Hungarian prosecutor's office referred allegations of fraud over nearly one billion dollar COVID ventilator purchases
Hungary's Ministry of Foreign Affairs has referred allegations to the prosecutor's office concerning suspicions of fraud in the purchase of 17,000 ventilators in 2020, with contracts valued at approximately 964 million dollars.
Suspicions of misappropriation and inflated prices in Hungarian ventilator purchases
Hungary's Ministry of Foreign Affairs has filed a referral with the prosecutor's office concerning possible fraud related to ventilator purchases made during the COVID-19 pandemic in 2020. According to Cotidianul.ro, the contracts under investigation total approximately 300 billion forints, equivalent to roughly 964 million dollars.
The announcement was made on Tuesday by Hungary's Foreign Minister, Anita Orban — who has no family relation to former prime minister Viktor Orban — stating that this is the first criminal complaint arising from an internal review process conducted within the ministry.
Nearly 17,000 ventilators purchased in the early months of the pandemic
At the centre of the investigation is the purchase of nearly 17,000 ventilators intended for Hungarian hospitals, through contracts concluded in March and April 2020. At that time, the Ministry of Foreign Affairs was headed by Péter Szijjártó, and the authorities invoked the urgency of the health emergency to waive normal public procurement procedures.
Preliminary findings by the ministry's current leadership show that some of the purchased equipment was in excess of actual need. Furthermore, the internal investigation raises suspicions that the prices paid for the devices were significantly higher than those justified by the market.
Suspicions of particularly serious financial damage
Foreign Minister Anita Orban stated that the information discovered during the reviews raises suspicions including misappropriation, alongside other possible offences. Hungarian authorities believe there could be particularly serious financial damage. The case is to be reviewed by prosecutors, who will decide whether there are sufficient grounds to initiate or expand a criminal investigation.
The referral also has a political dimension, as the purchases under investigation took place during Viktor Orban's government. The allegations made so far concern the manner in which contracts were executed and possible procedural irregularities; the existence of suspicions does not equate to establishing the guilt of those involved.
Context: accelerated procedures worldwide in 2020
The COVID-19 pandemic prompted governments around the world in 2020 to purchase medical equipment — ventilators, masks and protective materials — at an accelerated pace. The urgency led in numerous countries to simplified procedures and deviations from standard public procurement rules. In Hungary, the current reviews seek to establish whether these exceptional procedures were abused and whether the state paid unjustifiably large sums for equipment that was not needed in the quantities contracted.
Ministry announces that reviews continue
The Ministry of Foreign Affairs has stated that internal reviews are ongoing, meaning that Tuesday's referral could be the first of a series of cases submitted to prosecutors. Authorities are to examine other contracts concluded during the pandemic period, to identify any irregularities and to establish the responsibilities of those involved.
Source: Cotidianul.ro