BUDAPEST – Hungarian authorities have opened criminal investigations into a prominent media executive whose companies received nearly $1 billion in government contracts while working for former Prime Minister Viktor Orban’s administration.
Law enforcement officials announced Tuesday they are examining the business operations of Gyula Balasy, whose media companies created political advertising campaigns for Orban’s government over more than ten years. Investigators suspect financial misconduct and money laundering activities.
The announcement follows Balasy’s decision to offer his media companies and investments to the Hungarian government as new Prime Minister Peter Magyar prepares to take office. Magyar’s center-right Tisza party defeated Orban in last month’s election, ending the former leader’s 16-year tenure.
Balasy defended his decision to transfer his assets, stating he offered his companies to the state “not because I have something to hide or because we have done something unlawful or wrong.” He confirmed that authorities froze multiple company accounts on Monday of last week.
The media executive’s Lounge Group did not respond to requests for comment from news organizations.
Magyar, who will be sworn in as prime minister on May 9, has promised to combat corruption and “re-acquire stolen state assets” as part of his administration’s agenda.
Hungarian tax officials blocked international money transfers by individuals connected to a senior Orban advisor on April 28, according to Magyar’s earlier statements.
Police revealed Tuesday that their investigation began after receiving information from NAV, the country’s tax authority special unit. Officials are pursuing charges of misappropriation and money laundering “against an unknown perpetrator.”
“These proceedings include a probe into issues related to the events organising group of companies, which was revealed by the managing director himself in the press,” authorities stated, referencing Balasy’s Monday interview with news website Kontroll.
“During the investigation, funds have been seized and accounts have been frozen,” law enforcement added.
A second investigation has been launched into the same business group “with relation to overpriced contracts on suspicion of misappropriation of funds against an unknown perpetrator,” according to police statements.
Balasy’s companies created Orban’s recent anti-Ukraine political campaign, which portrayed the April election as a decision between war and peace. His firms also developed previous anti-immigration campaigns, securing hundreds of contracts through Orban’s National Communications Office.
According to Transparency International, Balasy’s three companies – Lounge Design, New Land Media and Media Dynamics – received state contracts totaling 295 billion forints ($960.38 million) between 2019 and 2021. Most contracts came from the National Communications Office, which managed Orban’s campaigns and played a crucial role in his electoral victories.
