Hungary Foreign Ministry Probes $964 Million COVID-19 Ventilator Deal Fraud
Investigation into Suspected Fraud in Pandemic-Era Ventilator Purchases
Background of the Ventilator Deal
BUDAPEST, Aug 25 (Reuters) - Hungary's Foreign Ministry has filed a report with prosecutors on suspected fraud and other crimes involving the 2020 purchase of ventilators during the COVID-19 pandemic under the previous government, Foreign Minister Anita Orban said on Tuesday.
Details of the Purchase
• The report on the purchase of nearly 17,000 ventilators worth a combined 300 billion forints ($963.82 million) says the ministry bought thousands of surplus ventilators that could not be used realistically at inflated prices, Orban told reporters.
Response from Former Government
• Press officials for former right-wing ruling party Fidesz did not immediately respond to emailed questions seeking comment.
Audit and Documentation Findings
Challenges in Record Recovery
• Orban says an internal audit at the ministry could recover only what she described as a partial picture of pandemic-era purchases as some files and documentation had to be recovered electronically.
• The ministry has filed a report with prosecutors based on 88 gigabytes of information, or 130,000 recovered files.
Excessive Procurement and Storage Issues
Over-Purchasing of Ventilators
• Orban says the number of ventilators purchased by the foreign ministry far exceeded the number of doctors, intensive care nurses and hospital beds that could accommodate and operate them.
Current Status of the Ventilators
• Most ventilators purchased in 2020 still are stored in warehouses, Orban said.
Pricing and Vendor Analysis
Inflated Prices and Vendor Details
• Orban said import- and tax-authority figures show that the purchased ventilators were from Hungarian vendors at prices significantly above factory prices.
Additional Information
Exchange Rate and Reporting Credits
($1 = 311.26 forints)
(Reporting by Gergely Szakacs; Editing by Thomas Derpinghaus)
