tax fraud

No Internet tax but attacks on the United States continue

On Friday Viktor Orbán was still determined that after a national consultation the internet tax would be introduced sometime next year. Today he retreated from this position. He suggested that the internet providers’ unanimous opposition to the tax was the reason for removing the item from the government’s 2015 budget proposal. I very much doubt that the joint letter of the providers addressed to Mihály Varga had anything to do with the decision. Rather, Orbán recognized that his attempt to simply postpone the decision would not appease the multitudes of internet users. There was a very good possibility that the demonstrations would be repeated from time to time, further damaging the reputation of the government and Viktor Orbán personally. Despite this retreat, however, I have the feeling that in one way or the other curtailing internet access will be back on Viktor Orbán’s agenda. He is only too aware that almost all of the large demonstrations against his government were organized on Facebook. Social media is a danger to autocrats.

Now that this issue is behind us, I would like to return to the Orbán government’s relations with two of its adversaries at the moment: the United States and Norway. You may recall that János Lázár invited the “appropriate Norwegian minister” to meet with him either in Budapest or in Brussels. I predicted that Vidar Helgesen, the minister in question, would not oblige. And indeed, Tove Skarstein, Norwegian ambassador in Budapest, held a press conference today where she announced that Norway does not recognize the right of the Hungarian government to investigate the Ökotárs Foundation. Norway is in the middle of conducting its own probe, which will be ready by the end of November. Until then, the monies of the Norway Civic Fund will continue to be distributed through Ökotárs. It is unlikely that the Hungarian government will be the winner of this dispute. So far the Orbán government has been left holding the short end of the stick: the Norwegian Funds suspended payment of some 40 billion forints that the Hungarian government was supposed to distribute for various projects.

After the meeting of the Fidesz parliamentary caucus a journalist asked Viktor Orbán about the U.S. travel ban on the six Hungarian officials and businessmen. As we know, the reason for the ban is not just simple corruption but also American fear that the reported cases would not be investigated by the police and the prosecutor’s office. In plain English, there is a well-founded suspicion that the government is complicit in the crime itself.

Viktor Orbán does not like to talk about this sensitive topic, and apparently the subject did not come up at today’s meeting of the parliamentarians. Of course it didn’t because it was not on the agenda. When asked whether he knows the names of the six people in question, Orbán’s answer was: “if the Americans tell me, then I will be glad to tell.” The game Orbán is playing is rather simple-minded. He would gladly investigate and if necessary bring the culprits to justice, but the Americans with their stupid laws prevent him from doing so. One has to be very naive to think that Orbán does not know the names or that the prosecutor’s office could not investigate their cases.

It seems to me that there is still a huge confusion about how to deal with the frayed American-Hungarian relations. On the one hand, Viktor Orbán at least twice tried to discourage the far-right leaders of the Peace Marches from organizing an anti-American rally. On the other hand, members of his government are accusing Bunge, the American agribusiness corporation, of corruption. Bunge is most likely the company that reported the corrupt tax authority officials to the American embassy. A few days ago Magyar Nemzet accused Bunge of corruption in Argentina, and today András Tállai, undersecretary in the Ministry of National Economy, went further. According to him, “it is a very interesting situation that in the final analysis it is possible, nay it is certain, that the informer itself is involved with the fraud.” That is, Bunge is being accused of tax fraud. And that’s not all. Magyar Hírlap learned that Carol Browner, Barack Obama’s adviser on environmental matters, recently became a member of Bunge’s board of directors. And, the paper added, Browner was also a member of the Clinton administration. The headline reads: “The threads may lead all the way to Barack Obama.” Wow!  Magyar Hírlap is a big game hunter.

Bunge says it is not under VAT fraud investigation Source: www.bbj.hu

Bunge says it is not under VAT fraud investigation
Source: http://www.bbj.hu

János Lázár also made it clear how he feels about the United States’ role in shining a light on corruption in the Hungarian tax authority. When an MSZP member of parliament inquired about Ildikó Vida, the head of the office, Lázár retorted: “How do you know that she is involved? For an answer it would be enough to bring the flag of the United States and put it between the European and the Hungarian flags because then we would understand that behind the MSZP caucus there is the Budapest chargé of the United States.” He also suggested to Bernadett Szél (LMP) that she go to the United States embassy and ask them why they intimate that part of Hungarian officialdom is corrupt.

Meanwhile the right and far-right media are full of attacks on the stupid, ignorant and boorish Americans and their representative, M. André Goodfriend, as opposed to the Russians of Tolstoy, Chekhov, and Dostoevsky. Since we all know that a single word from Viktor Orbán would be enough to silence these hacks, we can safely assume that the rants from the staff of Magyar Nemzet and Magyar Hírlap are not against the wishes of the Orbán government.

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The corrupt Hungarian tax authority

Since the fate of the internet tax is still pending, let’s turn to the systemic corruption that has a debilitating effect on the entire Hungarian economy. The existence of corruption on all levels of the administration didn’t escape the attention of the demonstrators who were brought to the street by their concern over the government’s plans to restrict access to the internet through onerous taxation. They protested against the “mafia government” and chanted slogans about thieves who become rich off their own hard-earned money. They deplored the activities of the corrupt officials of NAV, the Hungarian equivalent of the American IRS. NAV spends untold millions if not billions trying to track down small fry while letting the big fish off the hook. Or worse, it is alleged, high officials of NAV receive kickbacks from corrupt businessmen for services rendered. And what is the most disturbing about this whole story is that the highest officeholders of the government party, Fidesz, have known about these fraudulent activities–and have benefited from them–for years.

How can I say with such confidence that members of the government and the party have been aware of these illegal activities for a long time? Almost a year ago András Horváth, an employee of NAV, spilled the beans. He collected evidence that proved that certain crooked businessmen were receiving preferential treatment by NAV. In the wake of Horváth’s revelations nothing happened. After a quick internal investigation, NAV declared that Horváth’s accusations were baseless. And, for good measure, they fired Horváth. Soon enough the police arrived at Horváth’s apartment and took away the evidence.

The fraud that high NAV officials “overlooked” involved all sorts of financial shenanigans that resulted in Hungarian businessmen not paying the admittedly very high 27% value added tax on certain agricultural products like sugar and cooking oil. With that move, and with the active assistance of the Hungarian tax office, these crooked Hungarian businessmen gained a considerable advantage over their main competitor, the American firm Bunge. These Hungarian businessmen were the ones András Horváth was talking about and who are now, after the American revelations, suddenly  in custody. Without the American announcement to ban certain individuals from entering the U.S. these people would still be writing out their fraudulent bills of sale. The thoroughly corrupt Orbán government had no intention of doing anything about the crooked businessmen or, as it turned out, the equally corrupt tax officials. The American ban is invoked only in countries where there is no hope for justice because the government itself is corrupt. Usually third-world countries.

With the American revelations Horváth’s accusations were corroborated. Horváth and Goodfriend obviously were talking about the same cast of characters. But the Americans added another crucial piece of information that Horváth couldn’t have known about: high NAV officials offered their services to the CEO of Bunge for 2 billion Hungarian forints, to be paid to a foundation with ties to Fidesz. In return, they offered a lowered VAT on foodstuffs, a demand of long-standing by the honest producers of sugar and cooking oil. For this sum they also offered to go after Bunge’s competition.

The government’s reaction to all these revelations is fascinating. First, government officials–most notably Mihály Varga, minister of national economy who is in charge of NAV–focused on the corrupt businessmen, ignoring the NAV officials. Why is the Hungarian government accused of doing nothing? After all, three or four people are already in custody. When asked about Ildikó Vida, the corrupt head of NAV who was seen at Vienna’s airport leaving for an unknown destination, he played the innocent. Vida is taking her vacation, to which she is entitled. To the question whether Ildikó Vida is banned from the United States as rumored, Varga announced with a straight face and a hefty dose of the exculpatory conditional, that if she were, surely she would have reported this fact to him as she is supposed to.

Who is this Ildikó Vida? She, like almost all Fidesz bigwigs, lived in the countryside before she entered law school in Budapest. (One reason for the heavy concentration of non-Budapesters among the original Fidesz leaders is that they lived in university dormitories.) Vida was also a member of the by now famous Bibó College which Orbán; Lajos Simicska, former treasurer of Fidesz and now a wealthy businessman; László Kövér, president of the parliament; and József Szájer, a member of the European parliament, attended.

Ildikó Vida at her desk

Ildikó Vida at her desk

As one Hungarian media outlet complained, we know very little about the president of NAV. She does not have a large Internet presence and NAV’s webpage has no biographies of the organization’s top leaders. However, she seems to be a very important person in Orbán’s mafia state.

About a month ago a long study by atlatszo.hu, one of those NGOs who receive money from the Norwegian Civil Fund and whom the government is trying to defund, identified the key persons who “captured the Hungarian state.” Ildikó Vida is among them. She must know about the siphoning of public money into Fidesz coffers and most likely into Fidesz politicians’ own pockets as well. Lajos Simicska, whom Orbán called a “financial genius” but who elsewhere would be considered a criminal, was put in charge of the tax office in 1998 as soon as Orbán won the elections. His job was to get rid of all the incriminating evidence about the illegal financial activities of Fidesz-owned businesses that folded and were subsequently “sold” to people unreachable by Hungarian authorities so their unpaid taxes couldn’t be collected. Ildikó Vida was one of Simicska’s deputies and, once Simicska left a year later, Vida became the head of the almighty APEH, the predecessor to NAV. Most people assume that APEH under Vida was no better than NAV is today. I assume that then, just as now, the tax office serves three purposes. One is to assist certain businessmen close to Fidesz to gain an advantage over their competitors by closing their eyes to their fraudulent activities. The second function is to extract money from business leaders, part of which goes to party coffers through an intermediary, like a foundation. And third, the tax office frightens certain persons and businesses Fidesz does not deem friendly to the party and the government into submission. In brief, the picture is grim–and I suspect we don’t know the half of it.

What do sugar distribution and drag racing have in common? A lot

Perhaps there is hope yet for investigative journalism in Hungary. When in the mid-1990s I first encountered an article that was supposed to uncover corruption in the police force I was appalled. The author didn’t seem to be aware of the most basic rules of what we used to call expository writing. Moreover, she was so sloppy that she didn’t even bother to learn the simplest facts of the case. I decided to write to her, going through her article practically sentence by sentence. As if she had been a student of mine who wrote a very, very bad essay on some historical topic. After I sent off the e-mail I was sure that I had made an enemy for life. But no, I received a very cordial answer in which she thanked me for my thorough critique of her work. We even stayed in touch for a while: I continued to criticize, and she continued to improve.

In general, however, Hungarian investigative journalism didn’t improve. Investigative articles and even books on the mostly dirty business affairs of Hungarian politicians were still sketchy and largely incomprehensible. One got the impression that the authors had only a vague sense of the complicated legal and business connections they were writing about. Mind you, they were trying to untangle business activities that were intentionally designed to be inscrutable.

So I was happy to read an article in Index by Miklós Jenei the other day that seemed to have uncovered more about a company’s questionable business practices in a couple of weeks than the National Tax and Customs Administration of Hungary (NAV) managed to do in years with its 23,000 employees.

Jenei decided to focus on sugar because András Horváth, the whistleblower at the Hungarian tax authority, mentioned sugar as one of the favorite commodities of the VAT scammers who make millions if not billions by reclaiming their non-existent value added taxes. He visited quite a few large supermarkets and compared prices. He found a Slovak-Hungarian brand called Sovereign which cost 20-30 ft less than the others. This particular brand was produced by Sovereign Slovakia s.r.o. and was sold at Tesco, Lidl, and some other outlets. The price of Sovereign sugar is 229 at Tesco and 200 ft at Lidl.

According to their website, the company was established in 2009 and the owner is Majorbiz Inc. (Seychelle Islands). The CEO is Ilona Ollé Agh. The reporter is fairly certain that the sugar actually comes from Hungary but that for one reason or other it is more profitable for the owners of Sovereign to transport the sugar to Okoč/Ekecs in Slovakia, a village which is almost entirely inhabited by Hungarians, for packaging.

Jenei managed to discover the wholesale price of sugar per ton by posing as a CEO of a sugar distributor. As a result, he came to the conclusion that no one can buy sugar from the factory for less than 185 forints per kilogram. The supermarkets refused to reveal the price they pay for Sovereign sugar, but our investigator figures that Tesco most likely pays 180 and Lidl 173 forints per kilogram. So, something doesn’t add up.

It turns out that over the last few years there were several companies with the name Sovereign. Several of them dealt with sugar packaging. All of them also had business interests in the sale of cars. Almost all of them had their share of trouble with the Hungarian tax authorities. And all of them shared the same address on Farkastorki utca in District III in Budapest. It is a small apartment on the ground floor. These various Sovereign businesses came and went after amassing millions in unpaid taxes. The authorities would regularly shutter the delinquent business, but within a few months a new business with a slightly different name would spring up. The CEOs also appeared and disappeared. One such CEO was Szilvia Marisz who claims that she is a bookkeeper; when Index‘s reporter finally got hold of her he could hear a baby crying in the background. Her successor was a 63-year-old fellow who had interests in thirteen companies of different sorts. Most of them are no longer in existence.

Lately a new company was registered at the same apartment on Farkastorki utca: Tull Trade Kereskedelmi és Szolgáltató Kft. Its owner is Sándor Esztocsák, who had earlier connections with Sovereign. Tull’s business was fabulously profitable. In 2010 it grossed 551 million forints, which is not bad for a company run by one man, Esztocsák, who obviously came cheap: he had the modest salary of 282,000 per year.

What is the connection between Tull and the packaging company in Slovakia? The link seems to be Jenő Rujp, head of the Sovereign Racing Team Kft, a company that also has its headquarters in the ground-floor apartment on Farkastorki utca. The company is involved with drag racing and maintains a sailing team as well as a band. The racers were badly behind with their taxes and therefore their business permit was cancelled. But no problem. They changed the name to Sovereign Sugar Hungary and Rujp ostensibly left the company. This last company with a new CEO is the distributor of Sovereign Sugar.

Sovereign at a drag racing meet

Sovereign at a drag racing meet

Quite a saga! Naturally, Index tried to avoid drawing any conclusions from the findings of Miklós Jenei, but it seems to me that the “sugar business” serves primarily as a vehicle for making enough money–thanks to major funding from the unwitting Hungarian taxpayers–to keep up the expensive habits of some of the characters in the story.

Tax fraud scandal in Hungary

On November 8 a surveyor of taxes, András Horváth, turned to the prosecutor’s office to report a breach of fiduciary duties committed by the top leaders of NAV (Nemzeti Adó- és Vámhivatal/National Office of Taxation and Customs). During his press conference he stood between representatives of two civic groups, Levegő Munkacsoport, an environmental organization, and Vállakozók Érdekvédelmi Szövetsége (VÉSZ), basically a lobby group of small entrepreneurs.

Horváth claimed that large-scale cheating goes on with fictitious VAT reimbursement payments, especially in the case of large multinational and domestic companies. Since Horváth was mostly involved with agricultural products and foodstuffs in general, I assume that the companies he was talking about are mostly large food chains. He claimed that the loss incurred in just this sector of the Hungarian economy amounts to about 1.7 trillion forints per year, more than 10% of the country’s entire yearly budget of 15 trillion forints.

The interest was great at András Horváth initial press conference / Photo Ákos Stiller

The interest was great at András Horváth’s initial press conference
Photo Ákos Stiller

Horváth seems to be a naive soul because before his revelation he turned in his resignation and was expecting to sever relations with NAV only in two months’ time. I guess you will not be surprised to hear that Horváth was immediately dismissed from NAV and that currently NAV is in the process of pressing charges against him.

When Index asked for details from NAV, they were told that tax fraud is usually committed through complicated layers of phony companies and that therefore it is often impossible to find the culprits despite the concerted efforts of NAV’s employees. The spokesman for NAV emphasized that the more than one thousand large multinational and domestic companies actually provide 42% of all tax revenues. These companies are thoroughly investigated.

Yet NAV, either on its own or because of prodding from above, immediately announced an internal investigation. Keep in mind that NAV has 23,000 employees, and yet over the weekend in only two days’ time (November 9-10) the “investigation” turned up nothing. I have the feeling that the internal probe couldn’t have been too thorough.

On Tuesday, November 12, disappointed by the internal investigation of NAV, Horváth put all his trust in the government, emphasizing that he has no political motivations. He just wants the truth to surface. In fact, he was an early Fidesz party member and has old friends in the party from those days. He indicated that he knows two of the “highest dignitaries of the land.” I think he was talking about János Áder and László Kövér. He also said that he wrote two letters to leading politicians in the Prime Minister’s Office and he definitely knows that one reached the person for whom it was intended. I assume again that this was János Lázár. Exactly when Horváth wrote to the person in the Prime Minister’s Office is not clear, but we definitely know that he wrote a long letter to Antal Rogán, head of the Fidesz parliamentary caucus, back in November 2011.

Rogán didn’t seem to remember any such letter. His only recollection was that somebody stopped him in the corridor of the parliament and exchanged a few words with him. But then Horváth released his long, detailed letter which Átlátszó.hu, an investigative online paper, published in its entirety. At that point Rogán’s memory was jiggled, but he still claimed that the letter contained only generalities. It is true that Horváth didn’t mention any names, but he indicated that some of the high officials of NAV were getting paid off for their “leniency” and that some of them had become quite rich in the process.

The way the fraud was committed does look complicated, but in essence it entails a phantom supplier who gets reimbursed for VAT, which is the highest in the European Union. Thus a product for which the Hungarian company paid 100 forints to, let’s say, a Slovak company cost the Hungarian company only about 80 forints and thus its profit margin is about 20-25% higher than it would have been without the assistance of this phantom company. There is a drawing of the scheme in Index.

Fidesz naturally suspects political motives behind Horváth’s revelations. Mihály Varga, minister of economics, warned Horváth that he as a civil servant is not supposed to engage in political activities. Horváth insists that politics has nothing to do with it and that the law is on his side. After all, he says, the law is supposed to shield those who unveil corruption and fraud. But Horváth is in trouble because so far his case has not been taken up by the prosecutor’s office. They want additional information, which sounds like a diversionary tactic. Knowing the political orientation of the prosecutor’s office, I will be most surprised if Horváth’s case is ever taken up.

Meanwhile, of course, the case became thoroughly politicized. It couldn’t have been otherwise. András Schiffer’s LMP immediately moved into action. Next Friday the party will stage a demonstration for “the purity of the tax office and for the upstanding taxpayers.” At the same time, LMP and József Ángyán, formerly Fidesz but now an independent member of parliament, initiated the process to set up a parliamentary committee to investigate the NAV case.

The establishment of such a committee must be supported by 77 members of parliament. As it turned out, in addition to the seven-member LMP only a few independents, a handful of Együtt-PM, and Jobbik members signed the petition.  And that’s not enough. Without MSZP there can be no committee investigation of the case. DK members also refused to sign. The reason for both MSZP and DK holding back was the signatures of Jobbik members. They refuse to join any parliamentary action in which Jobbik is involved.

It is true that, even if the necessary number of signatures had been obtained, the investigative commission most likely wouldn’t have seen the light of day. Fidesz would have voted it down flat. But at least the charge couldn’t have been leveled against MSZP that they were reluctant to sign because they didn’t want their own part in the tax evasion scheme to be unearthed. Indeed, the reason for their refusal to sign doesn’t sound quite genuine, as some Együtt-PM members point out, because in the last three years MSZP members signed several documents on which one could find Jobbik names as well. Attila Mesterházy’s explanation for MSZP’s action (or lack of action) in this case is that the party decided to boycott Jobbik in parliament and elsewhere only recently.

I’m not sure whether refusing to collaborate with Jobbik in every instance is necessarily a smart political tactic. My feeling is that Mesterházy and others can explain their reasons until they are blue in the face, yet people who are inclined to equate the two parties when it comes to corruption will never believe them. And these are exactly the people whom Gordon Bajnai and Attila Mesterházy want to convince to vote for them. Of course, those who argue that nothing would have come of the investigative committee are right, but at least MSZP could have avoided another reason for labeling them a corrupt party, just as corrupt as the “mafia government” of Fidesz.

Hungary’s ruling party and its concept of democracy

A fairly lengthy psychological portrait of Viktor Orbán has been circulating online lately. It is not new. It was put together in 2010, and my hunch is that it’s arousing interest now because after almost three years of the Orbán regime people are becoming curious about the psychological makeup of the man. After all, it is becoming clearer by the day that there is something not quite right with the original founders of Fidesz. Perhaps they are not what people thought they were. Attila Ara-Kovács’s short essay on the young Orbán stirred things up, and I hope that others who know a lot about this period will probe further into the beginnings of Fidesz and the people who were responsible for its founding and nurturing.

The profile is based on Freudian psychoanalysis. To my mind its real value comes not so much from its theoretical hypotheses as from its account, based on contemporary sources and later recollections, of how  self-government in the college dormitory where Fidesz was born functioned. If we can believe László Kéri, the political scientist who was one of their original supporters, four people ran the show in the dormitory: László Kövér, Lajos Simicska, Viktor Orbán, and Tamás Varga. (Varga subsequently spent more than three years in jail for tax fraud.) Orbán, Simicska, and Varga all came from the Székesfehérvár gymnasium. The “gang of four” were the ones who told all the others how they were supposed to behave and what they were supposed to think. Kéri thought that they were an aggressive, exclusive group who ignored the opinions of others and constantly sought out enemies. He compared them to the “Lenin boys” of Béla Kun who traveled the country murdering people. Kéri apparently warned that when Orbán runs this country he “will hang [István] Stumpf and me first because we know who you were once-upon-a-time.” Lately there has been a concerted effort to discredit Stumpf who as a judge on the constitutional court has exhibited too much independence and tends to side with those who rule against the government.

Kéri may have been that perceptive in the late 1980s, but I must say that he showed less acumen when before the 2010 elections he was actually looking forward to a new Orbán government, preferably with a two-thirds majority, because Viktor Orbán in this case will accomplish great things. When the reporter who conducted the interview with Kéri reminded him that Orbán’s first government was not very promising, he optimistically remarked that Orbán is eight years older and therefore wiser. He will be a great prime minister.

Soon enough Kéri had to admit that he was dead wrong. Reflecting on the lost election of 2002, Orbán told József Debreczeni, his biographer, that the only reason he failed was that he was not tough enough.

Critics of the current government tend to gloss over the first Orbán government even though almost all of the present tendencies have their antecedents in Orbán’s first four years in power: extreme nationalism, unification of the nation across borders, accommodating MIÉP (an extremist anti-Semitic party), interference with the media, government propaganda, strained relations with the neighbors. And one could go on and on. General dissatisfaction with, and even fear of, the government led to a record turnout in the 2002 election. And yet eight years later the same crew was reelected with a large majority.

Today, conflicts with the outside world are considerably more numerous than they were between 1998 and 2002 when Hungary wasn’t part of the European Union. But even then Viktor Orbán wasn’t exactly the favorite of foreign political leaders. He had especially strained relations with the United States. George W. Bush refused to meet him, most likely because although he was present in the chamber he acted as if he didn’t hear István Csurka’s (MIÉP) comment after 9/11 that the United States only got what it deserved. Relations with Romania were bad and Orbán managed to tear into Austria as well. Because of his attack on the Beneš doctrine he was not exactly beloved in the Czech Republic and Slovakia. He looked upon Russia as an arch enemy. By the end he had only two friends left: Silvio Berlusconi and the Croatian Franjo Tuđman, whose funeral was boycotted by foreign politicians. But, fear not, Viktor Orbán was there.

A few days ago László Kéri wrote a fairly lengthy critique of the second Orbán government. The essay focuses on the first sentence of the government program allegedly written by Viktor Orbán: “The victor has a job to do, not to insist on being right…. For me this is the motto of modern governance.” And yet, says Kéri, Orbán has been doing nothing else in the last three years but trying to convince everybody that he is right. Always right. While none of the tasks he set forth has been accomplished. He destroyed practically overnight the old structures but was unable to set up functioning new ones.

The politicians of Fidesz don't believe in them

The politicians of Fidesz don’t believe in them.

These criticisms point out administrative failings. But George Kopits, former chairman of Hungary’s fiscal council between 2009 and 2011, is harder hitting. In The Wall Street Journal he bluntly calls Viktor Orbán’s newly constructed regime “a constitutional mob rule” because with the two-thirds majority Viktor Orbán can do whatever he wants. May I remind everybody that George Kopits is an economist with conservative political views, not one of those liberals whom the government accuses of treason against the nation when they criticize his government. Kopits also thinks that “today’s Hungary is eerily reminiscent of the communist regime of János Kádár, under which all public institutions were potemkin bodies that dared not challenge the hegemony of the Politburo.”

Is Kopits exaggerating? Surely not. Just today a lengthy interview with László Kövér appeared in Heti Válasz. Only a summary is available online, but the quotations are telling. “In a democracy there is only one constituent assembly, the people, which at election time receives a mandate through its representatives who via fixed rules and regulations exercise their rights.” The scrutiny of the constitution by the constitutional court “would mean the end of the rule of law and democracy.” He continues: “Who is a democrat? I, who think that the country’s future depends on the free decision of the people which can be corrected in four years, or those who in their distrust of the people expect a small body to read what kinds of messages the God of the Constitution (alkotmányosságisten) sends to earthlings based on the constellations, viscera, and bird bones?” In brief, the constitutional court is not only superfluous but is an outright undemocratic institution. So much for any understanding of democracy by the present rulers of Hungary. If one takes a look at the old 1949 Stalinist constitution, one will find very similar sentiments. Obviously Kövér and company feel quite comfortable with the constitutional arrangement of that dictatorial regime.