Ökotárs Fundation

The Hungarian government turns up the heat on the NGOs

Yesterday I wrote about Viktor Orbán’s pro-Russian policy, which does not endear him to Washington. Another sore point is the Hungarian treatment of certain NGOs and the attacks of late on independent organizations that receive money from the Norwegian Civic Fund. Barack Obama specifically mentioned the importance of NGOs as watchdogs over rogue states like Hungary. One would think that Viktor Orbán might try to mend fences with the U.S. by retreating a bit on this issue and not pursuing the controversial attacks on the Ökotárs Foundation, the distributor of the Norwegian Civic Funds. But no, these attacks have shifted into even higher gear.

In May the government ordered KEHI (Kormányzati Ellenőrző Hivatal = State Audit) to investigate the case. The Norwegians consider the investigation illegal because in their opinion the money Ökotárs distributed among several NGOs was not part of the Hungarian budget. The money never entered the Hungarian treasury in any way. The funds came straight from an office entrusted with the task located in Brussels.

If the Hungarian government had wanted to remove at least this particular sore point from the agenda, they could have quietly dropped the case and simply forgotten about the report KEHI prepared. Or they could have come out with a very mild reprimand for some lax practices. But Viktor Orbán wouldn’t be Viktor Orbán if he had chosen that path. Instead, yesterday KEHI released its 40-page report in which it accused Ökotárs of mismanagement, fraud, forgery of private documents, and unauthorized financial activities.

As usual, Magyar Nemzet was the first publication to write about the report. Their initial article indicated that the KEHI document is already in the hands of János Lázár. From that point on Magyar Nemzet kept publishing shocking reports about the frivolous items these NGOs spent their money on. The one that caused the greatest uproar was the purchase of tampons. It turned out that the Kékpont Foundation was guilty of this particular crime. The foundation, which deals with drug addicts, gave “motivational” hygienic packages to the addicts, and the tampons were in packages distributed to the women. All these stories came out in Magyar Nemzet before the report was made available to the Ökotárs Foundation.

Yesterday at last the document itself appeared on KEHI’s website. Okotárs over the years distributed 500 million forints and KEHI found something wrong with 200 million worth of the grants. Actually, the questionable items amounted to only 10 million (about $41,000). Yet Lázár is outraged and wants to renegotiate the contract with the Norwegian government. He promptly invited the “appropriate Norwegian minister” to Hungary for a friendly chat. Then, perhaps realizing the absurdity of his suggestion, he added that after all he would be ready to meet the Norwegian politician in Brussels.

Norwegian flag

What will Lázár tell the “appropriate Norwegian minister”? Norway should break the contract with the Ökotárs Foundation since it is not worthy of Norway’s trust. The funds should be distributed by “state or private organizations.” The English translation of the report will be sent to the Norwegian ambassador in Budapest as well as to the European Commission.

But not all accusations are in the KEHI report. Népszabadság reported that investigators at KEHI complained about Veronika Móra’s frequent meetings with American diplomats as well as her visits to the Norwegian embassy. These kinds of contacts are suspect in the eyes of the regime, as we know from Viktor Orbán’s “illiberal” speech in Romania.

Meanwhile Magyar Nemzet kept attacking both the Norwegian government and Ökotárs. Yesterday morning an article appeared in the paper which claimed, on the basis of information coming from KEHI, that Ökotárs passed on important documents for safekeeping to the Norwegian embassy. And that is not all. Officials at the embassy postdated certain documents. While KEHI investigators were at it, they decided to accuse the Financial Mechanism Office (FMO) that handles the Norwegian funds in Brussels of complicity because its official suggested to Ökotárs that it move all its documents out of Hungary.

Late last night journalists from more independent media outlets began looking at the findings of KEHI. András Földes of Index observed that only in history books could one find examples of such accusations that used to lay the groundwork for show trials in the Rákosi period. And, he added, “the officials are actually proud of it.” The proof presented to the journalists did not convince them, but they surmised that the officials of KEHI simply did what was expected of them by the Hungarian government. The results were preordained. Without going into the details, the KEHI officials, by pasting together parts of different sentences, actually falsified the intended meaning of Ökotárs’s CEO. The reporter for Index cites several dubious practices of KEHI that call into question the validity of the charges.

In light of the above it is no surprise that Veronika Móra, CEO of Ökotárs, said to MTI today that it is impossible to respond to “accusations that are not supported by facts.” If the KEHI officials found irregularities, they should have described them precisely, but in the document one finds only generalizations. It is full of phrases like: “it also happened,” “there was also such a case.” Ökotárs is ready to go to court and hopes for a favorable verdict.

As for the Norwegian response to the publication of the KEHI report, according to a brief English-language article on the Norwegian internet site, The Local, the Norwegian government already considered the KEHI probe illegal and it is unlikely that after this most likely fraudulent report they will change their minds. It is worth quoting some passages from this article:

Hungary’s squeeze on foreign-funded NGOs has been criticized by Norway and the United States…. US President Barack Obama last month included Hungary in a list of countries where “endless regulations and overt intimidation increasingly target civil society.”…  Relations between the US and Hungary sank further last week when Washington issued entry bans to six unnamed Hungarian government officials it suspected of corruption. The US charge d’affaires in Budapest, Andre Goodfriend, told AFP on Tuesday that “intimidation of civil society” as well as “centralisation of authority, lack of transparency, and corruption” could prevent the US continuing as an ally of Hungary.

Norway was tough all along but now it must feel even more hardened since the United States is supporting its stance on this matter.