The Magical Nokia-box - part 22.

What decision was given at first instance?

After the prosecution admitted that they had committed mistakes and the charges related to the Nokia-box had been dropped, Hagyó was imposed two-year suspended sentence. However, he was not found guilty in connection with the Nokia-box and the metro line 4, furthermore the charge of being involved in criminal organization was also dropped. Since the ex Deputy Lord Mayor is still pleading his innocence the responsible defence lawyers have appealed the decision and the case goes to the court of second instance.

What were the antecedents of the decision?

The last witness was heard in September, 2015 in the BKV case. However, even after the case took more unexpected turns. In the last moment the prosecution amended the indictment again basically eliminating the count related to the Nokia-box.

The Magical Nokia-box - part 6

When did BRFK start the investigation?

Although there were no condemning investigations at BKV before 2008, BRFK entered the campaign in 2010. One day after Hagyó resigned from BKV’s supervisory board Gábor Tóth police chief informed the transporting company about continuing criminal procedure. Police initiated the arrest of Szalainé 90 days prior to the elections and kept on accusing BKV persons. The investigation landed in the hands of Hagyó’s former political rival: György Pető used his position to recruit managers of some companies owned by the capital before the municipality elections, who were supposed to be informants to the police.

There were really no condemning internal investigations at BKV?

Really there were not. Two internal investigations stated in 2008 that all the contracts of the affected period are ok. Supervisory Board accepted the investigation of the Internal Supervisory Department on October 16, 2008 with respect to that those reports contained the entire advisory circle and there were no ascertainments that would have requested further steps to take. The general meeting of 2008 accepted Zsolt Tiba’s report (capital clerk) with the attachments which were reports on the contracts between BKV and AAM Zrt.

Capacity and competence – we report from the court room

The consulting contracts signed by AAM Ltd were discussed again on Tuesday at the BKV case’s hearing.

The last Tuesday hearing was an interesting day in the history of the „strudel dough length” BKV case. The honorable court discussed the count regarding the AAM Ltd’s consulting contracts, obviously not for the first time. Given that more witnesses have already spoken regarding these contracts, but now the company’s onetime CEO was standing before the court.

And he didn’t hold himself back.




For the judge’s question he already stated it in his first sentence that he doesn’t understand how the company lead by him got into this case. In his person he is feeling himself offended that regarding the AAM Ltd’s activities because of the politics and the media, the company’s professional reputation has been damaged. This thought followed through the witness’s testimony.

With the contract splitting, the BKV lost billions – Népszava article

The AAM Ltd’s consulting contracts were discussed again on Tuesday, on another day of the BKV case’s hearings. According to the AAM Ltd’s onetime president and CEO, regarding the total investment the amount of loss can be measured in 10 million forints what they could’ve saved if the BKV wouldn’t have terminated the contract with the company.




The witness was a founder of the AAM Ltd. in 1994, where he was managing director until 2003 and then CEO until December 31 2007, since then he is the president of the company. The AAM finished his first job for the BKV in 1996 and in the following years they’ve been in continuous contact with the transportation company completing annually 1-2 assignments for 5-10 million forints. Since 1999 administrative authorities were also clients of the company, as market leaders they were in the BKV’s prequalification system for 15 years. The company employed 230 people in 2007 from which 140 had 5-8 years of experience. 

The AAM did a useful work for the BKV

The court heard another witness about the contract of the investment made in Subway line 4 on the BKV case’s Thursday hearing. After the hearing’s day it is getting cleaner: the AAM Ltd. did a useful work for the BKV and for the owner, Budapest.




Z.D. who was summoned as a witness was working at the BKV since 1988, until September 2007 when Attila Antal, that time CEO of the BKV terminated the contract by common assent. Since 1990 he was working as project manager, decision preparatory and as a public procurement expert, then from 2004 from the ask of Botond Aba he was leading the directorate of the innovation and public procurement until July, 2007, when after the organizational converts he got into the head of the engineering directorate as the deputy CEO.

Hagyó case: according to a former AAM coworker the analyses for the BKV were necessary- HVG article

A witness considered the analytical and the subway investment screening materials made by AAM Ltd. to BKV – who were associates during that time - useful and necessary on the Thursday hearing of the case against Miklós Hagyó former socialist deputy lord mayor and his associates at the Kecskemét Tribunal.





The AAM signed 3 contracts in 2007, during the time of the accusation with the BKV. In these contracts they undertook the assignment of screening the subway investment, supporting the coordinating tasks of the Subway line 4 project, and also the expert support of the highlighted projects of the transportation company. The witness - who was the leading consultant of the AAM Ltd. during the time of the accusation - firmly traversed those statements of the indictment which says that the company performed unnecessary services for the BKV Ltd.

Hagyó case - The number 31 witness called two contracts useful

The Hagyó case’s number 31 witness considered two BKV contracts important and useful on the Tuesday hearing at the Kecskemét Tribunal. They questioned the witness in connection to the accusations of the AAM Zrt. and the Montana Zrt.
The witness was brought to BKV Zrt. by the recommendation of Gábor Demszky, former lord mayor of the SZDSZ and he worked as deputy chief executive officer at BKV from April 2007 to December 2008 then left the transportation company with a several 10 million forints “step-down fee”.

They projected the electronic mails - which were sent by Montana to BKV - on the wall of the courtroom, but no substantial information connected to the project could’ve been found.

What are the concrete accusations from the prosecution against Hagyó in the connection with the subway line 4?

The BKV case continued in the Kecskemét court on the Tuesday’s hearing with the count which is about the study of the Subway line 4. The I/21. count numerically is the most remarkable accusation against Miklós Hagyó. Nevertheless that the making of the reports about the project wasn’t even in the scope of the former deputy lord mayor.





According to the accusation the unneeded study was ordered by the BKV from the AAM Ltd. for 50 million forints, but according to the accusation the city hall should have paid for it. According to the indictment in the end of December, 2006, Hagyó ordered Attila Antal who was at that time the CEO of the BKV that he has to get the analysis work done with the AAM Ltd. But about from the indictment it doesn’t come out clearly if the accusation entail against Hagyó that the quid pro quo of the contract should have been paid from other resource, or that the contract per se was unneeded. 

Hagyó, the AAM Contract, and the Holey Accusations from the Prosecution

Hagyó, the AAM Contract, and the Holey Accusations from the Prosecution

The Budapest Metro Line 4 (Metro4) has for many years been a major project for the Budapest Transit Authority (BKV). Once finished, it will be the first fully automated metro line in Hungary. Totaling more than 12 kilometers (7.5 miles), it will pass from south Buda under the Danube River and continue deep into Pest. The project has been notorious, however, for its continuity. Critics of the project have considered its progress slow and its management incompetent; tell-tale signs of government corruption. Those in charge of the project say that a lack of resources and manpower are the true hindrances.

Miklós Hagyó is quite familiar with the project. From 2006 to 2010 he served as deputy mayor of Budapest, and in that capacity he was responsible for the political oversight of the city’s assets. In the trial of Hagyó and the other 14 associates of BKV, the prosecution claims that Hagyó “instructed” then chief executive of BKV Attila Antal to strike up a business agreement with the Hungarian consulting firm AAM, who has a strong public sector track record. The alleged purpose of the arrangement was the creation of an assessment report on Metro4. It intended to ascertain the quality and progress of the project’s “management, the administration, as well as quality assurance activities.” The prosecutors assert that Hagyó was required to present the report to the City Council’s Budget Committee.

At this point, everything seems fairly normal. As usual with the Hagyó Case, though, the abnormalities appear when one analyzes the prosecution’s accusations and methodology.  Regarding the contract with AAM, the prosecution claims in the indictment on page 17 section 21 the services provided by AAM were “unnecessary,” and they caused BKV financial damages totaling 50,093,400 forints (nearly 230,000.00 USD at the time of writing).

Here arises the first question: By what means has the prosecution determined this contract to be unnecessary? There are most certainly no explanations provided in the original indictment. Neither has the prosecution explained thus far in the trial how this contract and the related work were unnecessary.  Besides that simple question, the major refute to this assertion is that the prosecution admittedly neglected to seek consultation from any organization or individual who could be capable of accurately determining the necessity of the AAM contract.

On the other hand, Miklós Hagyó did provide ample evidence for the worthiness of the contract during his first in-court testimony. Perhaps most significantly, though, Hagyó indicated that while he scoured through tens of thousands of pages of collected evidence related to the AAM contract, he failed to find the actual Metro4 assessment report…Let me repeat that: The prosecution did not provide the assessment report of the Metro4 project in the case file. Mind you, this accusation that Hagyó “instructed” his subordinate to create a needless contract with AAM from which he could extort a significant sum of money was one of the most significant reasons Hagyó was forced to endure nine months of hard jail time prior to the trial. The AAM accusation was one of the biggest indicators that Hagyó was an Al Capone-like figure, dictating his less capable minions to do his dirty deeds. Indeed, this questionably “unnecessary” contract which Hagyó allegedly “instructed” his subordinate to create is a major catalyst for the entire trial.  And the prosecution did not even include the report, the primary evidence, in the case file.

Other parts of Hagyó’s testimony strongly support the necessity of the AAM contract. For example, he included several quotes from then City Council members who reviewed the report produced by AAM. Here are a few excerpts:

“It is a very fair, well-prepared report. It also shows that we got a lot of information.”

– Former Minister of Transport Katona Kálmán

“We can thank both the referring Deputy Mayor [Miklós Hagyó] and László Becker [Metro4 Commissioner] that this material was prepared…”

- Dr. Gábor Dancs

There are more which attested to the necessity and value of the assessment report from AAM.  They are available in this section of Hagyó’s testimony. He also systematically explains how he was not directly involved with the Metro4 project or AAM. According to him, the Metro Commissioner László Becker held the reigns for the project’s development.  Hagyó claimed that he was merely the political representative of the project for the City Council.

Despite, these shortcomings in the validity of the prosecution’s case against Hagyó, the trial persists. When I inquire to those who follow the case how this is possible – how a trial can subsist when an overwhelming amount of evidence supports innocence of the defendants – the Hungarians just shrug their shoulders. “It’s Hungary. It’s normal,” is a typical response.

Please visit http://www.hagyomiklos.com to view the original indictment and the testimony of Miklós Hagyó.

Source: http://thehagyocase.wordpress.com/

Hagyó, the AAM Contract, and the Holey Accusations from the Prosecution

image source: http://michaelhyatt.com

The Budapest Metro Line 4 (Metro4) has for many years been a major project for the Budapest Transit Authority (BKV). Once finished, it will be the first fully automated metro line in Hungary. Totaling more than 12 kilometers (7.5 miles), it will pass from south Buda under the Danube River and continue deep into Pest. The project has been notorious, however, for its continuity. Critics of the project have considered its progress slow and its management incompetent; tell-tale signs of government corruption. Those in charge of the project say that a lack of resources and manpower are the true hindrances.

Miklós Hagyó is quite familiar with the project. From 2006 to 2010 he served as deputy mayor of Budapest, and in that capacity he was responsible for the political oversight of the city’s assets. In the trial of Hagyó and the other 14 associates of BKV, the prosecution claims that Hagyó “instructed” then chief executive of BKV Attila Antal to strike up a business agreement with the Hungarian consulting firm AAM, who has a strong public sector track record. The alleged purpose of the arrangement was the creation of an assessment report on Metro4. It intended to ascertain the quality and progress of the project’s “management, the administration, as well as quality assurance activities.” The prosecutors assert that Hagyó was required to present the report to the City Council’s Budget Committee.

At this point, everything seems fairly normal. As usual with the Hagyó Case, though, the abnormalities appear when one analyzes the prosecution’s accusations and methodology.  Regarding the contract with AAM, the prosecution claims in the indictment on page 17 section 21 the services provided by AAM were “unnecessary,” and they caused BKV financial damages totaling 50,093,400 forints (nearly 230,000.00 USD at the time of writing).

Here arises the first question: By what means has the prosecution determined this contract to be unnecessary? There are most certainly no explanations provided in the original indictment. Neither has the prosecution explained thus far in the trial how this contract and the related work were unnecessary.  Besides that simple question, the major refute to this assertion is that the prosecution admittedly neglected to seek consultation from any organization or individual who could be capable of accurately determining the necessity of the AAM contract.

On the other hand, Miklós Hagyó did provide ample evidence for the worthiness of the contract during his first in-court testimony. Perhaps most significantly, though, Hagyó indicated that while he scoured through tens of thousands of pages of collected evidence related to the AAM contract, he failed to find the actual Metro4 assessment report…Let me repeat that: The prosecution did not provide the assessment report of the Metro4 project in the case file. Mind you, this accusation that Hagyó “instructed” his subordinate to create a needless contract with AAM from which he could extort a significant sum of money was one of the most significant reasons Hagyó was forced to endure nine months of hard jail time prior to the trial. The AAM accusation was one of the biggest indicators that Hagyó was an Al Capone-like figure, dictating his less capable minions to do his dirty deeds. Indeed, this questionably “unnecessary” contract which Hagyó allegedly “instructed” his subordinate to create is a major catalyst for the entire trial.  And the prosecution did not even include the report, the primary evidence, in the case file.

Other parts of Hagyó’s testimony strongly support the necessity of the AAM contract. For example, he included several quotes from then City Council members who reviewed the report produced by AAM. Here are a few excerpts:

“It is a very fair, well-prepared report. It also shows that we got a lot of information.”
– Former Minister of Transport Katona Kálmán

“We can thank both the referring Deputy Mayor [Miklós Hagyó] and László Becker [Metro4 Commissioner] that this material was prepared…”
- Dr. Gábor Dancs

There are more which attested to the necessity and value of the assessment report from AAM.  They are available in this section of Hagyó’s testimony. He also systematically explains how he was not directly involved with the Metro4 project or AAM. According to him, the Metro Commissioner László Becker held the reigns for the project’s development.  Hagyó claimed that he was merely the political representative of the project for the City Council.

Despite, these shortcomings in the validity of the prosecution’s case against Hagyó, the trial persists. When I inquire to those who follow the case how this is possible – how a trial can subsist when an overwhelming amount of evidence supports innocence of the defendants – the Hungarians just shrug their shoulders. “It’s Hungary. It’s normal,” is a typical response.

Please visit http://www.hagyomiklos.com to view the original indictment and the testimony of Miklós Hagyó.

Source: http://thehagyocase.wordpress.com

INDICTMENT PICKED TO PIECES: THERE IS HARDLY EVIDENCE AGAINST HAGYÓ MIKLÓS

In the today published HetiVálasz/ Weekly Answer we picked to pieces the indictment of the soon starting suit against the Public Transport Company. The result is shocking: The prosecutor hold not more than three crimes against Hagyó Miklós of the fifty crimes.



Since the judgment of first instance court states that Hunvald György ex socialist mayor is guilty with not more than one and a half years imprisonment because he caused harm for Elizabeth town/Erzsébet város with corruption, the voice of the critical of jurisdiction smartened/strenghtened.