Former MVM executive questioned by police on suspicion of malpractice


István Kocsis, former head of the Hungarian Electricity Works (MVM), was questioned by police on Tuesday on suspicion of misappropriation of company funds during his tenure at MVM between 2005 and 2008.

Kocsis, who is currently chief of Budapest transport company BKV, said after leaving the police station that he would submit a complaint against the accusations.

He said the national bureau of investigation's economic protection department had interviewed him because MVM's new management had submitted a report about suspected negligence causing large losses. He said he had told police that he had not committed any crime and that the investigation would prove this.

During the period under review, the MVM's auditor, board of directors, supervisory board, general assembly and owners had never raised any complaints about projects' efficiency or costs, Kocsis said.

He said the general assembly had first approved in 2005 and then annually renewed the "strategy aiming to increase the MVM group's market value to HUF 800-1,000 billion" between 2006 and 2008.

Kocsis added that the financial crisis in the second half of 2008 had been impossible to foresee at that time, and it was also impossible to tell that the owners would unexpectedly change their strategy for regional expansion and instead opt to slice up MVM and quickly sell it.

Kocsis said he had not expected, either, to be dismissed from his post in a move he described as "political revenge.

"If ongoing projects at the time had been completed, MVM would not have suffered such large losses later, he added. The new MVM management for instance rejected a €600 million development project in the Western Balkans and Romania, yet it is currently included in Hungary's national energy strategy, Kocsis said.

He added that he would fully cooperate with the investigators to establish who was really responsible for the losses.


Households Continue to Make Net Withdrawals in Oct Banking

Households Continue to Make Net Withdrawals in Oct

Gov't Keeps Rate on General-purpose Student Loans at 7.99% Government

Gov't Keeps Rate on General-purpose Student Loans at 7.99%

Hungary Home Sales Climb 10% in November Residential

Hungary Home Sales Climb 10% in November

4-legged Guests Welcome at Hungary's 1st Hampton by Hilton Hotels

4-legged Guests Welcome at Hungary's 1st Hampton by Hilton


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.