Hundreds of millions in unpaid taxes tallied in liberal MEP's family scandal

Hundreds of millions in unpaid taxes tallied in liberal MEP's family scandal

Back taxes in excess of hundreds of millions, tax debt collection procedures and bankrupted companies. These are the latest details revealed in the scandal surrounding Liberal MEP Katalin Cseh and her family businesses. V4NA wrote to the Vice-President of the European Commission regarding the issue.

POLITICS SEPTEMBER 15. 2021 13:35

There are new details in the scandal surrounding an MEP of the Hungarian liberal Momentum party. Katalin Cseh, now Vice-Chair of the EP Renew Europe Group, 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 its associated company network have 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.

A press outlet has recently unearthed new, murky details regarding the Cseh family’s business history. The Hungarian Kontra news portal took a closer look at 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 racking up hundreds of millions in back taxes were run into the ground.

As Kontra puts it, „Tibor Cseh, who mainly dealt in the printing industry, has used not only EU funds and public procurement to finance the luxury lifestyle of his daughter and family, but also unpaid taxes.”

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 part of these foreclosures was initiated between 2013 and 2018, when Ms Cseh was the CEO of the company.

“In other words, the politician, who claims to be moral, bears a serious responsibility for Pannonia Nyomda’s failure to pay public charges,” the journalists noted in their video.

But Ms Cseh’s father was also CEO in several other companies that were usually liquidated after ran up large amounts in tax arrears.

Tibor Cseh was a CEO and owner in Mackensen Kft (Mackensen Ltd) from 2008 to 2009. Mr Cseh was followed by his business partner Gabor Halasz, the current CEO of Pannonia Nyomda, as CEO from 2009 to 2014.

The company was liquidated by 2014, but by 2010

it has 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 has accumulated over 100 million forints (€286,000) in back tax by 2007 and was liquidated and shut down in 2010.

The situation was similar with Cseh es Lenard Kft (Ltd), where the MEP’s father served as CEO between 2001 and 2005, later also becoming the owner. The company accumulated over 100 million forints (€286,000) in back tax liabilities by 2007 and was liquidated and ran into the ground in 2009.

Osoha NRG Kft (Ltd) has witness a number of serious incidents, resulting in Mr Cseh’s business partner

being banned from managing companies until 2023.

V4NA has sent European Commission Vice-President Vera Jourova a written inquiry regarding the latest developments in the scandal surrounding the Renew group’s vice president. We asked whether she finds it alarming that leaders of companies that have accumulated hundreds of millions of forints (hundreds of thousands of euros) in tax arrears in Hungary won billions of forints in EU funding with other companies.

We also asked if she spoke to Ms Cseh about the scandal and if she expressed her concerns about these cases that damage the reputation of the EU’s institutions .

 

POLITICS

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Hungary, katalin cseh, momentum, scandal