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Budapest public transport companies fined for reneging on contract

Hungaryʼs Public Procurement Arbitration Board (KDB) has fined Budapest public transport companies BKV and BKK a combined HUF 115 million for declaring unsuccessful a four-year tender for the use of advertising space, state news wire MTI reports.

BKK and BKV had called the tender for a four-year contract with an estimated net value of HUF 5.7 billion in 2016. However, after the new municipal council took office following local elections in the autumn, a decision was taken to prohibit local council-owned companies from signing contracts on advertising space that last longer than a year.

To comply with the new stipulation, the original tender was declared without a result.

The KDB resolution may be appealed.

In a post on Facebook this week, Budapest mayor Gergely Karácsony said the scale of the penalty levied on BKV and BKK was "striking and unusual", adding that the KDB resolution would be appealed.