Closing of investigation No. IH_III_6_2023 – framework agreements for the construction of water utilities

The financial corrections imposed by the European Commission concerning framework agreements for the construction of water utilities with a total value of HUF 420 billion will be borne by the national budget instead of the beneficiaries. In March 2017, the European Commission and the European Anti-Fraud Office (OLAF) launched an investigation into the public procurement procedure regarding the programme and directed at the construction. In November 2018, as a result of their investigation, a financial correction of 25%, amongst other things, was determined with regards to the public procurement contracts concerned. However, the expenses of the financial correction was not passed on to the beneficiaries and the successful tenderer.

The Authority therefore called on the managing authority to provide information regularly on the accounting process, the closure of the correction period, and the steps it has taken and is taking to reduce the damage to the national budget.