2001, p. A3).

 

BUDAPEST. Hungarian Prime Minister Viktor Orban stepped into to sort out allegations of corruption against the Independent Smallholders' Party, a member of his three-party ruling coalition. The Independent Smallholders' Party has been hit by a series of corruption allegations, including charges that the party chief, Jozef Torgyan, has built a series of luxury mansions in Budapest at a cost far beyond his legal means. (Europen Internet Network, January 31, 2001, summary by B. Gray).

 

BUDAPEST Parliament undecided about report on corruption that deals with police contact with mafia. (Hungarian TV2 satellite service, December 13, 2000, summary by B. Gray).

 

MEMBERS OF PARLIAMENT ENTER IN FIERCE DEBATE ON CORRUPTION. According to Ildiko Lendvai, deputy head of the Socialists' [HSP] parliamentary floor group, the ruling parties used public money to strengthen their own power or they just spent it on themselves. The Justice Minister of Hungary, Ibolya David, replied on behalf of the government and said that those who were guilty had already ended up in court in the previous and current term. The Justice minister also said that efforts were under way in the legislative and judicial spheres "to create a public life, which is free of corruption". (Source: Central Europe Online, BBC monitoring, November 29,2000, summary by Pavlidis George).

 

BUDAPEST -  A Hungarian parliament member belonging to the

 conservative ruling coalition has been arrested after being caught in

 the act of receiving $65,600 from a businessman in a Budapest

 Hotel. The detained politician, Zoltan Szekely, head of a

 parliamentary commission controlling public acquisitions, has

 denied any wrongdoing and claims he was the victim of a set up.

 (Hungary Today, October 19,2000. Summary by Fabian Camacho).

 

 

 Hungarian parliament aims to overturn image of institutional

 corruption (Central Europe Online/Hungary Today, 25.8.00,

 http://www.centraleurope.com/hungarytoday/news.php3?id=192172)

 Headline, 25-AUGUST-2000, Link may not work after a few days.

 

The OECD anti-Corruption report for Hungary can be found at http://www.oecd.org/daf/nocorruption/report.htm

 

The Index of Economic Freedom (by Driscoll-Holmes-Kirkpatrick) for 2001 places Hungary in the “Mostly Free” category with a rank of 42 (Ranks range from 1 for Hong Kong to 155 for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation analysis indicates that countries free from economic regulation are less corrupt. After allowing for some exceptions by 20% trimming, the correlation is near 0.9.

 

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Last Updated:
7 February 2007