In a bid to bolster its fight against corruption and ensure greater accountability in the spending of European Union funds, Hungary’s Integrity Authority has submitted a compelling plea for expanded powers. Tasked with overseeing the allocation of billions of euros within the nation, the Authority, established under EU pressure in late 2022, is determined to break through barriers hindering its effectiveness.
Leadership and Independence
Led by Ferenc Biro, a seasoned expert in forensic accounting and compliance, Hungary’s Integrity Authority operates independently from Prime Minister Viktor Orban’s government. Despite its autonomy, the Authority has encountered obstacles in fulfilling its mandate, citing a lack of sufficient authority to expose and prosecute wrongdoing effectively. The Integrity Authority was created under EU pressure in late 2022 and is independent of Prime Minister Viktor Orban’s government. It is led by a former partner of PricewaterhouseCoopers with two decades of experience in forensic accounting and compliance.
The Call for Greater Powers in Hungary
At the heart of the matter lies a poignant document submitted to Hungary’s Justice Ministry and the European Commission. Dated March 1 and spanning four pages, this document outlines the critical powers deemed essential for the Authority to function optimally. Foremost among these requests is the granting of criminal prosecution powers, a pivotal tool in holding perpetrators of corruption accountable. The Integrity Authority wants the ability to conduct autonomous investigations and mandate prosecution in corruption cases. It says its staff should be entitled to summon, take into custody, or use other coercive measures.
Unannounced Raids and Inspections in Hungary
The Authority’s plea extends beyond mere prosecutorial abilities. It seeks authorization to conduct unannounced raids, inspections, and examinations of premises suspected of malfeasance. Such measures are crucial in uncovering hidden channels of corruption and ensuring transparency in the utilization of EU funds. The Authority is seeking a legal mandate to conduct unannounced searches, examinations, or inspections of the the premises of entities under scrutiny, as well as the ability to take formal measures, such as sealing, seizure, and confiscation.
Robust Sanctions for Enforcement in Hungary
Moreover, Hungary’s Integrity Authority emphasizes the necessity of imposing robust sanctions to enforce compliance with legislation. This includes the power to seal, seize, and confiscate assets associated with corrupt practices. Additionally, the Authority seeks autonomy in conducting investigations and mandating prosecutions in corruption cases, signaling a proactive approach to combating graft. As a component of strengthened investigative capabilities, the Authority also seeks the capability to deploy covert tools and methods independently and levy fines in cases where investigations encounter obstruction.
Context and Significance
The urgency of these requests is underscored by the backdrop of Hungary’s strained relations with the EU overrule-of-law matters. International watchdogs have long raised concerns about the diversion of EU funds to individuals closely aligned with Orban’s nationalist Fidesz party. While the Hungarian government denies such allegations, the suspension of billions of euros in EU funding reflects the gravity of the situation. The European Commission released 10 billion euros of funding to Hungary in December, a move some European lawmakers are seeking to overturn over what they see as horse-trading by Brussels to overcome Orban’s veto on aid to Ukraine.
Tensions with the European Union
Despite some progress in addressing contentious reforms to the Hungarian judiciary, tensions persist. The release of 10 billion euros in funding to Hungary by the European Commission in December drew criticism from European lawmakers, who questioned the rationale behind appeasing Orban’s government.
Upholding Transparency and Accountability
Against this backdrop, Hungary’s Integrity Authority’s quest for enhanced powers takes on added significance. The Authority’s mandate transcends national boundaries, serving as a beacon of hope for transparency and accountability in the broader European context. Its proposed measures not only seek to root out corruption within Hungary but also send a clear message that adherence to the rule of law is non-negotiable.
Access to Information and Data
Central to the Authority’s agenda is the need for unimpeded access to crucial information and data. This includes electronic and direct access to databases housing vital records related to public procurement and financial transactions. Such access is indispensable for conducting thorough investigations and uncovering instances of misappropriation. The Integrity Authority needs to have access to personal information, personal data relating to criminal matters, and confidential data, including classified data. It is calling for electronic and direct access to databases such as the Electronic Public Procurement System.
Imposing Sufficiently Severe Sanctions
Furthermore, the Authority advocates for the imposition of “sufficiently severe” sanctions to deter non-compliance with its recommendations. From issuing warnings to imposing deterrent fines, these measures are designed to reinforce the Authority’s authority and uphold the integrity of the anti-corruption framework.
In essence, the Integrity Authority’s pursuit of greater powers reflects a commitment to upholding the principles of transparency, accountability, and good governance. By addressing systemic weaknesses and fortifying its arsenal of tools, the Authority seeks to pave the way for a future where corruption is met with unwavering resolve and justice prevails. As Hungary navigates the complexities of its relationship with the EU, the Integrity Authority stands as a beacon of hope in the fight against corruption.
