Hungary: indictment for unauthorized requisition of EU subventions

29/09/2020

Original press release (in Hungarian)

Summary in English

In a criminal case launched on the basis of the judicial recommendation of the European Anti-Fraud Office, the Metropolitan PPO has submitted an indictment for unauthorized requisition of EU subventions and moved to impose imprisonment on the perpetrator.

According to the indictment a 66 years old man and his daughter – who did not know about the fraudulent nature of the latter transactions – owned a fishpond. The man decided to swindle money from the European Maritime and Fisheries Fund to develop the fishpond. The reconstruction works of the fishpond were planned to be carried out by the company of this man, but he held back this information from the authorities, since this could have been a disqualifying reason during the assessment of the applications. Nevertheless in July 2009 and in 2011 the man submitted two applications to the competent authorities and received more than HUF 373.000.000 (approx. EUR 1.065.000) in more cyles between 2010 and 2014.

OLAF investigated these subventions and issued judicial recommendations towards the Office of the Prosecutor General of Hungary. The HU prosecution service – although there is no such legal obligation – launches investigations on the basis of every OLAF judicial recommendation and did that in this case as well. As a result of the investigations carried out by the Hungarian National Tax- and Customs Office the Metropolitan Chief PPO submitted an indictment to the Metropolitan Court of Justice against this man for budgetary fraud causing extraordinary damage. In the indictment the prosecutor moved to impose imprisonment, a fine, the prohibition from public affairs and managing a company as well as the confiscation of his properties in accordance with the damage caused.