Hungary’s former central bank governor Matolcsy detained
Hungary’s former central bank governor György Matolcsy was detained on Wednesday. His lawyer said he was suspected of economic fraud causing significant financial loss and use of a false private document. Prosecutors announced coordinated actions at several locations in the central bank investigation. The allegations remain under investigation.
Economics & Markets··Evening
Detention follows earlier questioning
György Matolcsy, the former governor of Hungary’s central bank, was detained early on Wednesday. Investigators took him to the Central Investigating Chief Prosecutor’s Office. Telex reported the detention on the basis of its own information. His lawyer, Pál Bátki, separately described the suspicions to the MTI news agency in comments carried by HVG.[1], [2]
Bátki said Matolcsy was suspected of economic fraud causing significant financial loss and use of a false private document. At the time of the lawyer’s comments, questioning as a suspect had not yet begun and was expected during the morning. These were allegations under investigation; the accounts did not report a conviction.[1], [2]
Prosecutors carry out coordinated actions
Prosecutors announced coordinated actions at several locations in a case concerning suspected breach of trust causing exceptionally significant financial loss. According to the statement carried by HVG, personnel from Hungary’s National Investigation Bureau, Budapest police headquarters and National Protective Service participated. Riot police secured the operations. Prosecutors said they would provide further information in the evening.[2]
Telex also reported other detentions, including a lawyer who worked for companies belonging to Matolcsy’s son Ádám and an executive of a company connected with Ádám Matolcsy and István Száraz. Those particulars came from Telex’s own reporting.[1]
Property complaints and parliamentary inquiry precede the arrest
In September, the central bank’s management filed complaints concerning suspected offences linked to impairment of five properties it owned. The suspicions included breach of trust, negligence, fraud and abuse of office. Governor Mihály Varga said the bank had supplied another thirty thousand pages to the parliamentary committee examining the institution’s earlier operations.[1]
The investigation’s background included state audit reports examining property investments and financial transactions around the central bank and its Pallas Athéné Domus Meriti Foundation. Telex distinguished Wednesday’s detention from Matolcsy’s questioning in a separate investigation on 22 September. He attended that earlier interview following a summons and was free to leave afterwards. The parliamentary investigation committee had been established after the change of government.[1], [2]
