How Óbuda's public procurement redistribution worked according to testimonies
In the corruption case, the contractor involved and a former Socialist politician have given detailed accounts of how they divided the profits from district contracts.
How Óbuda's public procurement redistribution worked according to testimonies
The central figure in the Óbuda corruption case, the owner of Pannon Park Kft., gave detailed accounts to investigators of how the balance of power took shape in the distribution of district funds. According to Z. Zsolt, in late 2019, after the opposition won the elections, a three-person meeting resulted in a new agreement: they reversed the previous 70-30 per cent ratio, and henceforth the larger portion of the sum coming from him went to the Socialist side.
The testimony also revealed that during the 2014-2019 period, when the district was led by a government-party mayor, the Fidesz deputy mayor signalled to the Socialist representative that the budget was tight, and therefore supplier companies for municipal operations should be found that would channel back a portion of the contract payment. Gergő Czeglédy brought an existing construction company of his own into the deal, but had it registered under an acquaintance's name so it would not be openly linked to him. The politician argued that he regularly lost bids because of his party affiliation, and therefore needed a company that was formally independent but actually controlled by him.
Pannon Park has won billion-forint-value contracts in the district since 2013, including for the maintenance of parks, playgrounds and pavements. According to Z. Zsolt's claim, around 2015-2016 the Fidesz deputy mayor came up with an offer to help with the bid if in return the company would give him roughly one-tenth of its annual turnover, an amount of around hundred million forints. The contracts were awarded to Pannon Park and another company jointly, but the Czeglédy company had to be brought in as a subcontractor. According to the distribution of work, Pannon Park received fifty, the other company twenty, and the subcontractor thirty per cent.
According to Czeglédy, his company performed genuine tasks, but he regularly collected the profits and then split them with the Fidesz deputy mayor. The incumbent mayor denies knowing about the redistribution, but Czeglédy testified that they had reached an agreement as far back as 2006 with the local government-party leadership on sharing corruption proceeds. The ratios changed over the years: initially the minority side received 10-15 per cent, later thirty per cent, and after the change of power seventy per cent.
Source: HVG
Source: HVG