Hungarian court upholds exclusion of Közgép from port tender

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The Budapest Municipal Court has overruled a first-instance ruling rejecting a decision by the Public Procurement Authority (PPA) preventing Közgép from submitting a tender for the development of Gönyű port, after the company provided false data, according to the PPA, Hungarian news agency MTI reported yesterday. 

The PPA upheld a decision reached by the regional state waterworks directorate in July of last year to bar Közgép, a company owned in part by media mogul Lajos Simicska, from submitting a tender to develop the port located on the Danube River. The PPA also barred Közgép from participating in public tenders for three years.

The court confirmed a statement by PPA head Csaba Balázs Rigó that the first-instance ruling violated the law and was substantively unfounded, the authority said. Until a legally binding decision is reached on the matter, the company will not be entitled to participate in public tenders, according to the PPA.

Közgép had been one of the most successful firms when it came to winning government tenders, but the company has been less successful since Simicska had a very public falling out with his long-time ally, Prime Minister Viktor Orbán, last year.

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