Complaint no. IH-VI/51/2023

As a result of the investigation procedure conducted in accordance with Act XXVII of 2022, The Integrity Authority filed a complaint against unknown person at the Criminal Directorate General of the National Tax and Customs Administration for the offence of budget fraud and the misdemeanour of using a forged private document on 26 July 2023.

The objective of the investigation procedure conducted by the Authority was to investigate the use of European Union funds provided for certain projects (water management in a village and the infrastructural development of a related beach) concerning conflict of interest, tenderer independence, supplying of false data, mandatory data content of invoices, technical necessity and justification, and conformity with the objective of the Calls.

In the course of the investigation procedure, the Authority has ascertained

• the suspicion of the violation of obligations of conflict of interest,
• conflict of interest arising from the involvement of a close relative,
• the suspicion of breaching legal regulations in relation to conflict of interest and tenderer independence,
• the possibility of violation of governing rules concerning the mandatory data content of the invoice issued by the tenderer, and
• the suspicion of breach of regulations set out in the Calls concerning, in particular, the technical and professional necessity and justification,

which may have a negative impact on the implementation of European Union financial support and the sound financial management of the European Union budget.

Of the above investigative findings, it is relevant to the Authority’s criminal complaint that there is also a lake located on one of the pieces of real estate designated as the main project site, which is owned by the municipality, while the other piece of real estate designated as a secondary project site is the area of the beach and campsite adjacent to the lake. This piece of real estate is owned by a kft. (limited liability company), which is also the operator of the beach.

The owner and one of the directors of this company is the mayor of the village, while a close relative of the mayor is also one of its directors.

In its declaration of conflict of interest, the mayor of the village declared to have no conflict of interest in relation to the project. In doing so, the mayor provided false data, which had substantially influenced the grant decision.

In the present case, the conflict of interest is serious because, although the municipality of the village is the beneficiary, the benefit deriving from the use of the European Union funds will actually go to the company operating the beach under contract, which is owned and directed by the mayor, with his close relative also being an interested party.

The case is still pending.