EU pursues Orbán son-in-law case despite Hungary ending probe

Dropping of Hungarian investigation ‘strengthens doubts on the independence of Hungarian law enforcement authorities,’ says Parliament committee chair.

The EU will continue pursuing funds lost in an alleged corruption scheme involving Hungarian Prime Minister Viktor Orbán’s son-in-law, despite Hungary’s decision to drop an investigation into the case.

“At the end of 2017, OLAF concluded an investigation into possible irregularities related to 35 lighting projects implemented under the Hungarian Environment and Energy Operational Program, and co-financed by the European Cohesion Funds,” a spokesperson for the EU’s anti-fraud agency told POLITICO.

“OLAF’s investigation revealed not only serious irregularities in most of the projects, but also evidence of conflict of interest,” the spokesperson said, adding that “even if no criminal case is opened at national level, this does not invalidate OLAF’s findings and evidence with regard to financial recovery.”

The company in question, Elios, was co-owned by Prime Minister Orbán’s son-in-law István Tiborcz at the time that the alleged irregularities took place. Elios and Tiborcz have maintained that the project was conducted properly.

Tiborcz, who is 32 and married to Orbán’s eldest daughter, has become one of Hungary’s most successful businessmen, raising questions about whether his connection to the prime minister plays a role in his access to both state and EU funding.

Earlier this week, a spokesperson for the Hungarian police announced that the investigation triggered by the OLAF report has been closed, with the police finding no evidence that a crime was committed.

A spokesperson for the European Commission confirmed that it is looking into the case to determine whether Hungary will have to pay back funds to the EU.

“The contradictory procedure with the Hungarian authorities on the basis of the OLAF report is still ongoing,” the Commission spokesperson said.

Hungary’s move to drop the investigation has been criticized in Brussels.

“The outcome of the Hungarian authorities is surprising,” said German MEP Ingeborg Gräßle, who chairs the Parliament’s budgetary control committee and is a member of Chancellor Angela Merkel’s CDU party.

“The OLAF report contained strong evidence of fraudulent irregularities. We will have to analyze the results of this investigation together with DG REGIO [the Commission’s regional policy department],” said Gräßle, who has long been outspoken about the potential misuse of EU funds in Hungary.

“The outcome leaves and strengthens doubts on the independence of Hungarian law enforcement authorities and reinforces the need of a real tool to protect EU financial interests in future, as Hungary and other big receivers do not participate in the only independent European investigating tool, the European Public Prosecutor’s Office,” she said.

A spokesperson for the Hungarian government did not respond to a request for comment.