Serious Irregularities Identified at State Oncology Foundation
Hungary's State Audit Office uncovers significant deficiencies in operations and financial record-keeping.
The Hungarian State Audit Office (ÁSZ) has reported serious irregularities and deficiencies at the Central and Eastern European Oncology Academy Foundation, a body established by the government in 2019 to undertake international collaborations in cancer research and treatment.
The foundation is overseen by the Minister of Human Resources, with jurisdiction transferred to the Minister of Interior following the dissolution of the former Ministry.
According to the audit, which examined the foundation's activities from 2021 to 2023, the use of state funding, amounting to 1.95 billion forints in non-repayable support during its initial years, could not be substantiated by original invoices, receipts, or other necessary documents.
This lack of documentation makes it impossible to determine the specific applications of these funds.
Furthermore, no invoices were presented for the refurbishment planning of the foundation's headquarters.
The audit also revealed that the foundation had acquired tangible assets of unknown value from state subsidies.
It is reported that the organization exploited its dual identity as both a foundation and an academy.
For example, while the foundation accounted for approximately 15 million forints in payroll costs, it had no employees in 2023. However, the members of its board received between 12 and 13 million forints in compensation, and the president earned about 2.5 million forints annually.
Two years prior, personnel costs for the foundation had drastically decreased, while those of the academy rose to between 38 and 39 million forints, with the president's salary increasing to 5.2 million forints in the most recent year.
Additionally, the organization has relocated from its original premises in District V to a property on Diana Street in the Hegyvidék area, purchased for approximately 750 million forints in 2021.
The State Audit Office noted that the foundation failed to prepare its financial report for 2022-2023 in a timely manner, and the supplementary and public benefit appendices provided did not comply with legal requirements.
Despite identifying these issues, the ÁSZ has only issued a 14-point proposal package concerning the foundation.
This is notable given previous instances where improper accounting of campaign funds or state support resulted in proposals for substantial fines or the suspension of state support for opposition parties.
Efforts to contact the ÁSZ, the Ministry of Interior, and the foundation for further comment were initiated.
The foundation is overseen by the Minister of Human Resources, with jurisdiction transferred to the Minister of Interior following the dissolution of the former Ministry.
According to the audit, which examined the foundation's activities from 2021 to 2023, the use of state funding, amounting to 1.95 billion forints in non-repayable support during its initial years, could not be substantiated by original invoices, receipts, or other necessary documents.
This lack of documentation makes it impossible to determine the specific applications of these funds.
Furthermore, no invoices were presented for the refurbishment planning of the foundation's headquarters.
The audit also revealed that the foundation had acquired tangible assets of unknown value from state subsidies.
It is reported that the organization exploited its dual identity as both a foundation and an academy.
For example, while the foundation accounted for approximately 15 million forints in payroll costs, it had no employees in 2023. However, the members of its board received between 12 and 13 million forints in compensation, and the president earned about 2.5 million forints annually.
Two years prior, personnel costs for the foundation had drastically decreased, while those of the academy rose to between 38 and 39 million forints, with the president's salary increasing to 5.2 million forints in the most recent year.
Additionally, the organization has relocated from its original premises in District V to a property on Diana Street in the Hegyvidék area, purchased for approximately 750 million forints in 2021.
The State Audit Office noted that the foundation failed to prepare its financial report for 2022-2023 in a timely manner, and the supplementary and public benefit appendices provided did not comply with legal requirements.
Despite identifying these issues, the ÁSZ has only issued a 14-point proposal package concerning the foundation.
This is notable given previous instances where improper accounting of campaign funds or state support resulted in proposals for substantial fines or the suspension of state support for opposition parties.
Efforts to contact the ÁSZ, the Ministry of Interior, and the foundation for further comment were initiated.
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