A court put Ernő Mesterházy, senior adviser to mayor Gábor Demszky, and former PR head of the Budapest public transport company (BKV) Tibor Zelenák in custody on Friday. Former deputy CEO of BKV Miklós Regőczi was placed under house arrest.
Regőczi is suspected of misuse of funds and Zelenák as acting as an accomplice to misuse of funds. Mesterházy is suspected of persuading BKV senior executives to sign unjustified and unnecessary contracts.
Also being held is former IT director of BKV Zsolt Fuzik, who was captured by commando units on Wednesday evening after two months on the run.
Mesterházy was employed by Demszky as political senior adviser according to a contract signed on July 17, 2009. A copy of the contract was obtained by Kossuth Rádió on Friday. Demszky will hold a press briefing with CEO of BKV István Kocsis on matters related to the company on Monday.
Published every Tuesday, the Budapest Business Week newsletter contains all the previous week's headlines from Realdeal.hu and related stories from other All Hungary sites, as well as a list of upcoming events of interest to the foreign business community in Hungary.
How could this corruption go on so long, did really no one notice it ?
In most countries it's a tradition that "whistleblowers" would have informed either the authorities or the media or the competition.
Look what happened in Switzerland/Lichtenstein/Germany where several people sold CDs with data on German tax refugees ...
A few years ago a dsgruntled Lufthansa worker told all about abuse of frequent flyer miles by German members of parliament .
Even in Britain members of parliament now have to be honest in declaring their expenses ...
Corruption and malpractice everywhere. Hungary is beginning to really suffer now because the tide has not been stemmed.
Unless immediate action is taken to combat the scandals that appear in the media on a daily basis we are heading for real trouble.
Unfortunately to really make any impact the justice system, policing methods, bureaucracy,local and central government have to undergo a complete overhaul in a short space of time. It won't happen.
Yeah, where ARE all the whistleblowers? What
happened to all the communist-era training to spy on
your neighbours? Have you all forgotten so quickly?