Calls for Resignation Amid Financial Uncertainty at Kecskemét University Foundation
Allegations of mismanagement lead local opposition to demand accountability from Fidesz leaders in Kecskemét.
In Kecskemét, local opposition leaders have called for immediate explanations and resignations from city officials affiliated with the ruling Fidesz party following the revelation of potential financial mismanagement involving approximately 130 billion forints linked to the local university.
This situation has arisen after an investigation by the State Audit Office (ÁSZ) initiated a complaint regarding the Pallas Athéné Domus Meriti Foundation, which was established by the Hungarian National Bank.
The audit has raised suspicions of crimes affecting economic management, which prompted further scrutiny of the Neumann János University Foundation.
The city's Fidesz mayor, Klaudia Szemereyné Pataki, who has been in office for over a decade, is a member of the foundation’s supervisory board, while Vice Mayor József Gaál and Sándor Lezsák, the Deputy Speaker of the National Assembly, are members of its board of trustees.
The ASZ's findings indicated that the funds managed by Optima Investment Zrt., which handles the foundation's assets, withdrew 127 billion forints from the university’s endowment through a bond scheme funded by the state.
These funds have reportedly been invested in public companies, predominantly in the real estate sector, which has raised concerns due to the illiquid nature of these assets.
Short-term, the university was owed significant sums for these investments, yet retrieving these funds proved challenging as the bond collateral was largely non-liquid, resulting in potential losses.
The ASZ's report criticized the foundation for failing to implement adequate regulations and controls necessary for risk management while noting that the agreed returns were minimal.
When the university sought to redeem these bonds a year ago, Optima was unable to fulfill the request, and the foundation leadership took no action in response.
A police investigation has been launched concerning the affairs of the Matolcsy-backed foundations associated with the Hungarian National Bank.
The intertwining of the university's fate with the Matolcsy family is noteworthy, as the mayor’s husband, Szabolcs Szemerey, is a relative of György Matolcsy, the former Governor of the National Bank.
Szemerey has served as a strategic director at the university and continues to contribute as a faculty member, overseeing a project company responsible for university construction.
The chairman of the university foundation’s board, Norbert Csizmadia, also has ties to Matolcsy, having served as state secretary in the Ministry of National Economy under Matolcsy’s leadership.
The Szövetség a Hírös Városért Egyesület (Union for the City of Hírös) issued an open letter addressing these issues.
The letter emphasized that the findings of the ASZ and the resulting criminal complaint severely undermine public trust, making it unacceptable for Kecskemét’s officials to manage public funds under such circumstances.
They have urged Mayor Szemereyné Pataki and Vice Mayor Gaál to resign from their positions on the Neumann János University Foundation’s supervisory board and board of trustees and to account for the irregularities described in the ASZ report.
On the day of the ASZ report's release, GTC Group, which is associated with the National Bank's foundation portfolio and remained under the influence of the Matolcsy family, announced the immediate resignation of Balázs Szécsényi from its supervisory board.
Szécsényi has been identified as a close associate of István Tiborcz, the son-in-law of Hungary's Prime Minister.
The GTC Group, a real estate company listed on the Warsaw Stock Exchange, continues to operate with connections to individuals close to the Matolcsy family, including several executives linked to previous high-ranking positions within the National Bank.
Szécsényi did not respond directly to questions regarding his resignation or whether it had any connection to the ASZ report.
Instead, he stated that his resignation was not related to the ASZ findings but rather due to an increase in his official responsibilities since being elected to the supervisory board in 2020. Concerns about governance at the GTC Group date back to 2014, a time when issues were already raised yet appeared overlooked by the Fidesz leadership.
This situation has arisen after an investigation by the State Audit Office (ÁSZ) initiated a complaint regarding the Pallas Athéné Domus Meriti Foundation, which was established by the Hungarian National Bank.
The audit has raised suspicions of crimes affecting economic management, which prompted further scrutiny of the Neumann János University Foundation.
The city's Fidesz mayor, Klaudia Szemereyné Pataki, who has been in office for over a decade, is a member of the foundation’s supervisory board, while Vice Mayor József Gaál and Sándor Lezsák, the Deputy Speaker of the National Assembly, are members of its board of trustees.
The ASZ's findings indicated that the funds managed by Optima Investment Zrt., which handles the foundation's assets, withdrew 127 billion forints from the university’s endowment through a bond scheme funded by the state.
These funds have reportedly been invested in public companies, predominantly in the real estate sector, which has raised concerns due to the illiquid nature of these assets.
Short-term, the university was owed significant sums for these investments, yet retrieving these funds proved challenging as the bond collateral was largely non-liquid, resulting in potential losses.
The ASZ's report criticized the foundation for failing to implement adequate regulations and controls necessary for risk management while noting that the agreed returns were minimal.
When the university sought to redeem these bonds a year ago, Optima was unable to fulfill the request, and the foundation leadership took no action in response.
A police investigation has been launched concerning the affairs of the Matolcsy-backed foundations associated with the Hungarian National Bank.
The intertwining of the university's fate with the Matolcsy family is noteworthy, as the mayor’s husband, Szabolcs Szemerey, is a relative of György Matolcsy, the former Governor of the National Bank.
Szemerey has served as a strategic director at the university and continues to contribute as a faculty member, overseeing a project company responsible for university construction.
The chairman of the university foundation’s board, Norbert Csizmadia, also has ties to Matolcsy, having served as state secretary in the Ministry of National Economy under Matolcsy’s leadership.
The Szövetség a Hírös Városért Egyesület (Union for the City of Hírös) issued an open letter addressing these issues.
The letter emphasized that the findings of the ASZ and the resulting criminal complaint severely undermine public trust, making it unacceptable for Kecskemét’s officials to manage public funds under such circumstances.
They have urged Mayor Szemereyné Pataki and Vice Mayor Gaál to resign from their positions on the Neumann János University Foundation’s supervisory board and board of trustees and to account for the irregularities described in the ASZ report.
On the day of the ASZ report's release, GTC Group, which is associated with the National Bank's foundation portfolio and remained under the influence of the Matolcsy family, announced the immediate resignation of Balázs Szécsényi from its supervisory board.
Szécsényi has been identified as a close associate of István Tiborcz, the son-in-law of Hungary's Prime Minister.
The GTC Group, a real estate company listed on the Warsaw Stock Exchange, continues to operate with connections to individuals close to the Matolcsy family, including several executives linked to previous high-ranking positions within the National Bank.
Szécsényi did not respond directly to questions regarding his resignation or whether it had any connection to the ASZ report.
Instead, he stated that his resignation was not related to the ASZ findings but rather due to an increase in his official responsibilities since being elected to the supervisory board in 2020. Concerns about governance at the GTC Group date back to 2014, a time when issues were already raised yet appeared overlooked by the Fidesz leadership.
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