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.
Hungary CPI Drop Acknowledged at IMF/World Bank Spring Meeti...
Hungary to Address Future of Cohesion Policy During EU Presi...
2/3 of Hungarians Have Basic Expectation of Home Office
Time Out Market to Open in Budapest Next Year
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
.jpg)
