The oligarchs of Hungary enter into a panic and try to take fortunes out of the country

BarcelonaThe defeat of Viktor Orbán in the elections of April 12 unleashed euphoria among a large part of the Hungarian population, but it also seems to have fueled panic among a more select but powerful group of citizens of the Central European country. The oligarchs who have amassed large fortunes during Fidesz's 16 years in government fear that Péter Magyar's future government will fulfill its promise to end corruption and clientelism and they will lose their fortunes, and have begun to move money and other assets out of the country.

Even Magyar himself stated a few days ago via a video on social media that "oligarchs linked to Orbán" are transferring "tens of billions of forints" to countries such as the United Arab Emirates, the United States, and Uruguay. He stated that he had knowledge that the Hungarian National Tax and Customs Administration (NAV) has suspended several high-value transfers "under suspicion of money laundering".

The future Hungarian prime minister asked this body to immediately freeze the "stolen funds". He also urged the attorney general and the national police to arrest those responsible "who have caused billions of forints in damage to the Hungarian people" and not to allow them to flee to countries from which extradition is currently not possible.

The Hungarian police published a statement this Wednesday in which, without naming any suspects, they state that an investigation is underway "into the suspicion of hiding funds or other illegally acquired assets".

According to the Hungarian media VSquare and the British The Guardian, these oligarchs are using private jets to transport cash and other valuables out of the country, to destinations in the Persian Gulf and Southeast Asia. They also report that high-level individuals close to Orbán have been studying visa options for the United States, in the hope of finding work in institutions linked to the Maga movement. The Hungarian portal 444 already reported in March that key figures close to the then prime minister were transferring assets to Dubai.

Péter Magyar also stated that "several families of oligarchs have already left (the country)" and that "other influential families have already taken their children out of school and are organizing reliable security personnel for their departure".

Family and childhood friends

"There are oligarchs who have enriched themselves mainly at the expense of Hungary's public money. Members of Orbán's family, childhood friends and other businessmen who have been part of the political elite clan who have had easy access to public money," Miklos Ligeti, head of legal affairs for the Hungarian branch of the NGO Transparency International, explains to ARA. Among the key figures is István Tiborcz, the prime minister's son-in-law and one of the richest men in Hungary since he created an investment group in 2015 that has expanded into numerous sectors of activity. Last year, Tiborcz moved to the United States with his wife.

Another of the great Hungarian oligarchs is Lőrinc Mészáros, a friend of Orbán's since they were children, who in just over a decade has gone from being a modest gas installer to the richest man in the country, with an estimated fortune of over 5 billion euros. In his statement, Péter Magyar stated that he has received information that Mészáros's family is preparing to move to Dubai.

One of the main avenues of enrichment has been public procurement: "They started with the construction of roads, railways, bridges... those areas where the government is mainly the one that organizes and pays. But the appetite grew and now these oligarchs control at least a third of the Hungarian economy: banking, telecommunications, tourism, hospitality, real estate development...", says Ligeti. "European Union funds have also been massively used," points out Sándor Léderer, co-founder and director of K-Monitor, a non-profit public funds watchdog. He indicates that another avenue of enrichment has been long-term public concessions, for example in waste management, road maintenance and casinos. And also the privatization of state assets in favor of these businessmen: "There are certain sectors that have been completely privatized or channeled towards the spheres of interest of this clientelist network."

Furthermore, there is data demonstrating that public money has been transferred to private investment funds. Transparency International published a report last December stating that the Hungarian state had invested more than 3.3 billion euros in private equity funds up to that point. "But we have just received confidential information showing that the figure would be more than double. Therefore, there could be new forms and new layers of corruption that we are unaware of at the moment," states Ligeti.

Recovery of public wealth

One of the main promises of Péter Magyar during the election campaign has been to dismantle Hungary's institutional corruption system. "It won't be easy but it's a viable job," considers Ligeti, arguing that Hungarian oligarchs "depend completely on government transfers".

Magyar has also promised that those who have committed crimes will be brought to justice. One of the questions is whether this could also affect Viktor Orbán. "I am quite sure that a legal basis would be found to investigate and convict him for corruption," says Léderer. But he indicates that the new government could decide not to request an investigation for political reasons, in line with the future prime minister's promise to "reunite the nation".