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[POLITICS] · Hungary · 9 sources

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Hungary to terminate MKIF motorway concession amid corruption allegations

The Hungarian government has announced plans to terminate a 35-year motorway concession contract with the MKIF consortium, led by Lőrinc Mészáros and László Szíjj. Prime Minister Péter Magyar stated that the government will initiate criminal proceedings, accusing the previous administration of creating an arrangement designed to plunder national funds.

Transportation and Investment Minister Dávid Vitézy reported that the contract would have cost the state at least 23 trillion forints through 2057, averaging a cost of 77 million forints per hour. Vitézy highlighted that a 2023 contract modification, citing economic impacts of the war in Ukraine, added at least 5 trillion forints to state expenses. The ministry alleges that services were overcharged by 30 to 60 percent compared to market rates and that the contract violated both national and EU procurement laws by allowing the concessionaire to subcontract tasks without public bidding.

Further allegations suggest the contract allowed the consortium to subcontract work to businesses owned by associates of former leadership. The government aims to terminate the agreement while ensuring that ongoing motorway construction and operations are not negatively impacted.

Entities

Antal Rogán · Dávid Vitézy · Hungary · László Szíjj · Lőrinc Mészáros · MKIF · Peter Magyar

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