Allegations remain under investigation
Witness statements reported on July 6, 2026, alleged that politicians associated with Fidesz and the Hungarian Socialist Party, or MSZP, shared proceeds connected to public contracts in Budapest’s Óbuda district. The claims have not produced a final court judgment, and several people implicated have denied wrongdoing or knowledge.
A central witness is former MSZP deputy mayor Gergő Czeglédy, who was arrested on corruption charges in 2024 and spent nine months in custody. Under a cooperation agreement with prosecutors, he described what he alleged was a long-running arrangement spanning changes in the district’s political leadership.
According to the published testimony, then-Fidesz deputy mayor Péter Puskás sought businesses that would return part of their profits after receiving municipal work during former mayor Balázs Bús’s administration. Czeglédy said he arranged for an existing company, KBT Építő Kft., to be placed formally under an acquaintance’s name while he retained actual control. He said KBT performed real maintenance work but that he did not closely track its precise operations, instead regularly collecting profits.
Czeglédy alleged that dividends were divided equally between him and Puskás. When an initial nominal owner wanted to stop in 2017 as turnover increased, the company was sold at face value to another acquaintance. Under the alleged arrangement, that person received a salary and 5% to 10% of profits, while withdrawing the remainder as dividends for transfer to Czeglédy and Puskás.
Pannon Park Kft. owner Zsolt Z. gave a related account. Pannon Park repeatedly secured framework contracts worth billions of forints from 2013 for work including parks, playgrounds, pavements and some roads. He alleged that Puskás approached him around 2015 or 2016 and requested that bids accommodate payments equal to 8% to 10% of Pannon Park’s annual net revenue, amounting to at least HUF 100 million to HUF 120 million.
The testimony described work under jointly won procurement as divided 50% to Pannon Park, 20% to Penta Általános Építőipari Kft. and 30% to KBT. Daily News Hungary reported that KBT had about HUF 1 billion in annual revenue in 2022 and 2023 while generally employing two people, and revenue of HUF 2.78 billion in 2024. Much of its work was allegedly outsourced.
The political allocation was also said to change after the October 2019 election. Zsolt Z. recalled a November meeting at which an earlier 70%-to-Fidesz and 30%-to-MSZP division was allegedly reversed after the opposition gained control. Czeglédy further claimed that an understanding dating to 2006 involved sharing proceeds and avoiding attacks on sensitive municipal matters.
Current mayor László Kiss denied knowing of the alleged corruption or KBT before the investigation became public. Bús denied involvement or benefit, while Puskás had not publicly admitted the allegations. Prosecutors continued examining whether the asserted cross-party agreement existed and how long any scheme operated.
