Childhood friend, dorm roommate, hiking buddy and son-in-law of Viktor Orban, who married his eldest daughter. Lorinc Meszaros, Istwan Garancsi, Istwan Tiborcz and Lajos Simicska constitute the core of the Hungarian kleptocracy.
In addition to their close relationship with the former Prime Minister of Hungary, this group of men, sometimes known by the acronym MGTS, are united by the enormous success they have achieved in public tenders. Together with about 10 other entrepreneurs, they managed to win contracts worth (in total) tens of billions of euros. It was their companies that most often appeared in tenders in which only one entity competed.
As the report by the Budapest Center for Corruption Research reveals, from 2011, when Viktor Orban returned to power, until 2025, they have won public contracts worth over EUR 30 billion in total (PLN 126,966 million at the current exchange rate), operating either as independent companies or as part of larger consortiums. On average, this means that 13 entrepreneurs annually received approximately two billion euros (PLN 8,463 million) from Hungarian public funds or EU funds.
— There were years, such as 2020 or 2021, when they won as much as a quarter of all tenders, says the center's director Istwan Janos Toth in an interview with Aktuality. He started his research 10 years ago, when he noticed that a surprisingly large number of public contracts go to a narrow group.
This is proof that the Orban regime is a kleptocracy. Its basic function is to transfer funds into the pockets of people from the former prime minister's immediate circle
– he adds, noting that the “best” times for kleptocrats are over.
Toth also insists on using the term “kleptocrats” rather than “oligarchs.” As he explains, oligarchs are usually independent of government power. However, in the case of MGTS and others close to Orban, there is a clear link with government power.
An election poster of the nationalist Jobbik party with the words “OK, I admit it”, showing Prime Minister Viktor Orbán and Lorinc Meszaros, one of the richest men in Hungary, Miskolec, Hungary, March 30, 2018.MICHAL FLUDRA/NURPHOTO VIA AFP / AFP
“I expect Hungary to return to the rule of law”
Simply put, during Orban's rule, Hungarian authorities announced such conditions in public tenders that it was clear in advance who would be able to meet them and win. “So these were tailor-made tenders for Orban's cronies,” explains Toth.
The director of the Corruption Research Center points out that before the leader of the Fidesz party came to power, these numbers were much lower. Before 2011, this group of entities won less than five percent. public tenders. — After the fall of this kleptocratic regime, we may return to similar numbers, or even to zero, Toth hopes. In other words, Orban's allies may lose up to billions of euros a year.
Everything will depend on the new regulations announced by the winner of the Hungarian parliamentary elections, Peter Magyar. As Toth notes, the head of the future Hungarian government is talking, for example, about changes in institutions such as the Hungarian Public Procurement Office, but also in key economic enterprises.
— I expect Hungary to return to the rule of law. In a state of law, it is impossible to conduct public tenders that are tailored to the needs of specific entities, says Toth.
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One of the companies that Magyar wants to draw attention to should also be the Hungarian oil company MOL. It is the parent company of the Slovnaft refinery in Bratislava.
Zsolt Hernadi is currently the Chairman of the Management Board and CEO of MOL. A European arrest warrant was issued for him in the past on suspicion of corruption. – Hernadi and Orban have known each other for 40 years, they are very close – explains Toth.
Money from MOL also went to a Hungarian school called Mathias Corvinus Collegium and a think tank associated with it with the same name. Although part of the oil company's shares belong to the Hungarian state, its dividends went to an institution linked to Orban. It is similar, for example, in the case of the pharmaceutical company Gedeon Richter.
Toth hopes that the new prime minister will seek to change the position of the head of MOL. — A change in management would be a good step, he believes. — I believe that Hungary will return to a market economy, the researcher concludes. — Because kleptocracy and the free market are mutual enemies. I hope Magyar will have the political courage to take these steps, but the future is always uncertain.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
