The concession contract for a planned €1.5 billion resort and casino on the shore of Hungary's Lake Velence is likely to be cancelled, daily Magyar Nemzet reported.
A government commissioner told the paper after a meeting at the Government Audit Office on Thursday that representatives of the affected ministries and the audit office were in agreement that the contract should be cancelled.
Israeli businessman Joav Blum and the company KC Bidding have failed to meet the conditions included in the concession contract, said Gyula Budai. As a result, the Hungarian state can rightfully demand a HUF 900 million indemnity, he added.
Hungary's new government withdrew the project's priority status in September, Econews reported earlier. Budai, who was assigned to investigate the sale of the land for the casino, said the previous government gave the investment priority status illegally because a concession contract had not been signed, as required by law. (MTI – Econews)