Prime Minister Péter Magyar has announced that the government has ordered a comprehensive review of every contract involving the 4iG Group and the Hungarian state. The audit will cover ownership, financial, economic and other contractual relationships between the state, 4iG and companies directly or indirectly owned by the group. According to the prime minister, four ministries will participate in the review. Particular attention will be paid to transactions involving Antenna Hungária, the financing of the Vodafone Hungary acquisition, a framework agreement worth more than HUF 1.3 trillion signed with the Ministry of Defence, and contracts related to a satellite programme worth more than HUF 850 billion. Magyar made serious allegations about the relationship between the company and previous Orbán governments, but stressed that the findings would also be made public if individual transactions are found to have been lawful and beneficial to the state.

All state-related ties are to be examined

Péter Magyar announced in a Facebook video that, following a government decision made last week, a full-scale audit would be launched into 4iG’s contracts involving the state. He said the government would not limit the review to a handful of high-profile transactions, but would instead examine the company group’s entire network of relationships with the Hungarian state.

The review will also cover companies in which 4iG holds a direct or indirect ownership interest. According to Magyar, the government intends to examine ownership structures, financing arrangements, economic agreements and every other relevant contractual relationship.

Four ministries will take part in the review

The prime minister said four ministries would work together on the audit. The source did not specify exactly which ministries would take part or how responsibilities would be divided among them.

Magyar nevertheless made clear that the government does not intend to assess the contracts solely from a legal perspective. It will also examine the economic consequences of individual transactions for the Hungarian state and whether the state received adequate value in exchange for assets transferred or obligations undertaken.

Magyar called 4iG the “stealth mothership of the NER”

The prime minister used unusually strong language to describe the company group’s previous operations. He called 4iG the “stealth mothership of the NER,” referring to Hungary’s former System of National Cooperation, and alleged that many of the largest and, in his view, most questionable business deals of recent years had links to the company.

These are political allegations made by Magyar and do not in themselves amount to legal findings. One of the purposes of the newly announced government audit will be to determine whether the individual transactions complied with the law and whether the Hungarian state suffered any financial damage.

4iG’s rapid expansion will also come under scrutiny

According to Magyar, 4iG grew during the Orbán governments from an information technology company into one of Hungary’s largest telecommunications, IT, defence and space-industry groups. The prime minister alleged that this expansion was closely connected at several points to decisions by the former government and to state funding.

He specifically highlighted that 4iG received around HUF 389 billion in financing through the Hungarian National Bank’s Bond Funding for Growth Scheme. The government intends to assess the role of this and other forms of state-related financing as part of the review.

Antenna Hungária transactions are included

Magyar also referred to the process through which 4iG gained majority control of Antenna Hungária in 2022. The transaction followed a capital increase of more than HUF 400 billion.

According to the prime minister, deals involving Antenna Hungária will be one of the key areas examined during the audit. The government wants to establish which state decisions, financing structures and ownership changes led to the current arrangement.

The Vodafone Hungary acquisition will be reviewed in detail

One of 4iG’s largest transactions was the acquisition of Vodafone Hungary. According to the source material, the deal was worth HUF 660 billion, while the Hungarian state acquired a 49 percent stake.

Magyar stressed that the state was involved not only as a shareholder. He said a state development bank also played a role in financing 4iG, and the government therefore intends to review the entire financial background of the Vodafone transaction and the nature of the state’s participation.

Magyar made serious allegations about earlier deals

The prime minister claimed that some of the transactions carried out in previous years were not merely poor business decisions, but amounted, in his view, to the systematic weakening and plundering of the Hungarian state. These remain political allegations and their accuracy will have to be determined by the audit and, where necessary, by the relevant authorities.

Magyar also said that over the previous 16 years, the Orbán governments had transferred major state assets through arrangements that may have been contrary to the public interest. He cited motorway concessions, the Mátra Power Plant and various state-owned energy companies as examples.

Defence-industry expansion will also be examined

The prime minister devoted particular attention to 4iG’s expansion in the defence sector. He recalled that the group acquired Rába and that, shortly before the election, the company and the state established a joint public-private defence-industry structure through which 4iG obtained stakes in strategically important Hungarian defence companies.

Magyar alleged that some of these transactions may have taken place at prices disadvantageous to the state. Determining whether that was actually the case will also be part of the review, and there is currently no final judicial or official ruling establishing wrongdoing.

A defence framework agreement worth more than HUF 1.3 trillion will be reviewed

According to the prime minister, the government will separately examine a framework agreement worth more than HUF 1.3 trillion that was signed between the Ministry of Defence and 4iG before the election. The source does not provide the full contents of the contract, but its scale makes it a priority for the government.

Magyar said the government must clarify the circumstances in which the agreement was concluded and the obligations undertaken by the state. The audit may assess both its economic justification and its legal foundations.

Contracts for the satellite programme are also under scrutiny

The government also intends to review contracts connected to a satellite programme worth more than HUF 850 billion. Magyar listed the project among the major agreements where, in his view, the background of state commitments needs to be examined in detail.

The review will seek to establish the terms under which the contracts were signed, what obligations were assumed by the parties involved and whether the financial burden on the state was proportionate to the expected benefits.

The government promises to publish the findings

Péter Magyar said the results of the audit would be made public. He stressed that the government would also disclose findings in cases where a transaction is found to have been lawful and beneficial to the Hungarian state and taxpayers.

If, however, the review uncovers suspected irregularities, misuse of public funds or possible criminal offences, the government intends to file complaints with the relevant authorities. Magyar also said the government would seek to recover assets or funds if the investigation concludes that they may have been unlawfully removed from state ownership.

Magyar also addressed the leaders of 4iG and other NER-linked companies

At the end of the video, the prime minister directly addressed the executives and major shareholders of 4iG and other companies linked to the former NER system. He said that if they believe the government and official investigations may uncover criminal conduct, they should return any state funds they may have improperly retained to the Hungarian State Treasury.

Magyar went further, warning those concerned not to attempt to transfer, move abroad, conceal or otherwise dispose of money, assets or other property. He ended the video with a short message: “We are watching.”

The audit will determine whether legal consequences follow

The prime minister’s announcement marks the beginning of an investigative process rather than a finding of legal responsibility. Although Magyar made several serious accusations and political assessments, none of them can substitute for the conclusions of administrative, prosecutorial or judicial proceedings.

One of the key questions in the coming period will therefore be what the four-ministry review finds about the state contracts concluded with 4iG. The government says the results will be made public, while any suspicion of wrongdoing could lead to further legal action.

MNO – Magyar News Online

Photo: MTI / MTVA

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