Közgép goes to court to fight its ban from bidding

Issues

Construction firm Közgép Zrt. will appear before a court in October to dispute a decision by the Hungarian Public Procurement Board that prevents the company from participating in public tenders for the next three years, online daily nol.hu reported today.

The Budapest Administrative and the Labor Court must decide whether the Procurement Board acted fairly in the case of construction firm Közgép, which is partly owned by media oligarch Lajos Simicska, when it found that the company had submitted what the board said is “false data” in a bid for development of the Gönyű port on the Danube.

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 (pictured) had a very public falling out with his long-time ally, Prime Minister Viktor Orbán, earlier this year.

The legal proceedings, which began more expediently than usual, come with high stakes, the daily noted. If Közgép loses the case, they will be barred from participating in all government contracts for the next three years. If they win, not only can the firm take part in all European Union funding tenders, it could also win back the exclusive right to the first contract.

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