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The former governor, a lawyer and a third person have been taken into custody in the investigation into earlier activities of the National Bank of Hungary (MNB).
The Central Chief Prosecution Office of Investigation (KNYF) said suspects were questioned Wednesday after prosecutors and police seized evidence in coordinated raids.
According to the KNYF, the investigation concerns an alleged attempt to transfer control of assets belonging to the central bank’s Pallas Athéné Domus Meriti Foundation (PADME) through a sham securities lending agreement.
Prosecutors said the arrangement would have placed the assets under the control of a group over whom György Matolcsy would retain influence after his term as central bank governor ended.
The agreement was signed one day before his term expired, according to the KNYF. Its alleged purpose was to enable Matolcsy and his son to use the assets for investments benefiting themselves.
The resulting financial loss cannot yet be calculated precisely, but prosecutors said it was “well over” the HUF 500 mln threshold for classification as a “particularly significant financial loss.”
Alongside the former governor, authorities detained a representative of the private equity fund involved in the alleged sham agreement and the lawyer involved in the securities transaction.
The suspects questioned so far, including György Matolcsy, have declined to give statements, the KNYF said.
As the BBJ reported earlier, György Matolcsy was taken into custody Wednesday morning, with his lawyer saying he was suspected of economic fraud causing substantial financial loss and using a forged private document.
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