VIZSG_5_2024 (procurement of ionisation equipment) and VIZSG_17_2024 (procurement of sensor calibration equipment)

VIZSG_5_2024 – Procurement of ionisation equipment

According to a whistleblower report received by the Integrity Authority, the acquisition of GINOP grant funding related to investments implemented in the town of Csákvár may have been achieved through systemic corruption, adversely affecting businesses operating fairly.

The investigation found that the company concerned purchased two ionisation devices from the same Slovakia-based company under two separate GINOP projects and purchased a third ionisation device from another Slovakia-based company under a Rural Development Programme (RDP) project.

The Authority approached the On-site Audit Department for Economic Development Programmes (GFP) of the Ministry of Public Administration and Regional Development in order to conduct on-site audits in relation to the two GINOP projects.

The Authority initiated irregularity proceedings with the Hungarian State Treasury in relation to the RDP project. The Hungarian State Treasury launched irregularity proceedings on 26 April 2024 and simultaneously informed the Authority that because of the well-founded suspicion of budget fraud, as defined in section 396 of Act C of 2012 on the Criminal Code, it considered it justified to file a criminal complaint with the investigating authority with competence to conduct the proceedings. The irregularity proceedings have been suspended until a decision is made by the investigating authority.

The Authority issued a recommendation to the Directorate General for the Implementation of Economic Development Programmes, acting as the Managing Authority, with a view to establishing procedural and control arrangements that ensure that the assessment of maintenance reports does not exceed the deadline set out in the relevant audit trail.

VIZSG_17_2024 – Procurement of sensor calibration equipment

According to the anonymous report received by the Integrity Authority, the Beneficiary is not operating the equipment procured under a GINOP project at the project implementation site.

Based on a review of the documentation of the irregularity proceedings conducted by the managing authority, as well as the documents produced during the on-site audit, the Authority’s investigation found that in accordance with the Granting Decision, the project concerned in the report is being operated at the implementation site during the maintenance period as well. Thus, no prejudice to the European Union’s financial interests could be established.