"The Central Investigative Prosecutors Office on Wednesday filed charges against Socialist former deputy mayor Miklos Hagyo and 14 associates, alleging misuse of funds at Budapest public transport company BKV. The indictment states that Hagyo founded and ran a criminal organisation involving top and medium-level BKV executives which cost the BKV Ft 1.5 billion from January 2007 to August 2008.
Hagyo allegedly treated the company as a private cash till from which he could cover his personal and political expenses that he was unable to fund from parliamentary or local government funds.
He is accused of ordering BKV leaders to sign contracts on communication, advertising, marketing and consulting that ignored considerations of reasonable finances and usefulness.
Prosecutors propose prison terms for 13 of the 14 defendants. The accused include Erno Mesterhazy, a former chief adviser to former mayor Gabor Demszky, former BKV managing directors Attila Antal and Zsolt Balogh and their deputies.
Legal experts say Hagyo could be sentenced to 20 years in prison, and Antal and Balogh to a maximum 16 years."
Source: Hungary Around the Clock
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