EU fraud investigation opened into Hungarian nursery

The European Union’s anti-fraud office opened an investigation into a Hungarian nursery that cost almost €2m – but only has enough space for 12 places. 

A one-story building, a muddy courtyard and a climbing frame is what €1.8 million in EU funds bought in Kazár, Nógrád county. 

The new nursery opened in September, but its pitifully low number of 12 available places means that each child’s slot will cost the EU around €150,000, more than the price of a large family house in the local area. 

Hungarian MP Ákos Hadházy discovered the alleged fraud earlier this year. 

“Obviously, this is theft,” he said. “It’s easy to find the link between the construction company and the other tenderers. Of course it was not a real public procurement, it was manipulated procurement.” 

Last week, the EU’s anti-fraud office (OLAF) opened an investigation into the overpriced nursery. 

OLAF is responsible for investigating fraud against the EU’s budget, corruption, and serious misconduct within European institutions. It also develops anti-fraud policy for the European Commission. 

Although Kazár only has 1,600 inhabitants, the Hungarian Integrity Authority also reportedly has a separate investigation in the village that is currently ongoing. 

A friend of the village mayor allegedly received around €1.2 million in EU funds to create fish ponds, which he failed to account for properly. 

Speaking to Euronews, the town’s mayor said an investigation into possible overpricing had already been launched and that a statement would only be issued once it concluded. 

Hungary consistently ranks among the most corrupt European countries, according to various scoreboards. 

A corruption perception index by Transparency International ranked Hungary as the most corrupt country in the EU. The group slammed Hungary for “over a decade of systemic breach of the rule of law,” which has allowed corruption to “thrive unsanctioned”.