The value of land exchanged by entrepreneur Joav Blum for a site near Lake Velence where he plans to open a casino was overstated by Ft 600 million in the swap contract, a judicial expert told the Central Investigative Prosecutor’s Office.
The Office has been investigating the possible misuse of funds since April regarding the exchange of Blum’s land in Albertirsa and Pilis, southeast of Budapest, for a site in Sukoró, near Lake Velence.
Office leader Imre Keresztes said the 183-hectare properties in Albertirsa and Pilis are worth a combined Ft 193.5 million, of which the area required for a motorway bypassing Monor and Pilis is Ft 15.1 million. The contract valued the land at Ft 787.4 million.
An American, a German, an Israeli and a Hungarian businessman intend to establish a Ft 275 billion tourist project on the north shore of Lake Valence by the middle of 2013. Blum, the Israeli investor, exchanged the 183 hectares of land in exchange for the state-owned site near Sukoró.
The State Audit Office said the contract should be voided, and the Székesfehérvár prosecutor has alleged forgery of public documents.
State asset manager MNV is asking judicial experts for their opinion on the differing appraisals of the land.
Investors met members of the Gyurcsány cabinet in Parliament, including then Economy Minister Gordon Bajnai, last year, Magyar Hírlap writes. The cabinet promised to prepare an appraisal of the properties earmarked for a swap and to resolve ownership issues. Miklós Tátrai, then head of the MNV, was designated to oversee the project.