When the contractor agreement for the renovation of the Chain Bridge was finally signed in March 2021 after seemingly endless bureaucratic delays, few could have anticipated that an extensive invoice factory and, according to the latest reports, embezzlement would be uncovered in the wake of the project.

Hungary's and particularly Budapest's most famous symbol has now, deservedly, come to this point in its restoration story. How the project reached this stage is almost unbelievable, but less so when considering the inexplicable aspects of the Chain Bridge renovation before it even reached the execution phase.

Let’s look at the extraordinary chronology of this prestigious investment.

HOW DID THE COST OF THE CHAIN BRIDGE RENOVATION ESCALATE?

It's important to note that the initial steps for the Chain Bridge renovation were taken under the administration of Mayor István Tarlós, with a tender for reconstruction issued prior to 2019. The A-Híd Zrt. won both this and the second tender signed under Gergely Karácsony in the fall of 2020.

A second round was necessary because the new city management rejected the previous tendering process, arguing they wanted to implement a new concept. This decision, both initially and in hindsight, proved incorrect, as

the Chain Bridge renovation eventually cost an extra 5 billion forints.

On September 23, 2019, during the tenure of Mayor István Tarlós, a bid of 35 billion forints was settled. This amount included the renovation of the Chain Bridge, the Széchenyi Square tram tunnel, and the Castle Tunnel. In the proposal, the Chain Bridge alone had a final gross sum of 21.8 billion forints.

Compared to this, the bid accepted on December 18, 2020, under Gergely Karácsony, amounted to a final gross bill of 26.75 billion forints. A comparison between the net costs also proves a 25% increase in bids for the Chain Bridge from the same company within just over a year: Under István Tarlós, the reconstruction would have cost 15.22 billion forints net; under Gergely Karácsony, it was already up to 18.8 billion forints net. The same figures with a 10% contingency are 16.75 billion and 20.6 billion forints, respectively.

HOW DID THE CHAIN BRIDGE RENOVATION PROCEED?

So the taxpayers have suffered both financial and temporal losses. The work began a year and a half behind schedule, in March 2021. A troubling point was the advance payment of sixty times more than planned to A-Híd, a pivotal company in the domestic bridge construction market, while simultaneously halving the penalty fee. There were no complaints concerning the quality of the work; Minister of Construction and Transportation János Lázár even congratulated the contractor.

The renovation was marred by disputes over the final traffic regulations on the Chain Bridge. In the end, the mayor, citing the majority view of Budapest residents, decided to prohibit cars on the bridge, thereby forfeiting a 6 billion forint government subsidy promised for the renovation of the Chain Bridge (although this is currently under debate between the city and the government).

Nonetheless, as of December 16 two years ago, the Chain Bridge was open to BKK public transport vehicles, taxis, bicycles, motorcycles, and mopeds. However, this was not the only inauguration. From May 26, 2020, the pedestrian section connecting to the Pest side of the bridge from Széchenyi Square was also opened. Finally, on August 4, 2023, the renovation was completed, and the Chain Bridge was handed over for the last time.

FINANCIAL SCANDAL AT THE CHAIN BRIDGE CONTRACTOR, A-HÍD ZRT.

But this was not the end of the project. On the contrary, it seems the real scandal is just beginning. Recent reports have surfaced that in two years, 1.4 billion forints were funneled from the Chain Bridge contractor A-Híd Zrt. to a company suspected of invoice fraud, Sunstrike Hungary Kft., operated by lawyer Mór Vig.

Of this sum, 900 million forints were withdrawn in cash

from Mór Vig's personal and escrow lawyer accounts. The case so far does not directly point to him, but he is of interest because he is the brother of Dávid Vig, director of the human rights organization Amnesty International Hungary.

Returning to the confusing financial maneuvers, Mór Vig's home was searched, and a criminal investigation has been launched against him. In early December, he was arrested on well-founded suspicions of major budgetary fraud. According to sources at atv.hu, authorities are investigating whether A-Híd Zrt. transferred 1.4 billion forints to Sunstrike Hungary Kft's account between November 2020 and July 2022, and whether from there 900 million forints were transferred to Mór Vig's personal and escrow lawyer accounts.

The latter is particularly contentious because the lawyer was permanently banned from practicing law—decided by the Curia in January 2022 due to his involvement in a criminal act. If money still reached his escrow account despite the ban, it's especially problematic.

WHAT IS THE MOST IMPORTANT QUESTION REGARDING THE CHAIN BRIDGE SCANDAL?

The really important question is still unanswered. It concerns whether the scandal is connected to the public funds paid out by the city. In other words, whether this billion-forint sum was channeled secretly to a private individual under the guise of the Chain Bridge renovation for unknown purposes. If so, we're not just talking about a bridge refurbishment but possibly a second Hagyó case.

More than a decade ago, it was discovered that the then-left-wing city administration had entered into disproportionately disadvantageous contracts at the expense of BKV (Budapest Transport Company). This time around, it may turn out that the overvaluation of the Chain Bridge renovation was not coincidental.