Position Paper: Good Governance and Corruption Risks in Hungary

Created: 22nd May, 2008 11:51	print	send

Yearly good governance indicators of the World Bank have indicated a deteriorating situation in Hungary in the past years as far as government accountability, effectiveness, political stability, regulatory quality, rule of law and control of corruption are concerned. In all these areas Hungary has shown a negative trend during the past years.

Fidesz therefore believes that the work undertaken by Transparency International to analyze corruption risks in Hungary in the frame of a National Integrity System Study is crucial.

Hungary's Corruption Perceptions Index has remained unchanged in the past years, which indicates that no serious attempts were made in Hungary in order to tackle corruption. Even the most serious cases of corruption have remained unprosecuted, uninvestigated or unpunished, creating a general perception that in Hungary illegal and corrupt deals and bribes are normal practice. This perception is further reinforced by lack of transparency and accountability in the functioning of the government, state administration and the law enforcement agencies.

Fidesz believes that corruption is one of the most serious illnesses in a modern market economy undermining its very base, fair competition. By distorting competition and the market, it has far more serious consequences, as it hampers economic growth and competitiveness, discourages investment, shows a tendency to increase social inequality and undermines public trust in the democratic institutions and in the government.

Fighting corruption is therefore one of the most urgent tasks in Hungary.

Transparency International has identified - with the invaluable help of representatives of countries with the biggest investments in Hungary - areas that are the most important to be improved in order to decrease corruption risks in Hungary, and also made some recommendations. In our view, concerted and immediate actions are required to address the following issues of paramount importance: improving and simplifying public procurement, introducing codes of ethics, as well as objective criteria for recruitment and promotion in public administration, de-politicization of the civil service, the judiciary and law enforcement agencies, reinforcement of the prerogatives of the State Audit Office and implementation of its recommendations, and lastly, setting up firm standards in party financing and lobbying. Fidesz feels it important to reiterate the findings of the report, namely anti-corruption measures are carried out and are based on political interests, not on professional grounds.
Collecting and handling of data of public interest and freedom of information also require immediate attention. Very little data of public interest is disclosed, citizens are not aware of their rights to information, therefore very few of them challenge decisions in relation to this matter, and sanctions for non-compliance are not in place, either. We continue to challenge the unacceptable practice that Reports of the Government Control Office (KEHI), which are supposed to play a crucial role in fighting corruption, are not publicly available.
According to the TI Study, 90% of the procedures are carried out in a non professional way as far as public procurement is concerned. That number already includes cases of corruption which contribute to serious losses. Systematic corruption makes procurements 20-25% more expensive. In Hungary the system is too complicated, non-transparent, and the review mechanisms do not work.

"Whistleblower protection", which is completely lacking in Hungary, is also linked to this problem. There are no regulations, no culture of whistleblower protection whatsoever.

In order to tackle these problems, a long term program to fight corruption should be adopted urgently as stipulated in the relevant government decision. It should be built on national consensus and once adopted, it should be implemented immediately. Fidesz is of the opinion that consultations should start about the recommendations made by Transparency International and about how to transform them into laws and regulations. We urge the government to improve all these measures without hesitation in order to foster change beneficial to investments, the economy and the public attitude.