Investigating close to Orban for fraud with billions of EU dollars (overview)

In Hungary, a significant political and legal confrontation has erupted between the anti-corruption authority and high-ranking officials linked to former Prime Minister Viktor Orbán. At the center of this conflict stands Ferenc Pál Biró, head of the Hungarian Integrity Authority (IA), who has accused Orbán's circle of embezzling billions of euros from European Union funds. This accusation comes as the new government under Prime Minister Péter Mády is attempting to unfreeze over €16 billion in EU funding that had been blocked due to concerns about the rule of law in Hungary.

Biró claims that senior members of Orbán’s administration may be under investigation for their alleged role in a scheme involving the misappropriation of EU funds during Orbán’s 16-year tenure. According to reports, three companies received state contracts worth approximately €10 billion over four years, with potential overcharging reaching up to €3.5 billion. These contracts allegedly involved inflated prices for goods and services significantly above market rates. Biró emphasized that these actions have caused substantial harm to European taxpayers and stressed the need for the new government to recover these funds and restore justice.

The accusations against Orbán’s associates come amid efforts by Mády to reassure Brussels that Hungary is committed to implementing necessary reforms to access the frozen EU funds. Following a meeting with European Commission President Ursula von der Leyen in May, Mády announced preliminary agreement on the release of €16.4 billion. He also pledged to establish a National Asset Recovery Agency to investigate the misuse of public funds and allow the European Public Prosecutor’s Office (EPPO) to operate within Hungary—a move previously resisted by Orbán.

Despite these developments, Orbán and his party Fidesz have not responded to inquiries from media outlets regarding the allegations. Meanwhile, reports suggest that businesspeople and officials close to Orbán and Fidesz have begun transferring assets abroad following recent political changes. According to *The Guardian*, citing its sources, oligarchs associated with Orbán are reportedly moving tens of billions of forints to jurisdictions such as the UAE, the United States, Uruguay, and others. It was also claimed that the family of Lajos Mészáros, one of Orbán’s closest allies and Hungary’s richest man, might soon leave the country.

However, the situation took a dramatic turn when the Hungarian prosecution office filed charges against Biró himself. According to the Hungarian Media and Information Technology Institute (MTI), Biró is being investigated for fraud, abuse of office, and other violations. The probe began after a tip-off in January 2025, leading to interviews with Biró and his wife as suspects. During the investigation, which included witness interrogations, data collection, and multiple searches, additional charges were brought against Biró.

According to the indictment submitted to the Budapest district court, while serving as head of the IA, Biró retained a luxury jeep funded by the institution, despite having been provided with an official car and two drivers. His wife used the vehicle extensively without proper authorization, charging fuel costs to the agency. This resulted in financial losses amounting to around 21 million forints (approximately €59,000). Prosecutors noted that while Biró had the right to an official car and driver, he did not have the right to retain multiple vehicles simultaneously or to cover personal expenses related to them.

The IA, established in 2022 as part of reforms mandated by Brussels, oversees the use and security of EU funds. It is independent of the government and is likely to play a crucial role in dismantling the networks of associates created during Orbán’s time in power, which spanned sectors ranging from construction to media. Biró has led the oversight body since its inception and has faced criticism and attempts at bribery during his investigations into public procurement schemes. Additionally, his wife was offered a high-paying position without actual work responsibilities, and Biró himself was detained and charged with misusing his official car.

The European Commission has expressed zero tolerance for fraud targeting the EU budget, emphasizing the importance of transparency and accountability in the use of EU funds. As the situation unfolds, the new government faces mounting pressure to demonstrate its commitment to reform and ensure the proper allocation of the recently unfrozen funds. The outcome of the ongoing legal proceedings against both Biró and potential members of Orbán’s inner circle will likely shape the trajectory of Hungary’s relationship with the EU and its domestic political landscape.