Csaba Hende: No HDF Development Took Place Until Summer 2010

“At the moment we are analyzing the audit documents – several thousands of pages – which have been collected in recent months with the help of external subject matter experts; the material is being reviewed by a team of lawyers to see which cases of maladministration require evaluation in terms of criminal law and should be reported to the authorities" – Defence Minister Csaba Hende said in answering a question about the number of preposterous or suspicious transactions that the current MoD leadership has brought to light.

Csaba Hende pointed out that we are talking about a very complicated situation because in the meantime, the Ministry must carry on working to implement its vision for the future. "Our main task is to establish and build the Hungarian Defence Forces that are capable of protecting the homeland. But besides that, we cannot ignore criminal acts that fundamentally influence the integrity of the military and the officer corps, and at the same time, severely constrain our financial possibilities" – underlined the Minister. He cited the example of Zrínyi Nonprofit Co., the company responsible for the MoD’s image in the media. Under the new leadership of the firm, this year’s budget is only two-thirds of the previous year’s, while the company has more assignments in the current year.

As an example of disadvantageous contracts from the previous term, Csaba Hende mentioned a HUF 30 million IT contract with a server provider that they have managed to replace with a HUF 1 million one (of the same quality of service) after the change of government. “We are also talking about acts of misappropriation of this scale. Of course we are unlikely to track down those who returned some of this 30-million sum in a box of whisky or an envelope, but that’s why we have the criminal act of misappropriation. The fact that someone was not simply stupid, but received a little money in return for the disadvantageous contract, does not need to be proven. The legal category of misappropriation perfectly applies to those obvious cases that do not directly demonstrate bribery" – argued the Defence Minister.

He also mentioned the case of the bathroom showroom that had been operated at the HDF base in Kosovo; in total, it had cost the MoD HUF 94 million, until they had it closed down last summer after the change of government. The total sales had amounted to a mere HUF 4 million. “The man running that business from Budapest had received HUF 750,000 per month for three years – money for nothing" – added Csaba Hende, noting that "…all these transactions and individuals are linked to the internal circles of the MSZP (Hungarian Socialist Party), for both Ferenc Juhász and Imre Szekeres were leading politicians of the MSZP during the period they were defence ministers. These transactions presupposed a leadership that not only tolerated but specifically authorized and encouraged their taking place."

Csaba Hende underlined that Hungary has committed itself within NATO to the development of the Hungarian Defence Forces. “Unfortunately we have left behind a real eight-year low in this respect as well. During that period we did not deliver on any of our commitments, actually we had been lying from the beginning" – he said in the interview.

The Minister added that in 2006, the previous government had adopted a ten-year development plan for the HDF, with the “result" that by 2010 no progress was made and no steps were taken. “Last year I had to announce at the NATO HQ in Brussels – it was quite a big shame – that up to that point, Hungary had been lying, in the morning, at night, and in the evening, so to say; but now we’ve drawn a line and started transforming the system. This process is currently in progress, we already know the main directions; we have drawn up a plan for armed defence that will also serve as a basis for our ideas concerning the development of the armed forces. Before the end of the year, we will be in a position to put our requirements on the table including the necessary procurements and development projects" – argued the Defence Minister.

According to Csaba Hende, however, the difficult economic situation of the country – which the Minister puts down to the incredible national debt – hinders large-scale developments, so the HDF leadership is now focusing on planning as well as military training and education. “It does not come cheap either, but will obviously cost far less than the new weapon systems we definitely need to procure" – said the Minister.
To illustrate the need for procurement, Dr. Csaba Hende noted that the Soviet-made items of military equipment of the 1970-80s would have become obsolete and phased out by 2020, regardless of whether the HDF units deploy with them in Afghanistan or use them at their home stations in training to defend Hungary.