Page 16 - bne_newspaper_January_18_2019

Central Europe
January 18, 2019 www.intellinews.com I Page 16
The main example of budget overshooting in state-financed projects was the organisation of the FINA 2017 World Aquatics Championship. Initially, organisers put the cost of holding the multi-sport aquatic event at HUF14bn, excluding a new swimming arena.
Investment costs kept climbing as time passed and the final price tag of the largest sporting event held in Hungary came close to HUF130bn, nearly ten times the original estimate. Construc- tion of the Duna Arena, the main site for the event, cost taxpayers some HUF50bn. Organisers col- lected HUF0.8bn in ticket revenues but marketing costs were more than ten times that figure.
The new state agency will have the power to oversee each step of the investment process from planning to completion in projects worth less than HUF700mn. The same will apply to all investments carried out by local governments from next year.
MPs from the ruling party told business weekly HVG that BMSK will ensure that projects are completed in a cost-effective and transparent way to end the waste of money, a synonym for
corruption, a word banned from the dictionaries of Fidesz MPs.
The government has also approved the establishment of a similar agency for holding sporting events. Hungary will host a number of major sporting events this year. Previously, the sport federation was in charge of organisation.
In order to do their job effectively, these new agencies will require hundreds of staff and a big budget. The government has already earmarked HUF5bn in financing.
The prime minister has declared zero tolerance for corruption, but studies show Hungary slipping in world rankings. Corruption has become a fundamental trait of the system, according to Amnesty International. A handful of oligarchs with close ties to Orban have dominated state tenders and even in smaller contracts, critics of the government stand zero chance of winning.
Meszaros, a former gas fitter and a childhood friend of Orban had become the richest person in Hungary by 2018, with an estimated wealth of HUF381bn.