Has Katalin Cseh become a liability for her own party group?

Has Katalin Cseh become a liability for her own party group?

Hundreds of millions in unpaid taxes, collection procedures by the tax authority, liquidated companies – these are only some of what has emerged around the vice-chair of the Renew Europe group and her family. The scandal and the tax evasion Katalin Cseh is embroiled in is causing tensions within the liberal party group of the European Parliament, which is even considering her exclusion.

POLITICS SEPTEMBER 16. 2021 19:29

The growing scandal involving the suspicious corporate affairs of MEP Katalin Cseh, vice-chair of the European Parliament’s Renew Europe Group, is starting to cause tensions within the party group.

Ms Cseh was the managing director of Pannonia Nyomda Kft (Pannonia Printing Ltd) for five years. As it turned out, the company founded by her father and the network of associated companies won more than 13 million euros in EU funding in recent years, while the politician and her party have frequently campaigned with the message that only companies close to the governing party can win such tenders in Hungary. Furthermore, the companies in question relocated to specific areas in order to maximise available EU support, and her company specifically won funding for developing a new technology which had already existed.

A press outlet recently unearthed new, murky details regarding the Cseh family’s business history. The Hungarian Kontra news portal took a closer look the corporate interests of the MEP’s father, Tibor Cseh, and found a “surprising tendency”, which they reported in a video. The company documents reveal that Mr Cseh and his associated partners

had in multiple cases accumulated tax debts of more than one hundred million forints (€286,000), with numerous tax authority collection proceedings being initiated against the companies in question. Moreover, the firms after racking up hundreds of millions in back taxes were run into the ground.

Pannonia Nyomda Kft (Pannonia Printing Ltd) was founded by clan head Tibor Cseh, while his daughter and liberal politician Katalin Cseh served as managing director. According to company registrar data, the Hungarian National Tax and Customs Authority initiated more than fifty collection procedures against the company between 2011 and 2020. Moreover, a significant portion of these procedures was initiated between 2013 and 2018, when Ms Cseh was the director of the company.

“In other words, the self-professed morally upstanding politician, is actually directly responsible for Pannonia Nyomda’s failure to pay taxes due,” the journalists noted in their video.

But Ms Cseh’s family and their business partners were also executive officers in several other companies that were usually liquidated after racking up considerable sums in unpaid taxes.

From 2008-2009, Tibor Cseh was executive officer and stakeholder of the Mackensen Kft (Mackensen Ltd). Mr Cseh was replaced at Mackensen in 2009 by his business partner, Gabor Halasz, who happens to be the current managing director of Pannonia Nyomda. Mackensen Kft was liquidated in 2014, but by 2010 had accumulated over 100 million forints (286 thousand euros) in back taxes.

Mr Cseh was the CEO of TIMP Kft (TIMP Ltd) between 1991 and 2010. This company had amassed over 100 million forints (286,000 euros) in tax debts by 2007 and was liquidated and terminated in 2010.

A similar situation occurred with Cseh es Lenard Kft (Cseh es Lenard Ltd), where the MEP’s father served as CEO between 2001 and 2005, eventually becoming a stakeholder. The company tallied over 100 million forints (286,000 euros) in unpaid taxes by 2007 and was liquidated and terminated in 2009.

At the Osoha NRG Kft (Osoha NRG Ltd) , the severity of the dubious dealings, resulted in Mr Cseh’s business partner being banned from directorship of companies until 2023.

According to information obtained by V4NA, Ms Cseh and the scandals surrounding her are beginning to irritate members of her European Parliament group

as the tax evasion cases reflect badly on the liberal party family and also puts them in the limelight.

V4NA has written the head of Renew Europe’s group leader Dacian Ciolos about the scandal, enquiring when the group is to discuss Ms Cseh’s exclusion.

POLITICS

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katalin cseh, renew europe, scandal, tax evasion