Procurement Rules Fail in Hungary Concession Contract
What happened
The government found serious procurement violations in the Mészáros-Szíjj motorway concession contract in Hungary. The state is liable for the contract, which costs 77 million forints per hour. The government stated that the total minimum payment over the full concession term is 23,000 billion forints, lasting until 2057.
From budapesttimes.hu
Why it matters
The government believes the contract is unlawful because activities that should have been public procurement were commissioned by the concessionaire. Due to the observed breaches of neither EU nor Hungarian public procurement rules, the government plans to file a criminal complaint regarding circumstances of breach of fiduciary duty.
From budapesttimes.hu
Who's involved
- HungaryThe government of Hungary is the state liable for the flawed concession contract.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- HungarySpeculative
The state might face financial liability for the flawed contract and potential criminal complaints due to procurement issues.
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The entities involved
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Hungary
country in Central Europe