Closing of investigation no. ELN/57/3/2024 and LN/57/3/2024 (2) – commercial investments in Tiszacsege

The Integrity Authority has concluded an investigation into project no. TOP-2.1.2-15-HB1-2016-00008, titled “Building a green community in Tiszacsege”, which was implemented by the Municipality of Tiszacsege as beneficiary.

According to the notification issued to the Authority, the beneficiary made a commitment to build a public park; a community, active recreational area (outdoor gym); a green corridor; a marketplace; and a commercial and service house during the implementation of the project in Tiszacsege. It is suspected that the latter, instead of housing stores, is being used as a community centre by the beneficiary.

The investigation conducted by the Authority confirmed this: since the municipality had not obtained the license required for legal operations by the time the investigation was concluded, the building is not being used to boost the economy, and no tenants were present there. Therefore, the Authority initiated an irregularity procedure. However, the investigation by the Authority confirmed that the facility still served the community’s interests, and the Municipality of Tiszacsege had committed to obtaining the license. Meanwhile, the Municipality received the license, of which the Authority was then informed by the Managing Authority.

Moreover, the Authority has conducted an investigation into project no. VP6-7.2.1.1-20, titled “Infrastructural and equipment development of markets for sales of local products”, the beneficiary of which was likewise the Municipality of Tiszacsege.  The town was awarded HUF 91 million in European Union grants for the construction of a market hall worth a total of HUF 101 million, but the notification sent to the Authority argues that this investment is redundant, considering that a market hall has already been completed under the TOP project.

Based on the information gathered during the investigation of the Authority thus far, it cannot be confirmed whether there has been a violation of the financial interests of the European Union. Furthermore, the risk of double funding cannot be confirmed either, as the implementation sites, project objectives, and duration of the TOP project and the VP project are all different. Since the construction of the market hall has not yet started (the date for completion was changed to 31 December 2024), the Authority has issued preventive recommendations to the Managing Authority, suggesting the continued monitoring of the project’s implementation.