Competition law concerns: police investigate 400 million forint Orosháza development project that never came to fruition
The Békés County Police Headquarters has launched an investigation into a 2019 public procurement procedure in Gyopárosffürdő. The 400 million forint development project was never completed, and EU funding must be repaid.
Police investigation into Orosháza conference centre development project
The Economic Protection Department of the Békés County Police Headquarters has ordered an investigation into suspected anti-competitive conduct by an unknown perpetrator regarding a 2019 public procurement procedure in Gyopárosffürdő, according to economx.hu.
The authority confirmed on Thursday to the MTI that the investigation was ordered on 24 September following a complaint filed by the Orosháza municipal authority on 24 August. According to the town's statement, the review of documents revealed circumstances whose clarification warranted criminal proceedings.
Police are investigating suspicions of anti-competitive conduct constituted by collusion or concerted practice in the procurement procedure. The project in question was to have been implemented in the 2014–2020 EU development cycle under the Territorial and Settlement Development Operational Programme (TOP).
The then Fidesz-led municipal authority of Orosháza secured 400 million forints in support for the holiday resort known for its thermal water. According to the plans, a two-storey building was to house a conference centre, community space and a 3D cinema; the development also included green space rehabilitation and car park renovation.
In January 2019, the municipality signed a contract with Maxicargo Kft., a Budapest-based company, to carry out the work, which the statement identifies as an enterprise engaged in road freight transport and forwarding services. The contractor's fee excluding VAT was 295.55 million forints; at 27 per cent tax, this amounts to approximately 375 million forints. The town also provided its own funding for the project.
The regularity of the procurement was previously examined by the Public Procurement Committee, which found that the municipality had violated the rules governing the preparation of the procedure, and that at the first contract modification, both parties – both the contracting authority and the contractor – had breached the law. Subsequent modifications to public procurement contracts are subject to strict conditions, as a significant change could override the original terms of the call for competition.
The development ultimately did not go ahead. The representative body, which is no longer Fidesz-led, terminated the project in March 2024. Since the EU funding received for the uncompleted development must be repaid, Orosháza faces a payment obligation of several hundred million forints.
The town's financial situation is under pressure from other burdens. According to an Index report from April, Orosháza signalled in spring that it would not pay the solidarity contribution, and due to irregularities in a cycling route it must refund approximately 200 million forints. The Hungarian State Treasury appointed a budget commissioner to the settlement for one year. The Gyopárosffürdő spa complex closed almost entirely in January 2025 and was only able to reopen during the summer with civil collaboration.
Source: Google News HU — Crime (hu)