The Magical Nokia-box - part 3

What exploded the BKV-scandal?

 Let’s jump back until July 23, 2009 when BKV-scandal exploded in connection with the dismissal pay of Szalainé Szilágyi Eleonóra, former HR director. Hagyó, who was on vacation at that time, immediately ordered an investigation in this case. According to Magyar Nemzet daily BKV concluded unnecessary contracts and paid excessive dismissal pays. Now we are aware of the fact the BKK still concludes these kinds of contracts so far. Of course the press barely wright about this and nobody has been arrested accordingly. 

What did experts say about the necessity of the contracts?

 Nothing. The prosecutor’s office considered these contracts as unnecessary and surplus so incriminated them. The prosecutor’s office did not ask experts to write their opinion. The indictment declared as fact – without experts’ opinion – that BKV’s marketing activity was totally unnecessary as the company was in monopoly position. On top of all that it was Hagyó who pointed at the unprofessional argument of the prosecutor’s office during the court trial. He namely asked the question that “who has transport engineering, metropolis public transportation-logistics and communication or marketing skills in the prosecutor’s office so he can decide and establish such a serious declaration?”.

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.”

Civil Unity Forum (CÖF) – flyer for almost 40 million

The smear „clown” campaign against the leaders of the opposition united leaders can be even 100 million forint for the CÖF-CÖKA organization which organized the Peace Marches. For the first wave the country was infested with huge billboards, and on the last week they started to spread their 16 pages colored publication in 4 million copies. 

This is shows the opposition leaders in the clown composition which is well known from the billboards. The cost of the campaign is covert by the CÖF-CÖKA. As they still debtor with the cost of the „They ruined the country together” action in the end of 2012 which is focused on Gyurcsány and Bajnai.




Lot of people march with the CÖF, but the supporter is little  PICTURE: ISTVÁN BIELIK


Because in the name of the „civilian” László Csizmadia answered to our paper for the question about their present cost he answered that „we don’t declare in this cases because we said it more times that we are settling and we can be settle”, the Népszava tried to guess the costs for the campaign books. It made us harder that the Hungarian Post Office Ltd. didn’t want to tell us the cost of the spread.

On their website according to their official rate is net 4,5 forint to allocate to the target the advertisement publications, which would mean gross 22,86 million forint, but the Post Office reported that this price is only available for the ”public senders”. (According to our information the Post Office asks from the parties a near tariff as the public senders tariff, which based on the amount in 2010 it got 3,5-4 million „campaign message” to the houses – the editor.) If the state company wouldn’t give a preference for the CÖF-CÖKA which is campaigning for the Fidesz then it would cost 14-16 million forints. 

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.

Justice or No Justice: The Prosecution Manipulates the Indictment, Again

image source: http://madubesbrainpot.wordpress.com

The trial of Miklós Hagyó and 14 other defendants continued in Kecskemét, Hungary on February 28th. During the hearing, the court witnessed another alteration to the indictment. This time, the changes were made to the alleged financial damage accumulated to the Budapest Transit Company (BKV). Unfortunately, the article from which I get this information does not detail the modifications. I would not be surprised if the prosecution and/or the Kecskemét Tribunal obstructs this information from the public.

The prosecution has already changed the charges in the indictment many times. In fact, defendants and followers of the case have dubbed the indictment the “political pamphlet.” This, no doubt, refers to the widely held belief that the case is show trial – a highly publicized trial in which the verdict is rigged. One cannot help but sympathize.

Out of curiosity, I briefly researched the possibility to change the original charges of an indictment in two other judicial systems which are usually considered “fair” and objective.

According to the Department of Justice’s website, it is generally forbidden to alter the original indictment charges in the United States. For example, the 1962 case of Russell v. United States yielded the opinion that if the original charges were changed or amended, then the defendant(s) “could then be convicted on the basis of facts not found by, and perhaps not even presented to, the grand jury which indicted him.”

In England, the Crown Prosecution Service’s website states that amending the indictment requires “an express order of the court to comply with s5(1) of the Indictments Act 1915.” Otherwise, the amendment is null.

Judicial law permits the alteration of original indictment charges in Hungary. I fail to see, though, how that supports a fair trial. If the prosecution can amend or draft new charges throughout the trial, why even bother to create an indictment in the first place?


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

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/

A Recap on the History of the Hagyó Case: What Happened and Who Was Involved?

Zsolt Balogh, left, and Miklós Hagyó in Kecskemét Court in Kecskemét, Hungary

On Wednesday, I said that I was going to make a summary post about my blog, The Hagyó Case.  I want to do this for a couple of reasons.  Firstly, the blog’s readership has increased about 30% over the past week, which is great! Appropriately, I’d like to recap the evolution of the story for those who have recently started following.  Secondly, the story is full of confusing details about the legality of contracts and whether or not those contracts contributed to the financial gain of an alleged criminal organization. I have described the intricacies of the contracts in previous posts, and I will continue to relay the information from subsequent court hearings.  For now, I only want to provide the back story.

In 1998, a successful and wealthy businessman by the name of Miklós Hagyó (Me-klosh Ha-djo) joined one of Hungary’s dominant political powers, MSZP (Magyar Szocialista Párt – Hungarian Socialist Party).  Over the next twelve years, he would climb the political ladder to become a deputy mayor of Hungary’s capital city, Budapest, and a member of parliament.  Within his deputy mayoral capacities, Hagyó supervised the public transportation system of Budapest which is aptly translated as Budapest Transit Company (BKV).  Although Budapest’s public transport system is well-used, the company was annually taking a financial beating.  For example, in 2007 and 2008 the company was publicly indebted over 100 billion forints.  As I type, that is almost 470 million US dollars.  How did the company stay afloat? As I said, they were indebted to the public which translates into the government repeatedly bailed out the company. As a government subsidy, BKV’s business practices were under the watchful eyes of state institutions like the State Audit Office of Hungary, who noticed an employee severance payment scandal which I wrote about here.

Miklós Hagyó was not connected to the severance payment scandal, but it was the spark which lit the fire that was to become the political downfall and eventual imprisonment of the former prominent politician and humanitarian.

In March 2010, a former CEO of BKV by the name of Zsolt Balogh gave two interviews, one to Magyar Nemzet (Hungarian Nation) and another for HírTV.  During these interviews, Balogh stated that shortly after his promotion to CEO Hagyó invited the new executive to his office for what presumably would be a quick professional introduction.  However, according to Balogh, upon entering the office Hagyó was using both of his hands to stuff himself with 40 ounces of cold meat.   Then, he allegedly proceeded to tell Balogh “things must be done around here, and those who do not do it will receive no mercy.  Their throat will be cut.”  After that, Balogh claims Hagyó demanded an upfront payment of 15 million forint (more than $70,000.00 at the time of writing [ATW]).  Furthermore, he would annually need to pay that amount to Hagyó.  According to Balogh, the next day he obliged by giving Hagyó the 15 million forints which were hidden inside of a Nokia phone box designed for packaging.  The former CEO also claimed that he passed around 70 million forint (more than $328,000.00 ATW) to Hagyó over the course of a year.

Quite naturally, one should wonder from what financial source did Balogh pay Hagyó.  Well, this is where the tricky contracts come into play.

The prosecution claims that Hagyó sat atop a criminal organization with BKV’s senior management serving as his loyal henchmen.  The upper management’s purpose was to organize BKV’s business with other companies that were privately or professionally connected to the deputy mayor.  Once the contracts were created and the money was paid out Hagyó allegedly extorted the contract revenues from the managers.

After Balogh made the public statements, Hagyó became the disgraceful symbol of political corruption in Hungary. As a result, the former deputy mayor and member of parliament stepped down from his respected positions. A few months later in May 2010, the general elections occurred, and due to his prior resignation   he had lost his penal immunity. The police arrested him immediately following the governmental change. On May 14, 2010, after a few days of police interrogation, the court sentenced him to pretrial detention.  The prosecutors claimed they possessed evidence which strongly suggested Hagyó intended to flee the country in an effort to avoid legal troubles.

Miklós Hagyó passed nine months in pretrial jail, but due to deteriorating health he spent many months in the prison hospital.

The prosecution spent nearly three years in an attempt to gather enough evidence to put Miklós and 14 other people in jail.  Some presume that the investigators were trying to find evidence which would have connected the allegedly embezzled money to the Hungarian Socialist Party, who just happens to be the political rival of the currently governing Fidesz party.

Regarding the pretrial detention, Miklós’ lawyer requested access to the evidence which was “substantial” enough to keep him in jail for nine months.  Neither the prosecution nor the judge ever provided the evidence, citing that it would jeopardize the “integrity” of the investigation.

The trial is currently on hold for about a month.  So far, the biggest twist has been Zsolt Balogh’s in-court testimony.  He retracted his accusations, saying that the investigators coerced him into accusing Miklós of these crimes.  If he did not oblige to their demands, he would have had significant problems.

Many people might wonder why I chose to create a blog about this case.  I find the story to be morally and socially stimulating, but apart from that I felt that Miklós’ story should be told to the world outside of Hungary. According to BKV’s financial records, much of the work from the controversial contracts benefited the company.  Financially the company was spending less money, yet it was developing the transportation system. The prosecution has also admitted this to be true.

Why, then, is Hagyó accused of running BKV as a criminal organization from which he extorted billions of Hungarian forints?  There are a few different theories to that question.  A particularly strong one suggests that the socialists’ opposition, the Fidesz party, used him as a political pawn to turn the Hungarian populace against the socialist party.  In doing so, they could regain control of the Hungarian government.  Well, they did in May 2010.

Amongst all of the confusing uncertainties of the Hagyó case, one thing is profoundly true.  If the current government of Hungary is willing to manipulate a person’s life, especially the life of a regionally powerful person, then they can do that with anybody.  That is why I have chosen to write about Miklós Hagyó.


Source: http://thehagyocase.wordpress.com

Abandoned: Where Were Miklós’ Allies?

An interesting part of this puzzle, the Hagyó Case, which I have yet to discuss concerns the reactions of Miklós Hagyó’s former political brethren, the MSZP (Magyar Szocialista Párt).

Prior to the Budapest Public Transport Company’s (BKV) scandalous severance payment situation entering into the public sphere, and, subsequently, Zsolt Balogh’s – former interim CEO of BKV – incriminating statements directed at Miklós Hagyó, Miklós was an emerging political figure within MSZP and Hungarian politics. 

BKV case: The counsel locked a stolen car

BKV case: The counsel locked a stolen car

The Public Transportation Company reviewed their civil law claim for damages at the hearing of the BKV case yesterday. The company – recd the findings of facts of the indictment which is more and more weakening – they announced a 1 billion 779 million forints claim, what the defendants have to pay if their guilt proved.

(Photo Source: icongal.com)

We wrote the 1 accused Hagyó Miklós, the former deputy lord mayor is accused „for only” 168 million forints of damage from the putative damage. In the hearing Hagyó Miklós again observed a renounced testimony, at this time he traversed the charges against himself from Regőczi Miklós’s investigation testimony. As we already reported, the company’s former deputy CEO was the fifth who was talking about duress interrogation.

About the working of the counsel Hagyó said, he doesn’t know that based on what they decided that „in the record/register what supposed orders was a crime and what is not, who was questioned as a suspect, who as a witness, and who was not questioned in any way, in the theet of that in the record/register he/she come up as an order giver”.

With this he refers to that in the court it unraveled a few times: the investigations didn’t question/hear important witnesses, they kept back important documents from the defense, and they weighted/made it more serious the before said statements at the set up of the indictment. The hearings most awkward discovered „mistake” was that when the counsel authority locked one of the defendant’s car, when it was stolen in 1999.

Source: http://hagyodosszie.blog.hu/2012/11/16/bkv-per_lopott_autot_zaroltatott_az_ugyeszseg

Original:

BKV-per: Lopott autót zároltatott az ügyészség

Címkék: bkv per hagyó miklós kecskemét regőczi miklós | Szerző: Hagyó Dosszié | 7:37 am

Ismertette polgári jogi kárigényét a BKV-büntetőper tegnapi tárgyalásán a közlekedési társaság. A vállalat - az egyre gyengülő vádirat tényállását átvéve - 1 milliárd 779 millió forintos igényt jelentett be, amelyet a vádlottaknak akkor kell megfizetniük, ha bűnösségük bebizonyosodik.

(Kép Forrás: icongal.com)

Megírtuk, az elsőrendű vádlottat, Hagyó Miklós volt főpolgármester-helyettest a vélt kárhoz képest "csupán" 168 milliós károkozással vádolják. A tárgyaláson Hagyó Miklós ismét egy visszavont vallomást észrevételezett, ezúttal Regőczi Miklós nyomozati szakban tett, őt érintő vádjait cáfolta. Mint arról beszámoltunk, a cég volt vezérigazgató-helyettese volt az ötödik, aki kényszervallatásról számolt be.

Az ügyészség munkájáról Hagyó elmondta, nem érti, mi alapján dőlt el, hogy "a jegyzőkönyvekben szereplő, állítólagos utasítások közül melyik bűncselekmény, és melyik nem, kit hallgatnak ki gyanúsítottként, kit tanúként, és ki az, akit soha, semmilyen minőségben nem hallgattak ki annak ellenére, hogy a jegyzőkönyvekben utasításadóként szerepel". 

Ezzel arra utalt, hogy a bíróságon több esetben kiderült: a hatóságok fontos tanúkat nem hallgattak meg, iratokat tartottak vissza a védelemtől, és súlyozták a korábbi állításokat a vádirat összeállításánál. A tárgyalás legkínosabb feltárt "bakija" az volt, amikor kiderült, hogy az egyik vádlott autóját úgy vette az ügyészség hatóság zár alá, hogy azt már 1999-ben ellopták.

Balogh Zsolt (BKV)

Balogh Zsolt (BKV)

(Photo source: www.index.hu)

Balogh Zsolt, the assigned director of the BKV between 2008. 02. 19. and 2008. 08. 31.

Balogh Zsolt got to the BKV in the April of 2007, after he successfully applied for a job to work as an investment foreman. In the beginning his task was to manage the investments projects, to supervise the preparation of these and to transact them.  According to his statements his first meeting with the politics was in the end of September, beginning of October in 2007, at the company, after he became the deputy engineer manager. Balogh got to the head of the BKV in February, 2008, because the then director Antal Attila got sick. While he was the director, he participated in the management of the company’s cases, even to handle the strikes. After his position as the director of the BKV at August, 2008, he became the global and engineering deputy director, so he was the second person at the company. Until July, 2009, when with common agreement, he left the BKV without a severance payment.

Source: http://hu.wikipedia.org/wiki/Balogh_Zsolt_(BKV)

Original:

Balogh Zsolt (BKV)

 [bevezető szerkesztése]

A Wikipédiából, a szabad enciklopédiából

(Kép Forrás: www.index.hu)

Balogh Zsolt a BKV megbízott vezérigazgatója 2008.02.19 és 2008.08.31. között. ^[1]

Karrierje [szerkesztés]

Balogh 2007 áprilisában került a BKV-hoz, miután sikerrel pályázott meg egy beruházási csoportvezetői állást. Eleinte az volt a feladata, hogy beruházási terveket menedzseljen, felügyelje ezek előkészítését és lebonyolítását. Állítása szerint 2007 szeptember végén, október elején találkozott először a politikával a cégnél, miután műszaki vezérigazgató-helyettes lett. Balogh 2008 februárjában került a BKV élére, mivel a BKV Zrt. akkori vezetője Antal Attila megbetegedett. Vezérigazgatói tevékenysége alatt részt vett a cég ügyeinek intézésében, sztrájkok kezelésében is.^[2] 2008 augusztusi vezérigazgatói megbizatásának lejárta után a BKV általános és műszaki vezérigazgató-helyettese lett, így a cégnél második emberként tevékenykedett. Egészen 2009 júliusáig, amikor közös megegyezéssel, végkielégítés nélkül távozott a BKV-től.^[3][4]