District leader expects internal investigation from mayor of Budapest in city hall scandal

Peter Niedermuller says Gergely Karacsony has no other option but to launch an internal investigation into the news about the sale of the City Hall.


In response to a question from Mediaworks News Centre, Peter Niedermuller, the leader of Budapest’s 7th district, said he expected Budapest Mayor Gergely Karacsony to launch an internal investigation into the scandal surrounding the planned sale of the City Hall.

“I am convinced that the mayor has no other choice but to launch an internal investigation. If he files a complaint of fraud, he has to justify it, otherwise it will be rejected by the investigating authority. So I am sure there will be an investigation along several lines. I think is the right thing to do, because whatever outcome of this story, this is a serious issue,” Mr Niedermuller said. The district mayor delegated by the DK party also said that he and Mr Karacsony would meet next Monday to discuss the matter.

The Hungarian news portal Index presented documents which the portal says prove that Northern Rock Kft, owned by Zsolt Berki entrusted the real estate broker Beak es Tarsa Ingatlankozvetito Kft to sell the City Hall. The contract determines the commission of the realtor at 1,150,000 euros (more than 400 million forints). The owner, Attila Endre Beak is well renowned in the real estate business and he is a board member of the Hungarian Real Estate Association (Maisz). Mr Beak is also known for his involvement in selling the headquarters of the MSZP party in 2009.

According to the contract obtained by Index, the purchase price of the City Hall would be 100 million euros plus VAT (more than 40 billion Hungarian forints). The commission of the real estate company would be paid from that huge sum if a deal is made.



mayor, scandal