Hungary Raids Orbán-Era COVID Equipment Suppliers In Major Fraud Probe; Fugitive Sought In Indonesia (Worthy News Investigation)

by Stefan J. Bos, Worthy News Europe Bureau Chief reporting from Budapest, Hungary

BUDAPEST (Worthy News) – Hungary’s prime minister confirmed Tuesday that authorities had raided companies linked to multimillion-dollar COVID-19 medical equipment deals arranged under the previous government of Viktor Orbán and his foreign minister, Péter Szijjártó. The major cross-border fraud investigation also involves a fugitive executive believed to be in Indonesia.

“The National Tax and Customs Administration (NAV) has raided companies that did business with Péter Szijjártó’s ministry, supplying ventilators and masks. An international arrest warrant has been issued for an executive,” Prime Minister Péter Magyar announced Tuesday.

The announcement intensified scrutiny of medical equipment purchases made in 2020, during the early stages of the COVID-19 pandemic, when Szijjártó oversaw Hungary’s international procurement efforts.

NAV said financial investigators carried out coordinated raids across Hungary and neighboring Austria early Tuesday, October 27, targeting an alleged criminal organization suspected of laundering more than 3 billion Hungarian forints ($9 million) and evading over 660 million forints ($2 million) in taxes.

According to investigators, leaders of the alleged organization signed contracts with the Ministry of Foreign Affairs and Trade and a state healthcare institution during the pandemic.

COVID EQUIPMENT DEALS

The agreements involved the delivery of 800 ventilators and three million medical masks from China, for which the Hungarian government paid 15.6 billion forints ($47 million).

Officials said the suspects established a network of companies that issued fictitious invoices for information technology services, thereby improperly reducing value-added tax liabilities associated with equipment sales.

At the top of the alleged network was a joint-stock company previously listed on the Budapest Stock Exchange.

Investigators said part of the profits was transferred to a company registered in the United Arab Emirates, while other funds were withdrawn in cash in Hungary.

According to NAV, authorities seized or froze assets worth 1.5 billion forints ($4.5 million) during Tuesday’s operation.

ARRESTS AND FUGITIVE

The tax authority said one suspect was arrested in Austria under a European arrest warrant, while 11 others were questioned as suspects, including two who were subsequently detained.

An international arrest warrant was also issued for an alleged leader of the organization whom investigators believe may currently be in Indonesia.

Authorities have not publicly identified the fugitive or disclosed whether Indonesian officials have been contacted about the case.

NAV’s central criminal investigation department is examining suspected large-scale budget fraud committed as part of a criminal organization, money laundering and related offenses.

A separate investigation by Hungary’s National Bureau of Investigation concerns alleged embezzlement linked to pandemic procurement, including possible overpricing and questions about whether purchased medical equipment was suitable for its intended use.

PROCUREMENT INVESTIGATIONS

Following the change of government, Foreign Minister Anita Orbán filed a criminal complaint on August 25 after reviewing some 300 billion forints ($900 million) in pandemic-era medical equipment purchases. She cited concerns about procurement procedures, inflated costs and equipment that was unsuitable or never used in hospitals.

Szijjártó has also faced scrutiny over his dealings with China, including his decision to become an executive at Chinese electric vehicle manufacturer BYD after leaving politics in July.

Earlier this month, he appeared before Parliament’s National Security Committee to answer questions about his relationship with BYD and government subsidies granted to the company during his tenure as foreign minister.

His appointment raised concerns about potential conflicts of interest because he had helped negotiate BYD’s major investment in Hungary while serving in Orbán’s government.

Szijjártó defended the investment, telling reporters: “I consider it a great success that this factory came to Hungary.”

FORMER OFFICIALS PROBED

The developments come as Magyar’s government intensifies investigations into alleged corruption and financial irregularities dating from Orbán’s 16 years in power, which ended following his election defeat in April.

Last Wednesday, authorities detained former central bank governor György Matolcsy, a longtime Orbán ally and former economy minister, in an investigation into suspected financial crimes involving hundreds of millions of dollars in central bank assets. Matolcsy denies wrongdoing.

Two other former Orbán-era ministers, Balázs Hankó and Miklós Seszták, have faced criminal investigations over alleged misuse of public funds and bribery. Parliament lifted their immunity in September, allowing proceedings to continue.

Orbán’s Fidesz party has denounced investigations against former officials as politically motivated, while Magyar insists that those responsible for corruption must face justice.

Separately, The Wall Street Journal reported that the administration of U.S. President Donald Trump has encouraged Orbán to consider becoming the next United Nations secretary-general, potentially as a candidate supported by the United States, Russia and China.

ORBÁN’S UN FUTURE

The newspaper cited officials from three countries who described discussions about the proposal. However, no formal candidacy has been announced, and Moscow and Beijing have not publicly confirmed their support.

Earlier, Hungarian investigative journalist Szabolcs Panyi reported that figures in U.S. conservative circles had discussed securing Orbán a senior U.N. position that could potentially provide diplomatic immunity. The extent of any immunity would depend on the position involved.

Orbán has rejected allegations of wrongdoing and portrayed investigations targeting his former administration as politically motivated.

His daughter Ráhel Orbán and her husband, businessman István Tiborcz, whose business interests have attracted scrutiny amid corruption investigations, moved to New York with their children in 2025.

However, Panyi recently reported that the family had relocated to London. Tiborcz’s company confirmed that the couple had been living abroad for more than a year but did not confirm that they had moved to Britain.

Authorities have not announced criminal charges against Szijjártó in connection with Tuesday’s operation. The suspects remain presumed innocent unless proven guilty.