Orbán took office for the first time in 1998 at the helm of his right-wing Fidesz party, becoming at 35 the country’s second youngest leader. Already his modus operandi was becoming apparent. He had little patience for negotiation, seeking to sweep aside parliament and others who stood in his way. His administration was marked by a number of corruption scandals. In spite of the problems, Western governments saw him as a reliable ally. Hungary was joining Nato and the European Union.[...]
Old school friends, neighbours and football mates (he was obsessed with the sport) made fortunes. The more control he seized, the easier it became to distribute largesse – and to receive loyalty in return. Self-styled entrepreneurs queued up to ‘work’ with him. Except they weren’t particularly entrepreneurial. It was all about state assets, or ‘state capture’ as it came to be known.
Unlike famous Russians such as Roman Abramovich or Oleg Deripaska, their Hungarian equivalents are not household names. Nor do they count their money in billions. For them it tends to be merely hundreds of millions. But as a proportion of national income, it is still not to be sniffed at.[...]
Perhaps the most exotic is Lorinc Meszaros, a former gas fitter and mayor of Orbán’s home village of Felcsut (a village where they built a football stadium to accommodate a crowd more than twice the size of its population). Thanks to a number of state contracts, he jumped to number five on the rich list, his wealth soaring five-fold in just one year to £330 million. Asked by reporters how he had grown his business faster than Mark Zuckerberg, he declared: “maybe I’m smarter”.
Hungary has built this system from within the European Union – with EU funds. Some 60% of state contracts, billions of Euro, are funded by the EU. The Corruption Research Centre Budapest, a non-governmental organisation, analysed all public procurement contracts from 2010-16. It found that the aggregate value of contracts won by four Fidesz-linked businessmen (including the prime minister’s son-in-law) was 13 times larger than the size of other contracts. Their total haul came to £1.8 billion. Sometimes contracts are put out to tender; sometimes tenders take place, but competitors know they are going through the motions.
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