Hungary unveils new 'clean up' plan as governemnt takes first steps to unlocking frozen EU funds

Budapest will keep a list of economic operators who are barred from public tenders due to prior economic offences, fulfilling an EU obligation to restoring its access to critical funding. The Hungarian Integrity Authority is setting up a register of economic operators excluded from public procurement after they were deemed to have committed criminal offences. This measure, which is essential for the resumption of EU funding, is intended not only to weed out abuses but also to offer a chance for self-cleaning, according to the government. Budapest argued on Thursday that those who can prove that they have "restored their trustworthiness" should have their names removed from the register. The Hungarian Integrity Authority is also launching the first registration procedures and will begin keeping a list of economic operators excluded from public procurement. The primary purpose of operating this publicly accessible database is to ensure that no economic operator can take part in public procurement procedures if its executive officer, member of the supervisory board, managing director or beneficial owner has been the subject to a final court decision for criminal offences as defined in the Public Procurement Act. The authority stressed that the measure concerns a clearly defined group in legal terms; while making the information public was not about stigmatisation, but about preventing further abuses and ensuring the integrity of public procurement. How can companies be removed from the list? The self-cleaning procedure is conducted ex officio by the Integrity Authority through electronic administration. If the economic operator concerned by the procedure lodges an objection, it must, in its response, set out and document that it has compensated the damage caused by the criminal offence to the extent accepted by the injured party, or has undertaken to do so by a specified deadline. It must also show that it has cooperated actively with the competent authorities, fully clarified the facts and circumstances of the case, and introduced the technical, organisational and personnel measures needed to ensure that no further criminal offence is committed. The relevant authorities then have 20 days to assess the appeals and entries and decide whether to remove the economic operator in question from the register. The new register is then made readily available in the Electronic Public Procurement System.