Are you sure?

MNB management contests supervisory board's criticism

The supervisory board of the National Bank of Hungary (MNB) did not take into account all the facts and data available at the MNB in some of its investigations conducted since its first session in December 2010 and had not requested the opinion of the MNB in time regarding the findings of the supervisory board, the MNB said in a statement late on Friday.

The MNB released the statement in response to criticism by chairman of the supervisory board Zsigmond Járai published earlier on Friday. Járai said the supervisory board had found the central bank's salary policy is not in line with international practices. The supervisory board also criticised a public procurement for communication agent services as well as a contract with a communication advisor.

The supervisory board found salaries for MNB employees, especially directors, to be unrealistically high, Járai said. Directors are paid on average HUF 22 million a year, which is well over the compensation for directors at commercial banks, he explained.

MNB noted that its personnel costs declined in 13% between 2008, when the current governor Andras Simor took office from Mr Jarai, and 2010 and spending on communication services fell to HUF 63m last year from over HUF 100m in 2006. The MNB takes about HUF 4 billion-6 billion worth public procurements a year, and it had won the one process which was contested between 2008 and 2010, the central bank statement said.