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Ministry terminates Synergon contract

Hungarian IT company Synergon on Thursday said a contract worth hundreds of millions of forints that it signed with the Ministry of Environment and Water in 2009 had been terminated by the ministry's successor.

The contract was terminated "unilaterally and without explanation" by the Ministry of Rural Development, Synergon said. The company said it challenges the foundation of the intention of the withdrawal and the lawfulness of the termination.

The remaining value of the terminated contract to deliver a Microsoft public administration license package for 2009-2011 is HUF 276 million, the company said. Synergon will write down as depreciation the HUF 226 million book cost of the Microsoft licenses used by the ministry for 2011 in Q1 2011, it added.