Closing of investigation No VIZSG/9/2024 – Upgrading of an unincorporated area road in Kartal

Based on a whistleblower report, the Integrity Authority has conducted an investigation into
Project ID VP-3295297252, supported under Call for Applications VP6-7.2.1.1-21 titled “Upgrading of local unincorporated area roads”. The project’s aim was to upgrade an existing single-lane agricultural service dirt road in the village of Kartal. The project’s total worth amounted to HUF 287.1 million, with HUF 272.8 million sourced from European Union funds.

Based on available information, the Authority established that genuine competition among market participants was likely not ensured during the public procurement procedure, considering that one substantive tender and three formal but invalid tenders were submitted.

Based on the uncovered information, the Authority concluded that the successful tenderer employed additional subcontractors during contract performance, beyond the one officially declared, without fulfilling its obligation to report them.

Based on these factors, the Authority has initiated remedy proceedings with the Public Procurement Arbitration Board and irregularity proceedings with the managing authority of the project. A decision issued by the Arbitration Board established the occurrence of an infringement and imposed a fine of HUF 1 million.