Hungary's foreign ministry has filed a criminal complaint alleging possible fraud in a $965 million deal for COVID-19 ventilators purchased by the previous government. The complaint targets potential fraud and a breach of fiduciary duty in the acquisition of approximately 17,000 ventilators from China in March and April 2020.
Foreign Minister Anita Orbán announced the complaint Tuesday, stating that a ministry investigation uncovered "suspicions of breach of fiduciary duty causing particularly substantial financial loss and other criminal offenses." She noted that the investigation reviewed tens of thousands of documents, some of which appeared to have been "unsuccessfully attempted to delete them" through digital tools. The probe also raised questions regarding "the responsibility of the ministry’s former senior leadership."
The Hungarian government's official statement indicated further irregularities, including the use of intermediary companies that saw significant revenue increases from the transaction. Some of the purchased ventilators were found to be defective, and a substantial portion was never deployed. The government also cited millions of dollars in storage costs for the unused devices.
During his tenure, former Prime Minister Viktor Orbán's government, and specifically former Foreign Minister Péter Szijjártó, cultivated close ties with China. Szijjártó oversaw not only the ventilator purchase but also the procurement of 5 million doses of the Sinopharm COVID-19 vaccine. Last month, Szijjártó resigned his parliamentary seat to accept an executive role with Chinese electric vehicle maker BYD. His move prompted accusations of a conflict of interest, given the substantial government subsidies BYD received in Hungary during his time in office. The Hungarian government has also launched an investigation into large investments made by BYD during Szijjártó's tenure.