Microsoft Corp. probes contracts of local unit


Microsoft Corporation has conducted an in-depth investigation at its local subsidiary Microsoft Magyarorsz谩g Kft. While the results have not been made public, several connected details seem to point towards suspected corruption as the reason for the probe, online news portal reports.

Microsoft headquarters in Redmond, Washington, delegated a group specialized in investigations to verify the contracts between Microsoft Magyarorsz谩g Kft. and several institutions of Hungarian state administration. The internal investigation, conducted in collaboration with a Hungarian law firm, verified contracts signed over the course of several years, worth billions of Hungarian forints, reports.

In response to inquiries by, Microsoft Magyarorsz谩g did not deny the internal investigations had taken place, but did not offer any further information. 

Microsoft Magyarorsz谩g does not directly sell Microsoft products, but acts through intermediaries called Large Account Resellers (LARs), which also handle sales to government institutions. Until recently, Microsoft collaborated with four LARs, each with annual turnover of HUF 4-13 billion. Microsoft Magyarorsz谩g also had a manager responsible for government relations, Viktor Sagyib贸, until last year.

Sagyib贸 left Microsoft Magyarorsz谩g in early 2016; last month he was appointed a commissioner by J谩nos L谩z谩r, minister in charge of the Prime Minister始s Office. Sagyib贸 now has wide responsibilities, controlling all local and EU projects of the PM始s Office.

Prior to that, Sagyib贸 worked for just two weeks as CEO of 4iG Nyrt., the parent company of one of the Microsoft LARs, Humansoft Kft. Sagyib贸 quit the CEO position for unspecified private reasons. According to, however, Microsoft may have put pressure on 4iG to part ways with Sagyib贸.

Less than a week after the appointment of Sagyib贸 to his government position, Microsoft Magyarorsz谩g unexpectedly terminated the contracts with three of its four LARs. This means that as of now, Microsoft will not sell software, nor provide support for software, sold by Humansoft Kft., RacioNet Zrt. or Euro One Zrt., reports.

In response to inquiries concerning a possible connection between the appointment of Sagyib贸 in his government post and the cancelling of the contracts with the three LARs, Microsoft would only say that the company is looking for a "new direction" in its relationships with local partners.

While its reporting of the Microsoft investigation makes no direct reference to corruption in Hungary, does point to another case in Romania involving Microsoft. Last year several former Romanian ministers were given prison sentences and had assets totaling EUR 17 million frozen for receiving significant bribes in exchange for software contracts 30-40% more expensive than the usual market price, and computer purchases overpriced by 50%.


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