Kehi told MTI that Ökotárs has been involved in the distribution of funds under the Norway Grants scheme since 2008 and allocated as much as 2.5 billion forints (EUR 8m) in public funds in 2008- 2013.

During this period, it reported operational costs of nearly 180 million forints despite employing on average six persons only and generated profits of 111 million forints.

Kehi added that the foundation set up with a starting capital of 200,000 forints in 1994 had accumulated assets worth 469 million forints by the end of 2013, representing a more than 2,000-fold increase in less than 20 years.

The government agency insisted that as Ökotárs is involved with public funds, all relevant information should be transparent, and accused Ökotárs of secrecy over its activities.

Kehi has established that the distribution of funds under the Norway Grants scheme has been nontransparent, and has also revealed “undisciplined” accounting and, in some cases, serious abuse, the statement said.

A special unit of Hungary’s police force searched the Budapest offices of Ökotárs and DemNet foundations on Monday under suspicion of embezzlement and unauthorised financial activities.

These two foundations are members of a consortium that carries out the distribution of Norway Grants.

Source www.hungarymatters.hu

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