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Hungarian Police: MNB foundations under investigation for fraud
Hungary’s police confirmed an ongoing investigation into the foundation linked to the Hungarian National Bank (MNB), following a complaint filed by the State Audit Office (ÁSZ) over suspected financial misconduct, 444 reports. The controversy dates back to 2014 when then-Governor György Matolcsy funneled HUF 266.4 billion ($715m) from the central bank into the Pallas Athéné Domus Meriti (PADME) Foundation. Over time, the foundation’s assets ballooned, primarily managed by Optima Investment Ltd. However, according to ÁSZ’s latest findings, these funds were invested through an opaque structure, making their true value difficult to assess.
The audit has also flagged suspicious financial dealings involving Neumann János University’s foundation, which received nearly HUF 150 billion ($402m) in state funding but diverted much of it into Optima’s corporate bonds instead of investing in education. Another suspicious detail is a EUR 170 million loan granted to PADME by MBH Bank, a financial institution partly owned by the Hungarian state and a close associate of Hungarian Prime Minister Viktor Orbán.
In Hungary, the IMF governor is usually also the Governor of MNB. On Wednesday evening, a government decision was published in the Hungarian Official Gazette: Orbán dismissed György Matolcsy from his post as governor representing Hungary.
Dutch Parliamentary Committee inspecting the rule of law in Hungary
Members of the European Affairs Committee of the Dutch Parliament have arrived in Hungary, Hungarian weekly HVG reports. The delegation was received by Zoltán Tessely, chairman of the European Affairs Committee, and Róbert Dudás, vice-chairman of the committee.
The visit will focus on the rule of law in Hungary. To this end, the delegation will meet not only with Hungarian MPs and the Parliamentary Secretary of State of the Ministry of European Union Affairs but also with civilians. The meetings will also include a discussion on the new amendment of the law on assembly. The Dutch European Affairs Committee wrote a letter to EU Minister János Bóka this week expressing their "deep concerns" about developments affecting the rights of the LGBTQI+ community.
Hungarian Foreign Minister announces cooperation with Russia at Red Square
Hungarian Foreign Minister Peter Szijjártó visited Moscow for the 13th time since Russia invaded Ukraine. After talks with members of the Russian government, the Hungarian Foreign Minister announced at Red Square that an agreement had been reached to enhance cooperation between the two countries, 444 reports.
"This is clearly in Hungary's interest, as Hungary's energy security depends to a large extent on cooperation with Russia. Last year, Hungary received record volumes of natural gas from Russia. This year, the daily volume is over 20 million cubic meters. The volume of crude oil delivered to Hungary exceeded 1.25 million tonnes this year," Szijjarto said Let us be clear: without Russian energy carriers, Hungary's energy supply would not be secure," he said that after the US-Russian talks, the 30-day ban on strikes on energy facilities in Ukraine and Russia would also apply to oil and gas pipelines from Russia to Hungary. Szijjártó expressed concerns over "the Ukrainians attacking an energy infrastructure, which led to several days of oil supply disruptions".
UN Expert Condemns ‘Desperate Conditions’ and segregation in Hungarian Schools
Hungary’s education system is in a state of decline, with Roma students facing systemic segregation, according to UN special rapporteur on the right to education, Farida Shaheed, Balkan Insight reports. Following a fact-finding mission from 10 to 21 March, Shaheed criticized the “hollowing out of the public sector” and the use of “seemingly neutral criteria” on academic performance and special educational needs to justify placing Roma students in separate classes or even entirely separate schools. Her findings add to growing concerns over inequality and worsening conditions in Hungarian public education.