Viktor Orbán’s longtime friend, Lőrinc Mészáros, who has become one of Hungary’s richest people in recent years, provided significant financial assistance through one of his companies to the prime minister’s father, Győző Orbán, for a major construction project, according to a confidential document obtained by Direkt36.

According to the document and a source familiar with the details of the investment, Mészáros’s company Talentis Group Beruházás-szervező Zrt. helped Győző Orbán by providing financial coverage for a project costing 3.6 billion forints (9.2 million euros at current rate) in 2023-2024. Coverage is the amount of money that the developer must prove to have before carrying out any major construction project in Hungary. According to the document, in this case, Mészáros’s company agreed to provide and pay the coverage on behalf of Győző Orbán.

Although the document in our possession contains little information about the investment, there are several indications that it refers to the controversial real estate complex in Hatvanpuszta, which Orbán’s father had been building for years. Photos and other documents had shown that the estate, which the prime minister’s family portrays as a modest farm building, is a property with luxurious-looking buildings and a well-maintained garden.

The document refers to the investment as “8087 Alcsútdoboz,” presumably referring to the location of the project (8087 is the postal code of the town). The Hatvanpuszta estate is located in the immediate vicinity of Alcsútdoboz, and several sources connected to the local government and construction industry told Direkt36 that they are not aware of any other major investments worth billions made by Győző Orbán in or near the village.

Other details also point to Hatvanpuszta as the location of the construction project. The document reveals that the construction work is being carried out by a company called Fejér B.Á.L. Zrt., owned by Lőrinc Mészáros and his children. One of the machines belonging to this company appeared in a photo of the Hatvanpuszta estate published by Ákos Hadházy, an independent member of parliament.

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This financial transaction related to the Alcsútdoboz investment is strong evidence of the close financial ties between the prime minister’s family and Lőrinc Mészáros, who has amassed a huge fortune thanks to government decisions.

Mészáros responded to our inquiry through a law firm. They did not answer our questions and emphasized that they do not confirm the authenticity of the document in our possession. At the same time, they pointed out that obtaining and possessing such a document may constitute a criminal offense of violating business secrets.

Zalán Novák, CEO of Első Fedezetkezelő Zrt., declined to answer our questions, stating that the information we requested was classified as “payment secrets.” He also added that disclosing such information could constitute a criminal offense.

Győző Orbán and Viktor Orbán did not respond to our inquiries.

Assistance to Győző Orbán

The document obtained by Direkt36 originates from a so-called collateral management procedure. According to the law, in construction projects in Hungary with a value of more than 2.1 billion forints (5.5 million euros), the investor is required to involve a collateral manager in the project.

The investor must prove that they have the funds to carry out the project and must transfer this money to the collateral management company according to a specific schedule, from which the contractor carrying out the construction work will receive payment for their work.

This practice became law at the end of 2009 to avoid a previously serious problem of contractors not receiving their money for construction projects.

One of the largest companies in the Hungarian collateral management market is Első Fedezetkezelő Zrt., a company established in early 2010. This company also managed the financial coverage for Győző Orbán’s investment, in which Lőrinc Mészáros’s companies appeared.

The document about the Fulfilment Partnership. We have covered personal data.

The document in our possession is an appendix to the file on this matter. This document, entitled “Statement of Fulfiment Partner on the provision of financial cover” states that Talentis Group, owned by Lőrinc Mészáros, appears as a so-called “Fulfilment Partner” in Győző Orbán’s investment.

“We, the undersigned Fulfilment Partner on the basis of an agreement concluded with the Builder wish to provide the financial cover instead of the Builder,”

states the document signed by one of Talentis’ board members, in which the term “Builder” refers to Győző Orbán.

Talentis had to justify why they were paying the financial cover on behalf of Győző Orbán. The options included whether the decision was based on some kind of ownership or contractual relationship, or possibly a bank loan. Mészáros’s company chose the “other” option and simply wrote that it had become a fulfilment partner “with regard to ongoing business negotiations.”

Neither Mészáros, nor Győző Orbán responded to our question what these negotiations were.

It seems that Mészáros had a lot of trust in Orbán’s father. The statement also says that the financial cover was provided as if it had been on behalf of Győző Orbán. The document states that the financial cover will be deposited into the account of Első Fedezetkezelő Zrt.. Talentis also stated that they acknowledged that they “shall not be entitled to reclaim the amount(s)” and it can only be reclaimed „by the Builder”, that is Győző Orbán. In other words, after the money was transferred, Mészáros and his associates completely removed their hands from the money and transferred the right of disposal to the prime minister’s father.

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The statement also mentions that Talentis provided the financial cover as a “cash deposit” and that they plan to replace the cash later “partially or fully with a bank guarantee.” We asked Talentis what this meant in practice but they did not answer our question.

Unusual solution

Several sources familiar with the construction industry and collateral management consider this entire arrangement unusual. “I’ve never heard anything like this,” said a construction contractor when we outlined to him, without naming specific parties, that a company independent of the investor on paper would be involved in providing financial cover as a fulfilment partner.

Legal experts found it strange that someone would receive assistance from a company when there was no official ownership relationship between them. They also considered it unusual that the same company appears on both sides of the transaction. In this case, one of Mészáros’s companies is providing financial cover for a construction project that is being carried out by another of his interests, Fejér B.Á.L.. Between the two companies is Győző Orbán, who, at least according to the documents, does not have to take any financial risk, while the investment is being carried out in his interest.

When we described the arrangement to a lawyer working with contracts like these without naming the specific parties involved, he did not understand how this could be possible at first.

“Let’s think about it: the contractor and the developer agree that if the developer fails to pay the contractor for some reason, the contractor will pay himself the fee? Should I take on the job and then pay myself? What’s the point of that?”

asked the lawyer.

Projects for billions of forints

The document we obtained was dated in 2023, and according to a source familiar with the details of the transaction, the planned construction began in May of that year and was scheduled for completion at the end of June 2024. According to the source, the planned value of the project was 3.6 billion forints.

A fence and tarpaulin cover one of the entrances to the estate in Hatvanpuszta. Photo: Direkt36

There is no information about the exact nature of the work, but if the transaction was indeed related to the construction in Hatvanpuszta, construction was in progress there at the time. Therefore, the document in our possession presumably refers to a phase of the developments that have been going on there for years.

In November 2023, Gulyáságyú Média reported that they had observed “significant construction activity” in the area, and their video showed a new building under construction on the estate.  Half a year later, footage taken by independent MP Ákos Hadházy in collaboration with the news outlet showed that a new structure had been built in the middle of the estate, with a greenhouse on top.

Győző Orbán’s estate in Hatvanpuszta, which he purchased through one of his companies in 2011, had previously been linked to Lőrinc Mészáros. In response to a question from Átlátszó, Mészáros said in 2012 that he was renting the land from the prime minister’s father to store his equipment.  Journalist Krisztina Ferenczi also wrote in her book Narancsbőr that Mészáros paid Orbán’s company the rent for ten years in advance.

The transformation of the estate began around 2019. At the time, Ákos Hadházy published aerial photographs of the construction, and two years later, the media outlet HVG spotted construction equipment belonging to one of Mészáros’ companies, Mészáros M1 Autókereskedő Kft.

Viktor Orbán has repeatedly stated that the estate does not belong to him, but to his father, and that his wife, Anikó Lévai, only goes to Hatvanpuszta when his father asks her to. The prime minister tried to describe the estate as insignificant, referring to it as a farm in one of his statements.  However, the energy certificates for the buildings revealed that the larger wing of the building complex was registered as a residential building.

One of the buildings on the Hatvanpuszta estate. Photo: Direkt36

Direkt36 journalists also visited Hatvanpuszta one day in September, but there was no significant activity around the estate at the time, and we did not see the prime minister’s father or any other family members there.

We also went to Győző Orbán’s quarry in Gánt. There, one of the workers initially denied that the prime minister’s father was on site, but during the conversation, Győző Orbán suddenly appeared.

After we introduced ourselves to him, he simply said, “My dears, I don’t receive visitors without an appointment; you need to make an appointment in advance by email.” We told him that we wanted to ask him about the investment in Hatvanpuszta, but he told us to leave because it was private property. Then he went back to the office building at the entrance of the quarry.

He has not responded to an email message that had been sent several days before this article was published.

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Illustration: Péter Somogyi (szarvas) / Telex