Hungary raids criminal network over COVID-era ventilator procurement fraud

NAV ventilator procurement tax evasion money laundering Hungary

The Hungarian National Tax and Customs Administration (NAV) has launched a major operation against an alleged criminal network involved in the procurement of medical equipment during the COVID-19 pandemic. The investigation focuses on contracts signed in 2020 with the Ministry of Foreign Affairs and Trade and the National Health Supply Center for the delivery of 800 ventilators and 3 million medical masks from China, for which the state paid 15.6 billion HUF.

Authorities allege the network generated over 3 billion HUF in profits and evaded more than 660 million HUF in taxes by using a web of shell companies and issuing fictitious invoices for IT services. During coordinated dawn raids in Hungary and Austria, investigators seized or froze assets worth 1.5 billion HUF. One man was arrested in Austria under a European Arrest Warrant, and two others were detained in Hungary, while 11 others were questioned as suspects.

An international arrest warrant has been issued for Bálint Májer, the former CEO of OTT-One, who is believed to be residing in Indonesia. Another key figure, Gábor Kósa, the CEO of iSRV Zrt., is also being sought. Additionally, the National Bureau of Investigation (NNI) is conducting a separate probe into potential mismanagement, including overpricing and the usability of the equipment.

Entities

Austria · Bálint Májer · Gábor Kósa · Hungary · Ministry of Foreign Affairs and Trade · National Bureau of Investigation · National Center for Emergency Medicine · National Health Supply Center · National Public Health Center · National Tax and Customs Administration · Péter Szijjártó · State Health Care Supply Center

Claims

What the coverage asserts, and how many sources carry each claim.

[● 5 SOURCES] The NNI is investigating potential mismanagement and overpricing of the equipment. kecsup.hu · telex.hu · magyarnemzet.hu · srnnews.com · 24.hu
[● 21 SOURCES] The criminal network allegedly laundered over 3 billion HUF in profits. budapestkornyeke.hu · kecsup.hu · nyugatifeny.hu · 10perc.hu · pecsistop.hu · +14 more
[● 21 SOURCES] The network caused over 660 million HUF in tax losses to the state budget. budapestkornyeke.hu · kecsup.hu · nyugatifeny.hu · 10perc.hu · pecsistop.hu · +14 more
[● 9 SOURCES] The network used fictitious IT service invoices to evade VAT. budapestkornyeke.hu · kecsup.hu · 10perc.hu · www.blikk.hu · dailynewshungary.com · +2 more
[● 21 SOURCES] One man was arrested in Austria under a European Arrest Warrant. budapestkornyeke.hu · kecsup.hu · nyugatifeny.hu · 10perc.hu · pecsistop.hu · +14 more
[● 17 SOURCES] Authorities seized or froze 1.5 billion HUF in assets during the operation. kecsup.hu · nyugatifeny.hu · 10perc.hu · pecsistop.hu · www.blikk.hu · +11 more
[● 16 SOURCES] An international arrest warrant was issued for a leader believed to be in Indonesia. budapestkornyeke.hu · www.blikk.hu · dailynewshungary.com · hnonline.sk · magyarnemzet.hu · +9 more
[● 19 SOURCES] The state paid 15.6 billion HUF for 800 ventilators and 3 million masks in 2020. budapestkornyeke.hu · kecsup.hu · nyugatifeny.hu · 10perc.hu · pecsistop.hu · +13 more
[● 5 SOURCES] The National Bureau of Investigation (NNI) is investigating potential mismanagement, including overpricing and the usability of the equipment. kontroll.hu · www.eszakhirnok.com · kecsup.hu · srnnews.com · magyarnemzet.hu