The left-wing leadership under Budapest Mayor Gergely Karacsony is being buried under an avalanche of corruption cases, with some of the investigations into the grave, economic and bribery-related cases nearing completion. Authorities have already questioned multiple suspects. In the Zuglo (Budapest's 14th district -ed.) scandal, which has reached the top ranks of the Socialist Party, the case has already progressed to the courts, and the accused are facing lengthy prison sentences.
Corruption in Zuglo (14th district)
The Zuglo corruption scandal, also known as the "parking case," erupted in February 2022 when the Central Investigating Prosecutor’s Office (KNYF) brought charges against Csaba Horvath, then-mayor of Zuglo. The formal indictment was filed in August last year. Later, Csaba Toth - then president of MSZP (the Socialist party) in Zuglo - also became a suspect.
According to the charges, Csaba Toth and Csaba Horvath sought to find a company in 2016 to operate a paid parking system in Zuglo, striking a deal at an inflated price while demanding half of the profits for themselves. Prosecutors allege that Mr. Toth personally requested and received 31 million forints for himself and Mr. Horvath, and may have received an additional 10-15 million forints per month, totaling at least 250 million forints in cash. The prosecution asserts that the two left-wing politicians shared the profits.
A Deal That Brought Down the Socialists
The kickbacks were handed over by Zsolt Fuzik, a former influential employee of SYS IT Services Ltd. In the summer of 2021, the National Tax and Customs Administration (NAV) arrested Mr. Fuzik on suspicion of budget fraud committed within a criminal organization. Authorities claim that Mr. Fuzik and his associates operated an invoice factory that issued fake invoices worth 19 billion forints. These fraudulent documents appeared in SYS IT Services Ltd. and its affiliated companies. This is how the Zuglo parking scandal came to light, as a subsidiary of SYS IT Services won the parking operation contract. Later, Mr. Fuzik struck a plea deal and provided detailed testimony to investigators about who received how much of SIS Parking Ltd's profits, and when.
Csaba Horvath Was Allegedly Bribed at a Café
This is how we know that Csaba Horvath may have received part of the bribe at a café near Kalvin Square: "I handed over approximately 10-12 million forints to Csaba Horvath over three to four occasions. He arrived by car near Kalvin Square at the Café Company on Muzeum Street, where I gave him the money. He also mentioned that if he became mayor of Budapest, he would return the favor, acknowledging that I had given him more than originally agreed." - Mr. Fuzik testified.
Key Witness Passes Polygraph Test
Mr. Fuzik did not only testify about the Zuglo socialists but also implicated former Environment Minister Ferenc Baja, from MSZP, and MP Zsolt Molnar, both of whom have been charged by the prosecution. According to Mr. Fuzik, he bribed both of them to ensure their approval for a key municipal tender. He detailed a meeting with Mr. Molnar on August 6, 2019, at 10 a.m. outside the Casa Bianka restaurant in Budapest's 5th district. They then walked to Olimpia Park, where Mr. Fuzik, carrying a black leather Hugo Boss briefcase filled with money, handed it over to Mr. Molnar. The politician reportedly thanked him and said, "We’re good." Mr. Fuzik corroborated in his testimony that he never received the briefcase back.
We understand that Mr. Molnar told several of his acquaintances that it could not possibly be true that he accepted money from Fuzik, because as a politician with expertise in national security matters, he would not have been careless enough to accept a 40-million-forint briefcase under the scrutiny of surveillance cameras. In fact, the Socialist MP admitted in his public statements that he met with Mr. Fuzik, although it would have been foolish to deny this, especially since the information is verifiable with cell phone records. In a previous interview, Mr. Molnar also mentioned that the man testifying against him was merely trying to escape his involvement in a “fake invoice factory” scandal, and that's why he falsely testified against him. It should also be noted that Mr. Fuzik agreed to take a polygraph test, which he passed. The head of the Central Investigating Prosecutor’s Office (KNYF) also commented on this to our newspaper.
Mayor Karacsony Used as a Reference
Regarding Mr. Baja, Mr. Fuzik highlighted that he was well-connected with Mayor Gergely Karacsony and had authorization to discuss IT-related matters. Mr. Fuzik also mentioned that he enjoyed the support of Deputy Mayor Ambrus Kiss, who had decision-making power over which projects would receive funding. "Ferenc Baja once showed me a document bearing the mayor’s signature, appointing him as the city's IT chief advisor. "I personally handed him 30 million forints in bribe money at the small park near Budapest's Varkert Bazar," Mr. Fuzik testified.
Those Accused Face Prison and a Seizure of Assets
The criminal case's preliminary hearing was held in January, with seven individuals facing charges. The Central Investigating Prosecutor’s Office (KNYF) has requested that the politicians and their accomplices receive actual prison sentences, fines exceeding ten million forints, and asset confiscation equal to the amount of illicitly gained wealth. The defendants deny any wrongdoing.
It is particularly interesting that the wife of Peter Magyar’s confidant has also become embroiled in the Fuzik-related invoice factory case. The confidant in question is none other than Dezso Farkas, who returned to work alongside Mr. Magyar as the coordinator of the so-called Tisza Islands. Well, authorities say that his wife, F. Marta, has committed a crime while serving as a senior executive of the Future group, which caused a financial loss of 97 million forints to the state budget. According to the Mandiner news site, she was reportedly the one who personally received the returned cash amounts from Zsolt Fuzik , the primary defendant in the "invoice factory" case. The prosecution also requested a prison sentence for F. Marta.
Did a Left-Wing Lawyer Gain Access to Hundreds of Millions?
Earlier, we reported that Mr. Fuzik was not the first to talk to the authorities about the embezzlement of parking fees. In addition to the Zuglo case, Mr. Fuzik also gave a detailed testimony about a corruption network connected to the opposition. He said nearly one billion forints flowed, in several installments, from Budapest's municipal companies to a left-wing lawyer following the 2019 change of power in the capital. The subsequent fate of this cash— likely generated through fake invoices and with the help of Mr. Fuzik’s associated "invoice factory"— remains a mystery.
So why has this aspect not been incorporated into the criminal proceedings regarding the parking scandal? Well, the answer may be that there was no corroborating evidence. However, it’s still possible that Mr. Fuzik was telling the truth.
A Friendly Favor
Our earlier sources also highlight that Mr. Fuzik’s testimony mentions a mysterious and long-"invisible" individual named Zsolt Z., who is believed to be a key figure in the park maintenance business. According to Mr. Fuzik, Molnár Zsolt was initially distrustful of him, so the money transfer was intended to be arranged with the help of Zsolt Z., someone both men knew well. Sources tell us that Mr. Molnar has had a very close relationship with Zsolt Z. for decades, and several years ago, their wives even ran a joint business together.
However, the planned meetings never took place. Based on the details of his testimony, it is unclear why Mr. Fuzik was unable to meet with Zsolt Z., the planned intermediary. Later, however, Zsolt Molnar, a Socialist Party (MSZP) MP, allegedly contacted Mr. Fuzik directly.
Charges May soon be Brought Against the "Invisible" Man
Zsolt Z. was arrested last March in connection with a separate case. The former owner of Pannon Park Forest Ltd. was detained by the authorities, who suspect him and his associates of setting up an invoice-factory-based criminal network. They are accused of committing large-scale financial fraud, organized crime, and other criminal offenses. This investigation is linked to a November 2023 operation by the Hugarian Tax Authority (NAV), during which officers have seized a rare Ferrari and a Lamborghini, among other items, tied to the aforementioned invoice-factory network. Officers found one million euros in the Ferrari's trunk. The authorities are expected to conclude their investigation soon, and charges could be brought in the coming weeks. More than twenty suspects are involved in the case.
Shared Connections
One of our sources also pointed out that there may be overlapping connections between the invoice-factory networks; the people involved in both the parking business and the park maintenance (landscaping) business are reportedly well acquainted with each other. It’s no coincidence, then, that Mr. Fuzik mentioned Zsolt Z. in his testimony. Zsolt Z. has also been questioned by investigators, including in relation to the case involving Molnar Zsolt.
Opposition-Led Districts Seem Part of Network
A common thread in these cases is the connection to left-wing politicians and municipal governments. Compared to Fuzik, this is even more evident in the case of Zsolt Z., as the corporate network he unofficially controls is deeply intertwined with multiple opposition-led districts, with numerous public funds-related contracts reflecting this connection. The investigative outlet Szabad Europa had previously reported on this issue in a series of articles. The affected districts include Ujbuda (District 11), Zuglo (Distrit 14), District 2, Ujpest (District 4), and Obuda (District 3).
New Developments in Obuda Corruption Case?
According to press reports, the Central Chief Prosecutor’s Office for Investigations, which is investigating the corruption case involving the mayor of Obuda (District 3) and his associates, during a recent search at the municipal offices, seized a contract related to park maintenance and landscaping work.
Currently, Obuda Mayor Laszlo Kiss and his former deputy, Gergo Czegledy, are in custody. However, prosecutors have recently requested an easing for Czegledy to criminal monitoring, and a court decision on this matter is expected by March 20. Additionally, new information suggests that one of the previously detained individuals has been conditionally released, possibly as part of a deal in exchange for cooperation, as others have already done in this case.
Network of Trusted Allies
Regarding Budapest district-level ties, Szabad Europa previously reported that a few key figures, including Zsolt Z., play a central role in fraudulent invoicing, parking-related schemes and park maintenance scandals. According to the outlet’s sources, Zsolt Z. has been working with Zsolt Molnar and opposition politicians affiliated with Molnar for decades regarding municipal tenders.
This group was originally linked to the network of socialist politician Miklos Hagyo, who was arrested following the 2010 government change. Sources now refer to them as “the Hagyo orphans,” who are now aligned with Molnar. Among them are Norbert Trippon, the recently elected mayor of Ujpest (District 14) and former MSZP politician now affiliated with DK, as well as Gergely Orsi, the mayor of District 2.
House Search at Ujpest Mayor's Residence
Prior to the local elections, authorities searched the residence of Trippon Norbert in connection with a company involved in building renovations. This company, suspected of fraudulent invoicing worth billions, allegedly used public funds to renovate Trippon’s house.
This case currently has three suspects, one of whom has broken down and provided testimony about illegal financial transactions linked to DK-led municipalities.
Trippon also owns a vacation home near Zsolt Molnar’s holiday property in Zamardi. According to Szabad Europa’s sources, Molnar’s house has hosted numerous lavish parties attended by Zsolt Z. and several socialist politicians.
Overbilling Scandal
A company linked to Zsolt Z.’s business network, Harmat Kert Kft., is under investigation for a suspicious contract with a municipal company. Law enforcement authorities suspect that the contract involved tens of millions of forints in overbilling. The Budapest Police Department (BRFK) confirmed that the investigation is ongoing, although no official charges have been filed yet.
This case has also raised concerns within Budapest’s municipal utility company, Budapest Kozmuvek Nonprofit Zrt. (BKM), led by Imre Martha. Martha needs no introduction, but as a refresher, he is Mayor Karacsony's key confidant and his name has arisen in several scandals and numerous articles about his wealth and luxury lifestyle.
The Name of the Ship: Escape
He is the owner of the Balatonalmadi marina through a company, Vitorlas Kikoto Zrt., where he has exclusive management rights and primary ownership personally and through his real estate company Lazar Houses. His yacht, valued between 25-30 million forints (63-75 thousand euros), is docked there. The very telling name of the yacht is "Escape".
Sources also claim that leaders of the construction company A-Hid have been seen at the marina. Given that business negotiations often take place on yachts, it is likely that the chief figure in Budapest’s municipal operations has personal ties to the bridge construction company heads
Five Suspects in Budapest Fake Invoices Case
A-Hid attracted attention last year due to its involvement in the highly overpriced renovation of Budapest's iconic Chain Bridge under Karacsony's mayorship. The tax authority and police are conducting investigations.The scandal erupted after the authorities uncovered a fake invoicing scheme run by former attorney Mor Vig.
Between November 2020 and July 2022, A-Hid transferred 1.4 billion forints (over 3.5 million euros) to Vig’s company, Sunstrike Hungary Kft., of which 900 million (almost 2.3 million euros) was funneled on the same days into Vig’s personal and legal deposit accounts before being withdrawn in cash. Following Vig’s disbarment in January 2022, a new intermediary, Daniel H, took over, transferring to his legal deposit account the remaining monies approximately 500 million forints (almost 1.3 million euors) going to Sunstrike , followed similarly by cash withdrawals. So far, five suspects have been interrogated in the investigation of Vig.
Did Opposition Parties Benefit from Chain Bridge Funds?
The case took a turn when an anonymous informant sent a letter to former oversight government commissioner Gyula Budai, alleging that Vig regularly "settled accounts" at a security company’s office at the Mammut shopping center. The letter suggests that the roughly 1.5 billion laundered cash from the Chain Bridge project was handled there, implicating the security firm’s leadership in the scheme. Budai also revealed that family ties exist between A-Hid and the security company.
Moreover, sources claim that a portion of these funds may have been funneled to Budapest’s left-wing political elite, making this scandal part of a broader pattern of financial misconduct sapping public funds from the city.
Three Criminal Investigations Launched
Budai filed an official complaint, leading the National Investigation Bureau to open an inquiry into bribery. The case was later transferred to the Tax Authority (NAV), which was already investigating Mor Vig and his associates for budgetary fraud. Another complaint, filed by Istvan Tenyi, led to an additional investigation into embezzlement. These probes have now been merged for efficiency.
Kínos hajótender
Boat Tender Scandal
Among the various financial crimes, the recent scandal involving a fraudulent boat tender exemplifies the opacity of Budapest’s municipal operations. In 2021, the docks and vessel traffic company Magyar Kikoto Fejleszto és Hajozasi uzemelteto Zrt. won a contract to operate Budapest public transport company's (BKV’s) ferry services. However, the Public Procurement Arbitration Board launched an investigation after suspicions arose that the reference company, Silverline Kft., lacked the necessary licenses, apart from being the former director of the docks management company. The police investigation, now concluded, that forged documents were used. The former CEO of the dock management company Magyar Kikoto Zrt. was reprimanded by prosecutors for using a false document. Despite the severity of the case, Karacsony and his administration remained silent throughout the scandal.
Karacsony’s Inner Circle Implicated in Fundraising Scandal
One of the most politically damaging cases involves the 99 Movement, a campaign organization linked to Budapest Mayor Karacsony, and their donation collecting and campaign financing. In the summer of 2023, the National Information Center (NIK) declassified a report revealing that between August 2021 and September 2022, Gabor Perjes, the movement’s treasurer, made 19 cash deposits totaling a value of over 500 million forints (over 1.2 million euros)—primarily in euros and British pounds into the organization coffers. An investigation into budgetary fraud, money laundering, and document forgery was launched, following an internal review and official complaint by OTP Bank, where the organization's account was held, which revealed that the cash deposits far exceeded what could realistically fit into the donation boxes used by the movement. This debunked Karacsony’s claims that the amassed funds were micro-donations provided by members of the public.
During the probe, authorities conducted two searches at the law office of Karacsony’s legal advisor, Csaba Tordai. Evidence suggesting document forgery was reportedly seized. The scandal forced Perjes, the other key figure in he 99 Movement, to resign after authorities named and questioned him a suspect in the case.
