E-PM Attacks Hungary’s New Development Minister Over Alleged “Shady” Company Registrations

  • 30 Jun 2014 9:00 AM
E-PM Attacks Hungary’s New Development Minister Over Alleged “Shady” Company Registrations
The leftist opposition E-PM party has filed a complaint against Development Minister Miklós Seszták on suspicion of causing damage to the state budget. E-PM said, citing press reports, that Seszták as an attorney in 2000 had collaborated in the setup and later termination of hundreds of “phantom companies”, causing damage to the central budget.

Party co-leader Péter Juhász told a press conference that recent reports by online newspaper index.hu alleged that some 600 companies had been registered using the personal data of Ukrainian citizens and these were later shut down with substantial tax debts and without having engaged in any actual business activity.

E-PM and the Democratic Coalition (DK) earlier called on Seszták to resign over what they called his “shady dealings”. The development ministry responded in a statement saying that Seszták had obeyed the law and the rules of his profession when working as a lawyer. The ministry “firmly rejected” index.hu’s “malignant statements targeting Seszták, with the clear aim of damaging his reputation”.

Seszták is considering taking legal action against his defamers, they added. Erzsébet Kovács, a business partner in a multi-level marketing network, had come to Seszták’s defence earlier, saying he was the lawyer who signed several company registrations for foreign citizens who wanted to engage in MLM work back in the early 2000s.

But she insisted that the companies had caused no harm to the state as they had not generated any turnover. An investigation in 2005 found no wrongdoing in connection with these companies, Kovács said.

Source www.hungarymatters.hu

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MTI photo: Mohai Balázs

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