The renovation of Kossuth Square in Hódmezővásárhely, Hungary, has taken a troubling turn as the contracted firm, Trigon Home Kft., has seemingly disappeared alongside tens of millions of forints intended for the project.

The company was awarded the contract during a summer tender process in 2023, with an agreement to undertake specific renovations for a total of 197 million forints.

Initial payments, which greatly exceeded the legal advance requirement, have now come under scrutiny.

Local authorities had been proactive, transferring a significant advance of 30%—approximately 60 million forints—to Trigon Home Kft.

before most of the anticipated work was completed.

Reports indicate that only about 30% of the contracted work was finished before the company ceased operations, leading to concerns about the whereabouts of the funds.

Hódmezővásárhely's Mayor, Péter Márki-Zay, has stated that the municipality encountered numerous issues in fulfilling its contractual obligations and expressed discontent regarding the treatment of subcontractors, alleging that not all had been compensated.

Investigations into Trigon Home Kft.

began following allegations of serious financial irregularities, including embezzlement and unfulfilled contractual duties.

The Budapest-based company, established in 2016, was ordered into liquidation by the Metropolitan Court in February 2023. The police investigation is still in its early stages, and specifics regarding the total amount involved remain undisclosed.

Additionally, the website for the company has become inaccessible.

Márki-Zay highlighted that Trigon Home Kft.

had fulfilled all legal requirements during the bidding process, and the firm had submitted the most competitive proposal.

Following the initial advance payment, the project faced significant issues, raising concerns regarding the use of the funds.

The Mayor suggested that the money may have been diverted to settle the company's prior debts rather than fund the project's execution.

In response to the unfolding situation, the municipality has taken steps to terminate their contract with Trigon and has initiated a new tender process, contracting Ferroép Zrt.

to complete the work.

The new agreement does not include advance payments, exhibiting a shift in strategy as local leaders seek to prevent a recurrence of similar financial troubles.

Kiss Zoltán, the managing director of Trigon Home Kft., has denied any wrongdoing, asserting that the advance was genuinely used to pay subcontractors and that he possesses documentation to support this claim.

The firm contends that unforeseen challenges disrupted project progress, although specifics regarding these obstacles have not been disclosed.

In the context of a politically charged environment, local leaders have raised concerns that the firm's connections may have influenced project outcomes.

Márki-Zay indicated that there seemed to be deliberate efforts to obstruct the project's timely completion, linking the situation to broader political dynamics surrounding the local government.

As of December 2023, the city has renewed its commitment to the project, with Ferroép Zrt.

now poised to lead the completion of the renovations.

Current arrangements appear more secure, with no outstanding payments to subcontractors reported, differing significantly from the tranche provided to Trigon Home Kft.

The municipality's experiences have drawn attention to the management of public funds and the vetting processes involved in public procurement.

With the investigation ongoing, the implications of this case may extend beyond Hódmezővásárhely, highlighting the need for enhanced oversight in public contracts across Hungary.