Hagyó Files

The primary purpose of this blog is to serve as a source of information on the BKV case in Budapest, Hungary. The “Hagyó Case” as it commonly known in Hungary due the main defendant, Hagyó Miklós, will be presented and hopefully discussed through this blog either in blog-style articles, more journalistic compositions, or case-related documents. The case has garnered much domestic and international attention due to the high-profile defendants who were an alleged criminal network in the midst of Hungary’s on-going transition from a repressive communist regime into a transparent democracy in today’s highly globalized stage. If you are interested and would like to follow our updates, please register via the RSS feed!

The mafia charges of billions of forints have melted

In most cases because of the absence of crime police have terminated the criminal procedures initiated after the change of administration in 2010. stipulations of international treaties. In several cases the courts were unable to find proved the accusation of the existence of some kind of mafia entity. Tax payers are to bear the 100 billion Hungarian Forints which is contested in the lawsuit connected to Sukoro investment.

Miklós Hagyó former socialist Deputy Mayor was shocked when he saw himself in a picture in a FIDESZ campaign poster on the streets. In those posters he is not illustrated in a good manner at all. Although he has been retired for 4 years and he has no intention to return to the public life. Our newspaper went to what happened with those members of the public against whose criminal procedures were initiated – not exempted from political overtones – during 2009 and 2010. Which is the present status of these procedures, is there any decision in force, the accused are released or sentenced?

INDEMNITY

We were looking for Miklós Hagyó to take a statement about how he has lived through the past years, what lesson was stabbed from his position of Deputy Mayor, what he would do in another way and what is the truth about the alleged millions carried in a Nokia box. However – via his legal representative – he said that he does not intend to say a word. “Once you’re bitten by a snake you fear the lizard as well.” – reflected András Kádár attorney-at-law why his defendant rejects to comment. It is known from Hagyó that he lives secluded in the embrace of his family. After his arrest his physical condition was broken down, he lost 37 kg weight. Now he has been waiting for the end of the criminal proceedings regarding the BKV case. Miklós Hagyó was arrested on 14th new Parliament, almost at the same time when his former socialist party co-‘s took their oath. Although he had indicated – via his legal representative – to the authority weeks ago that it is his full intention to cooperate with them, special police force knocked on his house’s door. He opened the door then the special force pushed him against the wall, handcuffed and led him in the crossfire of the media. The video had been shown for weeks by the public media. Meanwhile Hagyó’s condition was getting worse and worse in the correctional institution, he spent more than 4 months in a guard house where the available space was 3,52 square meter per person, furniture included. Then he spent 4 months in another place where the ratio was 4,7 square meter per person. His lawyers wanted him to be placed to home guard however they also referred to and emphasized a procedural anomaly: the authorities failed to determine the real reason of the arrest. Also the European Court of Human Rights did not find everything fine since the Court judged EUR 20,000 indemnity in favor of Miklós Hagyó in 2013. As we know Hungary has already paid this amount to him. 

The Fidesz had been curing – It could have been prevent the lot of penalty

Really it should have been only this, and then the Hungarian tax-payers shouldn’t have to pay the penalty damages because of the case transferences? It’s a public joke.

We can start this story from far away, but there is no sense for the enumeration. They will do this a few years later on the law schools, when probably the purpose which allusive the special criminal cases and which is supported by the 2/3 government will be a curriculum in there.


This made it happen that Tünde Handó, who was newly elected president of the National Judicial Office in the January of 2012, could appoint court which are equal in scope but it’s diverge than the general cognizance courts in politically tender cases, like the Sukoró’s plot change, the BKV case, or the trial of György Hunvald. The National Judiciary Office had the same charge from lot of sides, that they appoint these kinds of cases according a sin which countryside court has a stricter or more extenuate judgment, according to the earlier cases.

Let’s go to Kecskemét

The BKV case should had been trial in the Budapest Court, but Tünde Handó appointed it to the Kecskemét Court in the February of 2012, with the allude to the workloads of the other court. Against the decision the concerned people couldn’t make an appeal but they made a constitutional complaint and they asked for suspend of the process. All of this didn’t block the process, the appointed judge started the case in the Kecskemét Court. She questioned all the defendants and almost all of the witnesses. Roughly after 50 days of hearings December of 2013 came, when the Constitutional Court in their decision established that the laws about the case transferences were repealed by the Parliament and it’s come up against the Basic Law and against the international rules. 

We had a selfie with Hagyó on the Subway line 4!

Today Budapest is celebrating the Subway line 4 with a surprising party exemption. The whole media, competent and amateurs, oranges and red, passengers and BKV workers exalt the final form of the gigantic project.


And true what is true, it’s just enough to go down to one-one station to be completely floored for its own world and for the visions from the forms, shapes, devices and surfaces. I1m not going to even gush more about it, see it if you can.

We thought that we will ask a person on the presentation day, who was concerned in a more deeply way into the project just to cut the strip. Thus through his lawyer we contacted Miklós Hagyó former socialist deputy lord mayor, who – although didn’t cut a stripe today – was responsible for the investment during his office period and (since then it turned out that wrongly, without a reason, with fake cause) he was in pre-trial detention for it.


Miklós Hagyó in the beginning – kept himself for his muteness in the last 4 years – didn’t want to declare, however he called us back during the day to send a short message to everyone who was concerned with the building operations. He did it in this way without any verbal comment:




„From the people who created the idea to the person who pull the last screw, we, thousands of Hungarian people can be proud and we can thank to God that a big building operation like this came true uniquely in the world without any accident.”

The Hagyó case had been replaced to Budapest – Népszava article

In the criminal procedure of the former deputy lord mayor and his 14 associates in the warrant from the Kecskemét Tribunal on December 6th, 2013, they established the lack of cognizance and they placed the case to the Budapest Tribunal – announced the Kecskemét Tribunal. 

As it known: Handó Tünde, the president of the National Judicial Office (the wife of József Szájer, who is a Fidesz representative of the European Parliament) in 2012 appointed the Kecskemét Tribunal for the continuance of the process. In the meantime the provisions of measures were eliminated by the Constitutional Court which was the basis of the appointment – with the references of collision with the basic law offence and international contracts.

BKV case: it was a normal contest

The BKV case trial continued with the former leader of the department of investment’s hearing today on the Kecskemét Tribunal. The witness was heard in the count of the C. C. Soft Ltd. accusation. On the hearing he made it obvious: this company made the best offer for the configuration of the passenger informant system.




The former leader of the department started to work at the transportation company in 1974, and in the lack of 10 days he was working there for 35 years, until May, 2008. He led the department of the investment from March, 1997 until August, 2007, when because of the realignment he became to the front of the developmental department. About the questioned period – summer of 2007 – he said that at that time the department controlled 170-180 investments. 

The accusations with the C.C. Soft are misty – reporting from the court room

Not one question came up in the people after the Thursday’s hearing of the BKV case. The technical terms like interface XM 25, data link, guards just fluttered. The court’s and the reader’s situation is not easy. We will try to clear this up, howsoever the situation with the I/14 count seems like misty.





Because of course what just happened in a ”shallow and rough-and-ready” way?

There is a several billion forint project, in it’s maiden name, the whole reconstruction of the Szentendre’s local train, which is proceed in it’s own way, in practice it had to be ready for the fall of 2007. However the modernization of the passenger informant system is dropped out of it, which of course should be do in lightening steps, after all the fall is coming, the school season is coming.

BKV case: absurd mix-up in the court room – Stop.hu article

On the Kecskemét Tribunal they would prove the condition of the local train’s passenger informant system in 2008 with photos which were taken in 2011. From this it became a comical mix-up, but they still couldn’t prove the accusation.




On the Thursday’s hearing on the carpet it was again the accusations of the contracts with the C. C. Soft. The witnesses who were heard were the responsible people in the department of the investment of the local train’s passenger informant system. One of them, F. P. as he said, he feels that in the October of 2007 at the explosion of the media scandal he became in the position like this because he was inexperienced and manageable. He stated that for November, 2007 the testing could start and however a lot of mistakes were revealed, the workers of the C. C. Soft did everything for the insurance of the system’s working. The witness stated in his investigation testimony that Zsolt Balogh, that time deputy CEO of the BKV, took in the decision power. With this he would have support the concept of the accusation but for the questions of the defense he said that from the defendants, no one ordered him to any outlawry or committal of an abuse. Attila Antal, the former CEO of the BKV, in his observation he noted that if F. P. wouldn’t have signed the achievement certification which are in the accusation then they couldn’t paid the C. C. Soft, and then the project would have been stopped which the witness was responsible for. 

BKV case: the local train’s display is on the carpet

On the yesterday’s hearing of the BKV the counts with the C. C. Soft were on the carpet. The court heard two witnesses who were the responsible people of the project in the company’s department of investments in 2007 when the company established the passenger informant system of the Szentendre’s local train. 

For the end of the day it revealed: during their activity they had no sign to the management of the transportation company that would include that the project wouldn’t fulfill.

The official people who works in the BKV case can get 10 years

The bill submitted by MSZP not long ago would punish official people with the possibility of 10 years imprisonment – that way also the prosecutors and the investigators working on the BKV case – who produce made-up evidences or if they participate in this action with malfeasant tools.





The defendants and witnesses involved in the BKV case during the hearing reported one after the other that they’ve made their previous testimonies which were incriminatory to others under humiliating circumstances, directionally, coercion interrogations as a result of the interrogating investigators’ and policemen’s threats.

Even Zsolt Balogh, the case’s key witness and at the same time defendant also admitted that the reason behind his incriminatory statements (for example about the Nokia box) during the election campaign was that he wanted to meet the expectations and to avoid jail. “I’m not a hero, I didn’t want anything else just to go home” – he confessed before the court.

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.

Remarkable turn: the project director doesn’t accuse Miklós Hagyó

There has been a turn in the BKV case on the Tuesday hearing, since the leader of the Subway line 4 project company unsaid his negative statements given by him during the investigation concerning the first accused Miklós Hagyó as a result of the questions of the defense and the documentary evidences.





At the Kecskemét Tribunal the witness who was the leader of the innovation Éva H. for example stated regarding Hagyó’s press person that the way she knew that the lady worked for the former deputy lord mayor is that he talked with her about it. However the defenders presented contracts that have proven that the witness has left the project before Éva H. started to work at the City Hall.

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.

BKV case: the consultancy wasn’t unnecessary

The BKV case’s new testimony also didn’t favor the accusation: it has been revealed that based on the consulting contract - the subject of the accusation - an outside company did a useful and important job for the transportation company regarding the Subway line 4 investment. 

The witness who requested his personal information’s closed handling and who was questioned on the hearing was working as the company’s leading consultant. The witness answered the questions about 3 contracts, including the consulting contracts related to Subway line 4, which was also discussed.



As he said, the company already worked for the BKV in 1996. He stated about the contract related to the subway that the person who was responsible for the investment contacted them about the company making a study regarding the situation of the project. 

The actual signing of the contract happened after the arrangements have been made with the former CEO of the BKV. There was a two week deadline for the first phase, so the fulfillments have been made before the signing of the contract and has been started right after the verbal agreement. 8-10 consultants worked on the assignment in 12-13 hours a day. The witness gave a detailed report about the work they’ve done. It has been revealed from his report that they’ve done a great amount of work in a short time.

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.

The accusation weakened again in the BKV case

The BKV case continued with the hearing of two witnesses at the Kecskemét Tribunal. Both of them made a statement about the investment made in Subway line 4, and about a job ordered by a consulting firm. They didn’t confirm the accusations.






One of the witnesses of the BKV case’s Tuesday hearing was Imre Ikvai-Szabó, who was working as Budapest’s deputy lord mayor at the same time as Miklós Hagyó. While Hagyó was responsible for the professional matters at the cabinet, Ikvai-Szabó was responsible for the financial ones. As he told, the disbursement system of the public utility companies was regulated so closely, that in practice, the City Hall didn’t have a say in the matter. He and Hagyó primarily dealt with contracts that exceeded the 5-10 billion forint value, such as the 500 billion forint worth Subway line 4 projects. He didn’t understand that meanwhile they dissect half million forint worth contracts at the hearing.

Coercion interrogations, magisterial malfeasances in the Hagyó case – WITNESSES (5th part) – RELOADED

In the hearings period of the BKV case, which is became called as the Hagyó case, the defendants and the witnesses in the case recalled their testimonies which was the biggest storm stirred. 

A lot of them referred to the fact that during the investigation against the Public Transportation Ltd. of Budapest and against a few former leaders of Budapest there happened several magisterial malfeasances. Ones reported about coercions, others revealed a lot of malpractices from the police during the investigation.

The police documents are bristles from the caveats. The defendants brought the attention to the court for falsely dated, lost documents and for documents which can have the forgery suspicion.




Our blog started a series for the explorations of these malfeasances. On the fifth round please get to know another case’s defendant – which known as the airport bribery- , György Sziebert’s story, observations. 

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.