Buda Central District Court orders detention of György Matolcsy, former MNB governor
Buda Central District Court has ordered one month's pre-trial detention for György Matolcsy, the former central bank governor, on suspicion of economic fraud and use of forged private documents.
György Matolcsy placed in one-month pre-trial detention
Buda Central District Court ordered one month's pre-trial detention for György Matolcsy, the former central bank governor, on Friday, according to Anna Madarasi, spokesperson for the Metropolitan Court of Justice, as reported by mti.hu. The former governor of the Hungarian National Bank is suspected of committing the offence of economic fraud causing significant financial loss and the misdemeanour of using forged private documents.
The court found the risks of flight, concealment and tampering with proceedings to be justified, and saw no opportunity to apply milder coercive measures. Anna Madarasi stated: in the opinion of the panel, there was no doubt either regarding the well-founded suspicion of the crime or regarding the financial loss caused.
Grounds for the decision
In its detailed reasoning, the court stressed that, despite the suspects having been aware of the investigation for an extended period, there were reasonable grounds to assume they could continue to jeopardise the effectiveness of evidence-gathering – through witness intimidation or through coordinated efforts to destroy material evidence.
In connection with the danger of reoffending, the court pointed out that the subject matter of the investigation is an investment scheme based on a complex corporate network and personal interconnections, the result of which was the crime causing financial loss. The suspects, after the commencement of proceedings, continued these activities in an organised and conspiratorial manner. The court also emphasised that the high penalty that could be imposed in itself increases the risk of flight.
The PADME foundation and the sham contract
According to a statement by the prosecution on Wednesday, a fictitious securities lending agreement was concluded on 28 February 2025 – on Matolcsy György's second-to-last working day as central bank governor – by the Central European III Private Equity Fund represented by Optima Investment Ltd. and Quartz Investment Fund Manager Ltd. The real purpose was to transfer control over the assets of the PADME Foundation to a circle of persons over whom Matolcsy retained influence after his central bank governor's mandate expired, and through whom he and his son could make investments for profit.
The former MNB governor was taken into custody on Wednesday and was questioned as a suspect on the same day.
Arrest warrant and appeal
According to the spokesperson's statement, the prosecution has proposed the issuance of a European and international arrest warrant against Matolcsy Ádám and György Stofa, the head of the company managing the assets of the MNB foundations; the court's decision on this is pending.
The order regarding detention is not yet final: the suspects and their defence counsel have filed an appeal. The identification of assets connected to the suspects and the involvement of the persons associated with the case in proceedings have not yet been concluded, and furthermore, another criminal proceeding is ongoing against György Matolcsy.
Source: Google News HU — Crime (hu)