{"id":9628,"date":"2017-05-09T13:16:23","date_gmt":"2017-05-09T11:16:23","guid":{"rendered":"https:\/\/www.direkt36.hu\/?p=3246"},"modified":"2017-05-09T13:16:23","modified_gmt":"2017-05-09T11:16:23","slug":"rejtett-allami-munkakbol-is-jott-penz-az-orban-csalad-gyorsan-szerzett-milliardjaihoz-2","status":"publish","type":"post","link":"https:\/\/direkt36.exot.hu\/en\/rejtett-allami-munkakbol-is-jott-penz-az-orban-csalad-gyorsan-szerzett-milliardjaihoz-2\/","title":{"rendered":"Rejtett \u00e1llami munk\u00e1kb\u00f3l is j\u00f6tt p\u00e9nz az Orb\u00e1n-csal\u00e1d gyorsan szerzett milli\u00e1rdjaihoz"},"content":{"rendered":"

<\/p>\n

A great many trucks were coming and going a few years ago in \u00c9rd \u2014 a city near the Hungarian capital of Budapest \u2014 where a new sewer system was being built at the time. The trucks delivered tons of concrete and stone needed for the publicly-financed construction project, worth approximately 30 billion forints (96 million euros). In most cases, the trucks were coming from an industrial site on a curvy road close to a village called G\u00e1nt, about an hour\u2019s drive from Budapest.<\/p>\n

That site belongs to one of the business interests of Hungarian Prime Minister Viktor Orb\u00e1n\u2019s family, whose companies have seen spectacular growth in the past few years. Indeed, several firms owned by the prime minister\u2019s father and his two brothers that deal in mining, the manufacture of concrete products, and transportation have nearly doubled their revenues since 2013. Their profits have risen even faster.<\/p>\n

In 2013, they posted a 15 percent profit on a total revenue of 2.7 billion forints (8.6 million euros) \u2014 but in 2015, their profit increased to 30 percent on 5.2 billion forints (16.7 million euros) in revenue. The profits from 2013 to 2015 were not reinvested; instead, the companies\u2019 owners pocketed the money. After deducting the share of other partners, Orb\u00e1n\u2019s family members received nearly 2 billion forints (6.4 million euros) in dividends.<\/p>\n

We could not uncover every detail of this spectacular growth. It\u2019s clear, though, that these companies\u2019 involvement in several public works projects funded by the European Union (a frequent target of Orb\u00e1n\u2019s government) has contributed to their outstanding performance. These companies did not win any public tenders; rather, they participated as sub-contractors or suppliers for those concerns contracted by the state. Thus, they do not appear in the tender-related public databases, which makes it difficult to get a clear picture of the scope of their business activities.<\/p>\n

The Orb\u00e1n family\u2019s financial involvement in public works projects has so far remained largely hidden, with only a few related stories appearing in the Hungarian press. In 2012, business weekly Figyel\u0151 reported that Dolomit Ltd., owned by Gy\u0151z\u0151 Orb\u00e1n, the prime minister\u2019s father, supplied stones for a major railway refurbishment project. Last summer, concrete elements manufactured by Dolomit Ltd. were spotted at the site of a sewer construction project on Budapest\u2019s Margaret Island.<\/p>\n

This Direkt36 investigation provides, for the first time, a comprehensive insight into how the companies run by the prime minister\u2019s family \u2014 including Dolomit Ltd. \u2014 have been participating in public works projects.<\/p>\n

We can only do this work if we have supporters. Become a supporting member now!<\/a><\/strong><\/h3>\n

 <\/p>\n

We managed to obtain delivery notes and other documents that directly prove Dolomit Ltd.\u2019s participation in two large-scale sewer construction projects in recent years. Dolomit Ltd. not only supplied building materials in \u00c9rd, but also for a similar project on the outskirts of Budapest. It delivered the materials to a company belonging to Lajos Simicska \u2014 a close ally of Orb\u00e1n at that time \u2014 and another belonging to L\u0151rinc M\u00e9sz\u00e1ros, an old friend of the prime minister. According to sources involved in the projects, these companies ordered building materials from Dolomit Ltd. despite the fact that they were more expensive than competitors\u2019 products. Some sources added that Dolomit Ltd.\u2019s products are of higher quality.<\/p>\n

\"betonelemek_eng\"<\/a><\/p>\n

Other details suggest that the Orb\u00e1n family has further ties to state projects. By tailing trucks loaded at Gy\u0151z\u0151 Orb\u00e1n\u2019s mine in G\u00e1nt, we discovered that Colas, one of the biggest players in Hungary\u2019s state-funded construction business, is among the clients of Dolomit Ltd. A freight company owned and managed by the prime minister\u2019s brother \u00c1ron Orb\u00e1n mostly lists public works projects among its references. In 2010, Dolomit Ltd. received a technical license for the manufacture of products typically used in state railway construction. And in recent years, a business under state contract owned by L\u0151rinc M\u00e9sz\u00e1ros also appeared among the clients of a third Orb\u00e1n family-owned company.<\/p>\n

Members of the Orb\u00e1n family did not respond to our phone calls or to inquiries we made via e-mail. Several other parties\u2014 including the press office of Prime Minister Orb\u00e1n \u2014 declined to answer our questions.<\/p>\n

Agreement between father and son<\/strong><\/p>\n

Since the collapse of the socialist system in Hungary, the Orb\u00e1n family\u2019s business activities have been hard to separate from its politics. During the privatization drives of the 1990s, Gy\u0151z\u0151 Orb\u00e1n and his business partners managed to get their hands on a company operating a mine in G\u00e1nt. The purchase was facilitated by entities tied to the Fidesz party, an article entitled \u201cBoys in the Mine\u201d revealed in 1999. According to the article, a company close to Fidesz, previously capitalized from the party\u2019s coffers, bought a share of the mine during the privatization period then sold it well below its nominal value to Orb\u00e1n\u2019s father and his partners. Thus Gy\u0151z\u0151 Orb\u00e1n became the majority owner of Dolomit K\u0151b\u00e1ny\u00e1szati Kft. (Dolomit Rock Mining Ltd.). He currently holds a 51.16 percent stake in the company.<\/p>\n

The report created quite a stir. Gy\u0151z\u0151 Orb\u00e1n\u2019s dealings earned his son, who was then serving his first term as prime minister (from 1998 to 2002), much criticism. Opposition politicians pointed out that Dolomit Ltd. was a supplier for the then state-owned Dunaferr; some also alleged that the company supplied materials for state-funded motorway construction projects. Orb\u00e1n\u2019s family emphasized that Dolomit Ltd. had become Dunaferr\u2019s supplier in 1997, a year before Fidesz\u2019s election victory. Further, they denied that Dolomit Ltd. was involved in any motorway construction projects.<\/p>\n

In an August 2001 TV interview, Viktor Orb\u00e1n tried to refute accusations of impropriety in a new way. If he had really wanted to favor his father, Orb\u00e1n reasoned, he would have contracted Dolomit Ltd. to build entire motorways \u2014 instead of merely helping it get orders worth of some tens of millions of forints. Orb\u00e1n also stated that his father had planned to get involved in certain motorway construction projects but dropped these plans at his son\u2019s request. \u201cThis was a very difficult conversation, by the way. He did not agree with this, but eventually he said that there must be certain correlations that I see better than him, and then he accepted it,\u201d Orb\u00e1n said.<\/p>\n

In 2010 Fidesz was reelected, but the agreement between father and son apparently had changed.<\/p>\n

[iframe src=”\/\/www.direkt36.hu\/contents\/banya\/tabs_eng.html” width=”100%” height=”100%” scrolling=”no” ]<\/div>\n

Expensive but good<\/strong><\/p>\n

By that time, the Orb\u00e1n family could offer new products and services for public works projects. Having expanded its portfolio of concrete products, Dolomit Ltd. could now become a supplier for sewer construction projects. An employee of a company with a similar profile as Dolomit Ltd. told Direkt36 that, as far as the source recalled, the construction of \u00c9rd\u2019s sewer system, which began in 2011, marked Gy\u0151z\u0151 Orb\u00e1n\u2019s first foray into the sewer market. According to the source \u2014 who spoke on condition of anonymity \u2014 there are only a few major players in this game. As they keep an eye on competing products and often apply for the same jobs, they track each other\u2019s activities.<\/p>\n

The project management team for the \u00c9rd sewer system allowed Direkt36 to look into their archive, which contains several documents that confirmed our source\u2019s claims. We found dozens of delivery notes which proved that Dolomit Ltd. (among other companies) supplied concrete elements for the project between 2012 and 2013. Other documents revealed that Gy\u0151z\u0151 Orb\u00e1n\u2019s company also delivered crushed stone \u2014 which is typically used for road reconstruction after sewage work \u2014 to the construction site in \u00c9rd. According to the documents, Dolomit Ltd.\u2019s products were most often ordered by K\u00f6zg\u00e9p Ltd., which played a leading role in the project and whose owner, Lajos Simicska, was Viktor Orb\u00e1n\u2019s close ally at the time.<\/p>\n

\"Concrete<\/a>

Concrete elements at Dolomit Ltd.’s industrial site | Photo: Andr\u00e1s Peth\u0151 (Direkt36)<\/p><\/div>\n

This was not the only sewer project that involved Gy\u0151z\u0151 Orb\u00e1n\u2019s company. In the last four-to-five years, several sewer projects in Budapest sourced materials from Dolomit Ltd. Project documents show that Dolomit Ltd. supplied at least 8,400 concrete elements in 2014 and 2015 for two developers.<\/p>\n

One of these developers was Duna Aszfalt Ltd., which took the place of K\u00f6zg\u00e9p Ltd. as Hungary\u2019s flagship construction company after Simicska fell out with Viktor Orb\u00e1n in 2014. Duna Aszfalt Ltd. used Dolomit-supplied manhole elements for sewage channel construction in Budapest\u2019 10th, 16th, 17th, 18th, and 23rd districts. While in some instances Duna Aszfalt did not order manhole elements exclusively from Dolomit Ltd., the firm used only Gy\u0151z\u0151 Orb\u00e1n\u2019s products for its projects in the 17th and 18th districts. The company of L\u0151rinc M\u00e9sz\u00e1ros, another participant in the consortium carrying out the construction, also ordered gravel from Dolomit Ltd.<\/p>\n

According to a source familiar with Budapest\u2019s sewer projects, contractors usually outsource construction work to sub-contractors, who are also entrusted with purchasing any necessary building materials. This was not the case with Budapest\u2019s sewer projects, the source claimed, who asked us not to disclose details that could reveal his or his employer\u2019s identity. According to him, the projects\u2019 main contractor (Duna Aszfalt Ltd.) notified its subcontractors that, as opposed to original plans, it preferred to take care of the purchase of construction supplies. Eventually, these supplies were sourced from Gy\u0151z\u0151 Orb\u00e1n.<\/p>\n

Both the \u00c9rd and Budapest sewer projects had budgets in the tens of billions of forints (around 100 million euros). It is probable that only small fractions of these sums were paid to the business interests of the Orb\u00e1n family. The exact amount earned by the Orb\u00e1ns is not clear, as the documents seen by Direkt36 did not include the prices of Orb\u00e1n-supplied elements.<\/p>\n

The firms responsible for carrying out the projects claimed that they do not have information about payments received by their suppliers. At the same time, several sources familiar with the projects said that Dolomit Ltd. was chosen as a supplier in spite of the fact that its products are much more expensive than those of its competitors.<\/p>\n

An employee of a company which oversaw one of the sewage projects said that the prices of Dolomit Ltd.\u2019s products could be as much as 30 percent higher than those of competing suppliers, although he added that Dolomit Ltd.\u2019s products were of higher quality. An employee of one of Dolomit Ltd.\u2019s competitors also confirmed that Gy\u0151z\u0151 Orb\u00e1n\u2019s products are of good quality. At the same time, several sources noted that contractors are very sensitive to prices and therefore prefer to choose the cheapest supplier. \u201cI was surprised [that] they bought the more expensive [products],\u201d said a source involved in one of the sewage projects, adding: \u201cI thought they surely wanted to nuzzle up to them [the Orb\u00e1ns].\u201d<\/p>\n

The Ideal \u00c1ron Orb\u00e1n<\/strong><\/p>\n

Among the Orb\u00e1n family businesses, a freight and trading company has seen the most impressive growth in recent years. The company was originally called Ide\u00e1lis \u00c1ron Limited Partnership (which translates to \u201cAt an ideal price\u201d \u2014 a bit of Hungarian wordplay referring to the name of the company\u2019s manager, \u00c1ron Orb\u00e1n). Established in 2004, the company was renamed Neh\u00e9z K\u0151 Ltd. (\u201cHeavy Stone Ltd.\u201d) in 2008. It posted a couple hundred million forints (some 100,000 euros) in annual revenue for years, but that number jumped to over 1.6 billion forints (5.1 million euros) in 2015. According to the company\u2019s website, it purchased a fleet of trucks in 2012, but it also delivers goods by rail. Under the \u201cMain References\u201d section, the website lists more than ten projects, most of them linked to public investments. The company provides concrete products and stones for the construction of sewer systems, motorways, and railway refurbishments.<\/p>\n

Archived versions of the site show that its list of references has not been updated since 2013, although the company\u2019s rise began after that year. During Direkt36\u2019s visit to G\u00e1nt, we saw trucks from Neh\u00e9z K\u0151 Ltd. transport materials from the headquarters of Dolomit Ltd. At certain times, we observed four-to-five trucks arriving at the Dolomit Ltd. plant each hour. It\u2019s likely that Neh\u00e9z K\u0151 Ltd.\u2019s relationship with Dolomit Ltd. played an important role in its rapid growth. Indeed, Neh\u00e9z K\u0151 Ltd.\u2019s website shows that the company took over the transportation tasks of Dolomit Ltd. after 2012. According to other market players, the only successful freight companies are those which can closely cooperate with manufacturing firms.<\/p>\n

It seems that \u00c1ron Orb\u00e1n, who became the sole owner of Neh\u00e9z K\u0151 Ltd. at the end of 2016, sees even more potential in the market. In October 2016, he launched a new firm called the NAKK International Trading Company of Raw Materials and Finished Products. \u00c1ron Orb\u00e1n did not answer questions sent to his business e-mail address.<\/p>\n

From the mine to the asphalt mixing plant<\/strong><\/p>\n

Other companies\u2019 trucks also make frequent visits to Dolomit Ltd. in G\u00e1nt. During one of our stakeouts there, so many trucks arrived that a queue formed on the main road.<\/p>\n

On April 18, 2017, we followed a truck that had taken on a load in G\u00e1nt. The white dump truck left the mine at 12:15 p.m., then stopped for a 15-minute break in a nearby village. The truck arrived at its final destination in a town called J\u00e1szber\u00e9ny at 2:45 p.m. It went to an asphalt-mixing plant owned by Colas located on the outskirts of town, where it unloaded its cargo, which seemed to be stones from the distance.<\/p>\n

\"Asphalt<\/a>

Asphalt mixing plant of Colas in J\u00e1szber\u00e9ny | Photo: Andr\u00e1s Peth\u0151 (Direkt36)<\/p><\/div>\n

France-based Colas is one of the major players in the Hungarian construction market and is especially active in public works projects. The majority of the company\u2019s Hungarian work references are state-funded construction projects. Their two ongoing projects are both road constructions commissioned by a state-owned company called NIF (National Infrastructure Development Company). We asked Colas how they use rocks from G\u00e1nt and how they co-operate with Orb\u00e1n-family businesses in other projects. Colas said that \u201cunfortunately they are unable to answer\u201d our questions.<\/p>\n

The buyer from Felcs\u00fat<\/strong><\/p>\n

Direkt36 also found that Orb\u00e1n-family businesses have a number of clients on the market that are not connected to the Hungarian state. A truck from Neh\u00e9z K\u0151 Ltd. that we followed in January 2017, for example, delivered materials from G\u00e1nt to the now privately-owned Dunaferr plant in Duna\u00fajv\u00e1ros.<\/p>\n

The business registry record of a smaller Orb\u00e1n-company, G\u00e1nt K\u0151 \u00e9s T\u0151zeg Termel\u0151 \u00e9s Kereskedelmi Ltd., also show a number of clients that, according to our research, are not connected to public investments. The document lists 14 clients. However, this does not necessarily give a complete picture of the clientele of the Orb\u00e1n-family businesses: the annual revenue of G\u00e1nt K\u0151 Ltd. is well below that of the rest of the family\u2019s firms, and the document only included clients indebted to G\u00e1nt K\u0151 Ltd. at the time of its merger with another company controlled by the Orb\u00e1ns.<\/p>\n

The majority of the 14 clients are smaller private businesses, but two of them are well-known companies that frequently participate in Hungarian public works projects. One of them is the Austria\u2019s Swietelsky Magyarorsz\u00e1g Ltd., a frequent winner of high-value public works construction tenders. The other belongs to L\u0151rinc M\u00e9sz\u00e1ros, who \u2014 besides the previously-mentioned sewer projects in Budapest \u2014 has won several valuable public works tenders in recent years.<\/p>\n

Swietelsky Magyarorsz\u00e1g Ltd. told Direkt36 that, \u201cas a family business,\u201d they cannot provide an answer about its ties to the Orb\u00e1n family. They said that the information we requested relates to the \u201cinternal affairs and trade secrets of the business,\u201d which are not made public \u201cdue to strategic reasons and out of principle.\u201d<\/p>\n

They are well on track<\/strong><\/p>\n

Swietelsky Magyarorsz\u00e1g Ltd. also ordered crushed stones from Dolomit Ltd. for one of the biggest Hungarian railway refurbishments carried out in recent years. In a 2012 article, Figyel\u0151 quoted the state-owned NIF as saying that \u201cDolomit is a major supplier to Swietelsky.\u201d At the time, though, NIF stressed that it had no detailed information about Swietelsky\u2019s suppliers, a statement that the company reiterated to Direkt36.<\/p>\n

It appears, however, that Dolomit Ltd. was planning to participate in railway refurbishment projects by supplying not only stones but also other materials. A document published on the website of the state-owned \u00c9MI Construction Quality Control Innovation Nonprofit Ltd. shows that Gy\u0151z\u0151 Orb\u00e1n received technical approval in 2010 for the manufacture of certain concrete products used for railway construction. This license was valid until February 2015.<\/p>\n

It seems that the Orb\u00e1n family plans to continue the production of concrete construction materials at full blast. At the G\u00e1nt plant, there are big piles of concrete products similar to those that appeared at the site of the sewer construction on Margaret Island last summer. As Dolomit Ltd. did not react to our e-mail and phone calls, they did not let us know for which projects they plan to use these products.<\/p>\n

For the Hungarian company data we used the services of Opten<\/a> and C\u00e9ginfo<\/a>.<\/em><\/p>\n

Noah Buyon contributed edits to this article.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

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