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Hungarian police have raided the offices of the Integrity Authority, the state body that oversees the use of EU funds.
The Attorney General has announced that its President Ferenc Biro is suspected of corruption and abuse of power.
The police also searched Biro’s house and took the documents.
He has admitted that he gave “his official car to his wife to go shopping”, but rejects the accusations and says they are being targeted for political reasons, “from above”.
This statement alone has caused consternation in Hungary.
Ferenc Biro and his wife Judit are top insiders in the ruling Fidesz party, with excellent connections at the highest level. His position and salary are comparable to that of a government minister.
The Integrity Authority was created in early 2023 to demonstrate to the European Commission that EU funds were properly spent and audited. Its leaders were appointed by the president of the republic.
The prosecution also accuses him of obstructing the work of his two vice-presidents.
The allegations are shaking the government for three reasons.
It comes just 10 days after Antal Rogan, head of government communications and secret services in Prime Minister Viktor Orban’s cabinet, was put on the sanctions list by the US Treasury as “the primary architect, implementer and beneficiary of this system”. corruption”.
The move was strongly criticized by the government as a “personal vendetta” against US Ambassador David Pressman.
The second reason is that Peter Polt, the chief prosecutor, has long been accused by the opposition of not investigating corruption in the ruling Fidesz party.
The third reason is that Hungary permanently lost €1bn (£845m) in EU funds as of December 31, and millions more are at risk if it fails to meet strict EU criteria for releasing the already suspended funds.
“Throughout my career I have been fighting against corruption and fraud, and for ethics and integrity,” Biro wrote in his October 2022 presidential application letter.
According to a statement released by the Attorney General, in addition to his official vehicle, Biro rented a second luxury car, racking up a bill of 14 million Hungarian forints (€34,000; £29,000).
According to Hungarian media, the office’s funds were used to renovate his luxury home and build a fence around it hundreds of meters long.
Starved of EU funds, with Hungary’s currency losing value and annual inflation rising to 4.6% last month, Hungary’s economy is in trouble.
Critics of the government believe that Ferenc Biro may be right: Viktor Orban is trying to sacrifice one of his chess pieces in order to get the necessary money.
Biro has opposed the investigation in a statement.
“Today they specifically attacked my person and through this they wanted to make the functioning of the Integrity Authority impossible,” he said on Thursday night.
“Our organization has always operated and continues to operate with the highest ethical and legal standards.”