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[CRIME] · Hungary · 12 sources

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Philip Rákay's company under investigation for Rácalmás land deal

The Budapest Police Headquarters has launched an investigation into Rácalmás Greendustry Projekt Zrt., a company controlled by producer Philip Rákay, on suspicion of abuse of office and breach of official duties. The investigation follows a report by a private individual regarding a 2022 land transaction in Rácalmás.

In November 2022, Rákay's company purchased 42 hectares of industrial land near the Hankook Tire manufacturing plant. The company subsequently sold a portion of this land to the South Korean tire manufacturer and granted the company rights of first refusal on the remaining portion. According to the company's 2023 financial reports, the transaction resulted in a taxed profit of approximately 1.433 billion HUF.

Authorities are investigating whether the company obtained non-public information regarding Hankook Tire's planned expansion from government or other official sources. Philip Rákay has strongly denied all allegations, stating that his business decisions were based on publicly available information and that he did not receive any internal or state-held data. He has characterized the accusations as a political smear campaign and threatened to file criminal charges for false accusations if the investigation proceeds.

The case has also drawn public criticism from Ervin Nagy, the state secretary for culture, who criticized the scale of the profit in relation to local workers. Rákay has responded to these criticisms by calling the accusations a 'stomach-turning wave of slander' and a form of political persecution.

Entities

BYD · Budapest Bar Association · Budapest Police Headquarters · Budapesti Rendőr-főkapitányság · Ervin Nagy · Hankook Tire · Hungarian Bar Association · Hungarian Parliament · Ministry of Finance · Philip Rákay · Péter Szijjártó · Rácalmás Greendustry Projekt Zrt.

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