Embassies warn over lack of transparency

Thursday, 26 November 2009
In the wake of recent scandals – such as the local council in the city of Pécs seizing control of a local water utility firm in which the French firm Suez had a minority stake and the controversial granting of national radio broadcasting rights to two newcomer firms at the expense of long-time broadcasters Danubius and the US-owned Sláger Rádió – the embassies of nine countries issued a joint statement last Thursday calling on the government to increase transparency and clamp down on corruption.

For legal reasons, the embassies themselves refrained from giving any specific examples of cases of opacity or suspected corruption.

Economy Minister István Varga criticised the joint statement, saying it did not present a balanced view of the situation in Hungary. Prime Minister Gordon Bajnai quickly agreed to meet all nine ambassadors this Monday. Tamás Kende, an international lawyer, told the daily Népszabadság that Hungary had received a “serious warning from the developed world” about corruption in public life. “This type of thing is usually received by African states and South Asian dictators,” he said.

‘Significant new instances of non-transparent behaviour’

The statement issued with the support of the embassies of Belgium, France, Germany, Japan, Norway, Switzerland, The Netherlands, the United Kingdom and the United States: We represent countries whose companies provide the majority of Hungary’s foreign direct investment:

As friends of Hungary who have witnessed its recent difficulties and its concerted efforts to tackle the effects of the global economic crisis, we look forward to the recent encouraging predictions of renewed economic growth in Hungary becoming a reality.

An important component of that predicted growth will reflect the decisions taken by current and potential foreign investors, many of whom come from the countries we represent. It is therefore with great concern that we hear of significant new instances of non-transparent behaviour affecting investors in such areas as public utilities, broadcasting, and elements of the nation’s transport infrastructure. These reports could hinder the investment for which Hungary, like every other country, is competing.

As the global economy recovers, foreign investors will make their own decisions about where they will commit their resources. As friends of Hungary, we hope that the investment climate here remains one that makes the nation an attractive destination for those resources, rather than the opposite.

Transparency can be a critical competitive advantage. Passing, implementing and enforcing new anti-corruption legislation could be an important factor in helping meet the aspirations of Hungary’s citizens for renewed economic gorwth and prosperity.