Hungarian national airline Malév collapses into insolvency, ceases all flights (updated)
March 11th, 2010

Accountant warned Demszky over BKV in 2006

A staff accountant at Budapest public transport company BKV told mayor Gábor Demszky that its employees “steal, cheat, embezzle and produce bogus invoices”, in a letter in 2006. Demszky ignored the letter, explaining that the accountant had not specified details.

When the accountant requested a hearing with Demszky, his secretary sent him to then deputy mayor Pál Vajda, who refused to receive him, saying he was not authorised to do so. In a telephone conversation Vajda told the accountant that he should compile a report.

The accountant was fired shortly afterwards and initiated a lawsuit against BKV.

Demszky responded that Vajda and former deputy mayor Miklós Hagyó had examined the accountant’s letters and deemed their content entirely unfounded.

Hagyó told MTI on Wednesday that he is ready to face any inquiry into his activity, assets or property purchases. Hagyó said he can verify his property purchases with authentic documents.

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Comments [5]
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  1. Pipi lepew says:

    The same Demszky Gábor who recently said he read
    about BKV corruption in the newspapers like the rest
    of us.

  2. Vándorló says:

    I think if someone just uses the Freedom of Information Act to request the numerous external auditor’s reports for state companies or those working with state companies they will find plenty more to work with. I guarantee it. All or at least most of these have notes at the end of the reports listing irregularities, unknowns or items to be dealt with. These statements have to be signed off. In following years it is clear that the companies and individuals continue to act against the accounting procedures clearly detailed in previous external auditor’s reports.

  3. Anonymous says:

    Quite so, Vándorló.Irregularities in accounting procedures,ignorong external auditor’s reports etc.
    Who is going to police all this,let alone issue proceedings against offenders. The mind boggles.
    The problems are so deep it will take a brave man to start deling with the mile-high corruption.
    Trouble is the confederates, who participate in this black hole bureaucracy, think it’s normal to cheat, steal, lie, and embezzle.
    Bulgaria, Russia, Ukraine, Rumania, etc. are the same.
    Commie-style corruption knows no boundries.

  4. Viking says:

    Commie-style corruption knows no boundries
    Anonymous at March 11, 2010 4:12 PM

    Obviously not to Italy and Greece
    Maybe they started Cosa Nostra also?
    .
    The professional thieves have always aligned themselves with the Current Establishment, regardless their party colour
    And they will be present in the future versions of the Establishment also, anything else is just a pipe dream
    So they need to be combated every day and stringent rules and adherence to those for Public Procurement are needed
    Also to minimise what can be stolen, by limiting the Public scope of ‘Operate Business’, is also important
    BKV is *the* case to show that the Public should not run this type of operation, license it out to Private Contractors to a fixed price and well defined QoS-parameters (Quality of Service)
    That is how most of the high-tech world live and how much Rocket Science is it to run a Bus Company, or a Tram Company?
    .
    No the criminal part of the Establishment just want to keep it in the Public sphere, so they can steal more
    Private companies have normally better internal controls over the employees (in which the Executive Management is counted to)
    Demszky would hardly make it to the Dream-Team of Owner’s Rep in the Board, but as long as it is private owners losing money on their own stupidity, who cares?

  5. LouReed says:

    Viking. I agree with you one hundred percent.
    But there are many people for one reason or another that would prefer to keep things in the public domain rather than have private enterprise take over.
    Many Hungarians have given up on expecting reform and change. That’s why Jobbik are gaining ground
    becuase they claim they will tackle corruption.
    Hungarians accept gross misconduct like the BKV scandal as the “norm”. This is both distressing and defeatist.