"CEO of Budapest transport company BKV Istvan Kocsis filed a report to the police in connection with management contracts that were disadvantageous to the state-owned firm.“BKV’s internal supervisory board has completed a 400-page report on the employment terms, salaries and bonuses of the 96 staff members who received severance payments of over Ft 10 million,” Kocsis told a press briefing. He added that there had in 48 of the 96 cases been bonus payments that were unfavourable to the company and omitted from contracts.
“BKV paid Ft 1.7 billion in severance payments to 100 people over 6 years; Ft 1 billion of that sum in 2007 alone,” Kocsis said.
Deputy mayor Csaba Horvath told state news agency MTI that the probe is “the first step in putting BKV back in order” after the recent wave of corruption scandals.
He added that new salary regulations banning special contracts and ensuring that separate bonuses are only payable for non-contracted work have been submitted in advance of the special Budapest city council meeting on October 12. These will be supervised annually by BKV’s supervisory board.
Budapest city council caucus leader Istvan Tarlos called Kocsis’s report on the company’s management contracts “a positive decision”, but added that BKV “is remaining silent on consultancy contracts, which constitute an even larger proportion of all its contracts”.
Source: Hungary Around the Clock.
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06.10.2009