freelogoOur objective is to provide English speaking readers interested in Hungary with a well balanced view of political activities in Hungary by featuring contents from various printed and online sources together with our own commentaries. We are convinced that Hungary is built on all sorts of different ideas, thoughts and opinions and, despite of the new Media Law, our aim is to provide an alternative and reliable source of information – contrary to the one-sided press of the government – for those who want to hear the voice of a free Hungary.

Hungary says no request for MOL chief's extradition

Croatia has not submitted an extradition request for MOL Chief Executive Zsolt Hernadi, Hungary said on Tuesday, denying an earlier local newspaper report. "Based on currently available information, Croatia did not submit an extradition request," the Hungarian Public Administration and Justice Ministry told Reuters in an emailed response to questions about the report.
MOL communications director Andrea Panczel was also quoted by national news agency MTI as saying earlier that neither oil and gas group MOL, nor Hernadi, had received formal notification of such a request. The ministry added it had no information that Croatian authorities would have offered to question Hernadi in Hungary  And after that, Croatia’s prosecutor general told Bloomberg in an emailed statement that it had not issued a request to extradite Hernadi. Earlier on Tuesday the newspaper Nepszabadsag had said Croatia asked Hungary to extradite Hernadi in a case involving former Croatian premier Ivo Sanader.
Asked about the report at a press conference in Strasbourg on Tuesday, Hungarian Prime Minister Viktor Orbán said "we know of the charges". "We do not see it as an intergovernmental question; clearing up the charges is the task of law enforcement bodies," he added. Orbán said the state of Hungary would not agree to any changes in the contract between MOL and INA, commenting on an earlier report in the Croatian press that the Croatian government could cancel the contract. Hungarians has a 25% stake in MOL and it is "our firm stance as an owner that we will not agree to any modification of the contract," Orbán said.
Croatia is investigating allegations that Sanader was paid a 10 million euro ($14.5 million) bribe by MOL to gain management control at Croatian energy group INA , in which MOL has a 47.46 percent stake, local media reported last month. MOL and Sanader have denied any wrongdoing.
The Croatian prosecutor general's office said it did not have any information and local anti-corruption police unit USKOK declined to comment on the report. Sanader is in custody in Austria awaiting extradition to Croatia over a number of corruption investigations.
Financial analysts find all this rather unsettling. Attila Vago, equity analyst with Concorde Securities in Budapest, told the Financial Times: “If this [legal] process [against Hernadi} really begins, it would be very difficult to imagine a situation that is not accompanied by Hernadi’s resignation. This is why investors are very nervous. This management team has built Mol into a very profitable company in the past ten years.” “Earlier this year there was positive news, for example, from [Iraqi] Kurdistan [with an upward estimation of reserves], but since then there have been a lot of things affecting the share price performance,” Vago said. First came the Hungarian government’s decision to buy back a 21 per cent stake held by Surgutneftegaz, the Russian energy company, at the end of May. “This raised the question as to whether the state would influence the company in the wrong way, against the former management line,” says Vago.
Meanwhile, trouble was brewing in Croatia, after Mol tried to gain a majority stake in INA. This prompted a defensive reaction in Zagreb, followed by allegations by the Croatian regulator that Mol was using proxies to buy up INA shares – a charge stoutly denied by the Hungarians. Then, last month, Croatian media first raised allegations that Hernadi was implicated in bribing Sanader.
Whatever Croatian prosecutors now do, the whole affair has hit confidence in Mol. “It’s an awful situation there. It’s raised the question of whether Mol will retain its controlling rights over INA. Without Mol in charge, INA will not be the same company; Mol has done a lot to improve INA’s profitability,” says Vago.
Tamas Pletser, an EMEA oil and gas analyst with ING in Budapest, agrees. “Mol has cleaned up a lot of things at INA and hit the interests of many people in the process.” Pletser argues the attacks on Mol are primarily the result of “political games” prior to general elections in Croatia. “I think the tensions will be less after the elections in the autumn.” But if the worst comes to the worst, the consequences would go far beyond a criminal case against Hernadi. Should a Croatian court decide against Mol, it would allow the government to annul the INA shareholders’ agreement. That would be bad news for the company – and for Croatia. Pletser says: “Croatia is in economic trouble as it is. To change the shareholders’ agreement would send a very negative message to potential foreign investors.”

Last Updated on Friday, 30 August 2013 09:11



Written on 21/12/2017, 21:09 by admin
jerusalemJerusalem, the eternal capital of the state of Israel and the Jewish people, finally got the official recognition which was overdue for decades....
Written on 13/09/2017, 20:13 by admin
guest-post-eu-and-orban-two-good-friendsThe decision of the European Court of Justice, according to which Hungary should accomodate more than one thousand refugees is at the same time appaling...
Written on 06/10/2016, 19:58 by admin
guest-post-the-day-after-the-referendumThe much anticipated referendum about the resettlement of migrants in Hungary was declared invalid, however, those who voted overwhelmingly rejected the...
Written on 23/06/2016, 06:31 by admin
disintegration-or-something-else-gyurcsany-s-solutions-to-the-ills-of-western-democracies  Something has gone wrong. Quietly, but ever more noticeably, more and more people in more and more places are in revolt. In the American...
Written on 06/04/2016, 19:20 by admin
how-germany-and-its-leftist-liberal-supporters-killed-solidaritySolidarity. This is the word that is probably is the most used and misused term in European politics. Its original meaning is supposed to mean to show...
Written on 23/03/2016, 20:30 by admin
the-orban-regime-can-only-end-in-failure  Change in the Orbán regime is only possible in the event of its downfall, so ruling Fidesz either becomes successful with its current set of...
Written on 23/03/2016, 20:20 by admin
anger-or-resignation  No matter how hard Mr Orbán is trying to get rid of his old cronies, he just cannot get rid of himself. He is too old for his system. The...
Written on 14/01/2016, 20:51 by admin
europe-s-new-yearThe European continent had a very difficult year in 2015, but that may be dwarfed by 2016. The most heated issue will be, without a doubt, the migration...
Written on 09/12/2015, 14:16 by admin
the-secret-diaries-of-viktor-orban-nov-dec-2015November 14th 2015I awoke to the shocking news about the Paris attacks last night. Words cannot express my feelings of shock.It turns out that one of the...
Written on 12/11/2015, 14:31 by admin
spies-in-the-newsroom   According to a new scheme, the government might place spies in the newsrooms, to have a better view of what is being written. This all...
Joomla templates by Joomlashine