Hungarian Authorities Launch Investigation Into Missing Public Funds from Central Bank Foundations
Police investigation focuses on alleged mismanagement amid claims of significant financial losses linked to MNB foundations.
The National Investigative Office of Hungary has initiated a criminal investigation for suspected mismanagement based on a complaint from the State Audit Office (ÁSZ).
The inquiry centers around the Pallas Athéné Domus Meriti Foundation and the Neumann János University Foundation, following allegations of misappropriation of public funds amounting to hundreds of billions of forints.
According to findings from the ASZ, it has been revealed that at least 150 to 200 billion forints may have been lost due to improper or possibly negligent investment decisions by the foundations, which collectively manage assets reportedly worth 500 billion forints.
It has been noted that the foundations' asset management company, OPTIMA Ltd., has concealed their assets behind complex corporate structures and private equity funds, raising suspicions of public asset misappropriation.
While the investigation progresses, the police have not disclosed the names of any suspects, nor clarified whether any have been formally identified at this stage.
The ASZ's recent report indicated that suspicions of criminal activity related to asset management and financial mishandling were sufficient to warrant this legal action.
The foundations in question were established in 2014 under the leadership of György Matolcsy, the former governor of the Central Bank of Hungary (MNB).
At that time, the MNB directed 266 billion forints of public funds into six Pallas Athéné foundations.
There have been claims that this public money has effectively been rendered unidentifiable, with significant losses attributed to investment decisions made by Matolcsy's administration.
The new president of the MNB, Mihály Varga, who took over from Matolcsy earlier this year, has expressed a commitment to halt any operations outside the central bank's core functions, which includes the foundations' activities.
Varga has initiated a comprehensive review of the funds' management practices, emphasizing the need for transparency and accountability.
He has also communicated with Prime Minister Viktor Orbán regarding the future of the MNB’s foundation-related activities.
Simultaneously, in a related development, the Portuguese police conducted searches at the headquarters of the Portuguese Football Federation (FPF), amid an ongoing investigation into corruption allegations involving past leadership, including Fernando Gomes and Tiago Craveiro.
Searches were executed as part of a broader inquiry that has been underway since 2021, focusing on property dealings purportedly connected to mismanagement and illicit financial activities within the federation.
The investigations into both the MNB's foundations and the FPF have prompted significant public and political scrutiny, drawing attention to issues of transparency and governance in financial management across institutions.
The inquiry centers around the Pallas Athéné Domus Meriti Foundation and the Neumann János University Foundation, following allegations of misappropriation of public funds amounting to hundreds of billions of forints.
According to findings from the ASZ, it has been revealed that at least 150 to 200 billion forints may have been lost due to improper or possibly negligent investment decisions by the foundations, which collectively manage assets reportedly worth 500 billion forints.
It has been noted that the foundations' asset management company, OPTIMA Ltd., has concealed their assets behind complex corporate structures and private equity funds, raising suspicions of public asset misappropriation.
While the investigation progresses, the police have not disclosed the names of any suspects, nor clarified whether any have been formally identified at this stage.
The ASZ's recent report indicated that suspicions of criminal activity related to asset management and financial mishandling were sufficient to warrant this legal action.
The foundations in question were established in 2014 under the leadership of György Matolcsy, the former governor of the Central Bank of Hungary (MNB).
At that time, the MNB directed 266 billion forints of public funds into six Pallas Athéné foundations.
There have been claims that this public money has effectively been rendered unidentifiable, with significant losses attributed to investment decisions made by Matolcsy's administration.
The new president of the MNB, Mihály Varga, who took over from Matolcsy earlier this year, has expressed a commitment to halt any operations outside the central bank's core functions, which includes the foundations' activities.
Varga has initiated a comprehensive review of the funds' management practices, emphasizing the need for transparency and accountability.
He has also communicated with Prime Minister Viktor Orbán regarding the future of the MNB’s foundation-related activities.
Simultaneously, in a related development, the Portuguese police conducted searches at the headquarters of the Portuguese Football Federation (FPF), amid an ongoing investigation into corruption allegations involving past leadership, including Fernando Gomes and Tiago Craveiro.
Searches were executed as part of a broader inquiry that has been underway since 2021, focusing on property dealings purportedly connected to mismanagement and illicit financial activities within the federation.
The investigations into both the MNB's foundations and the FPF have prompted significant public and political scrutiny, drawing attention to issues of transparency and governance in financial management across institutions.
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