Magyar Nemzet interview with Balogh Zsolt from March 6th,2010

                                                                                                                                  

 

Magyar Nemzet

"I handed over the money in a Nokia-box to Hagyó..."

06/03/2010 – 1,5 page - [2665742]

                       

* Interview with Zsolt Balogh, the former Acting CEO of BKV

 

-  It won't be an everyday interview. Why did you undertake it?

-  As you can imagine it is not a pleasant feeling to stand in front of the country and world on these issues, since my role within the BKV will be discussed in detail. But since I have received death threats, I feel that I must. By that everything I disclose to the public what was going on at the company, partly ease my conscience, partly I try to defuse the threats against me.

-  Are you taking those pressing messages that serious?

-  Because ultimately I know from whom it originates, I take it very seriously.

-  Is your conscience sound only now?

-  No. It became way,louder and louder. When the police came for me, honestly I was relieved.

-  And if they would have not come?

-  Sooner or later they had to come. Only the date was uncertain.

-  Let's start at the beginning. When did you start with BKV?

-  In December 2006, the company put out a tender for the position of Head of Investment, I applied for this to be honest with not much hope. At the time, there were layoffs at the company, people went away, and only a few came,  moreover, almost all the management positions were filled with the old BKV staffs.

-  At the time, Attila Antal was the CEO. Did you meet him before your application?

-  Yes, we met on a neutral event, then I handed to him my professional CV, but as I said, I didn't consider it to have a chance. Then my life took a turn when I was in the countryside for a month, then I got the news that they would interview me. Auditioned three times, then in April 2007 I finally got the job.

-  What does an investment group leader at the BKV?

-  Manages investment plans, supervises their preparation and conduct.

-  Were you capable for doing this?

-  I was working this or in a very similar job position for more than ten years at Matáv, then between 1998-2000, at Magyar Posta (Hungarian Post) I developed the investment monitoring system, so I think yes, I was capable. Of course at the BKV, the investments are taking place differently at this company for reasonable work, and there is no possibility for thoughtful planning.

- Why?

-  The current year is always slipped together with the previous year, the Metropolitan Municipality decides very late about the budget, the projects are on hold, then later post-haste to close them.

-  When did you get into politics?

-  Once in late September early October 2007. I became the deputy Chief Technical Officer.

-  How?

-  He called me int to his office.

-  Miklós Hagyó?

-  Yes. A plate was in front of him, with some forty ounce of cold meat, he was eating. As they introduced me to him, with both hands he stuffed himself, then looked at me and asked: So it's you? I said that seems that I am. Then he told me to be hard, because things must be done here, and who doesn't do it, has no mercy,  must be cut to the throat.

-  What a fine gentleman. But at least it was clear. Why didn't you leave?

                                                                                                                    

 

-  I had no knowledge about this world, with such people I didn't meet before. I am a Civil Engineer for Transport, who at the time was very happy to be promoted. This interlude I tried to forget.

-  Did you think that, that was all, and from then on you can dive into professional work? You can not be serious.

-  I found it kind of natural that they introduced me to the BKV Supervisory Deputy Mayor. The situation however, what I got into, I didn't recognize.

-  When was the first phone call?

-  In November 2007. It concerned an IT investment, which was won by a certain company.

-  Within clean circumstances?

-  Hardly.

-  Did they tell you such and such candidate to win?

-  It was customary that in general terms the policy is only referred to that sort of thing, often had to find out what they want.

-  What was said on the phone?

-  That the winning company will make a significant price increase, and extending the undertaken deadline. This is standard procedure. Maybe this kind of applications in form the best offer wins, but they always come with later changes, the increase in price and juggling with the deadline.

-  Who was on the other end of the line?

-  The man who introduced me to Miklós Hagyó, János Hatvani-Szabó.

-  Why didn't you send him to hell?

-  Because Hagyó told me, there in his office, that this is the person who will call me, and that is what he liked to call me personally. He explained this in detail. Somehow he expressed himself that Hatvani-Szabó will be my educational officer”.

-  Did you tell this to him on this particular phone call to Attila Antal CEO?

-  No, Hatvani-Szabo informed me that Antal knows everything.

-  Did you fulfill the request without a word?

-  No. I didn't understand why should I risk my job in such an indefensible case. I said that this was not going to work.

-  What was the reaction?

-  I had to go to Hagyó. Hagyó has a frustrating process. His habit is to seize people's neck as if to make friends, but to tolerate this is a real physical burden. He grabbed my neck too, and so we walked up and down the corridor in front of the office. In the meantime he said that the contract amendment however, it must be done, and the surplus money also must be paid before Christmas, that is, within a few days.

- What did you feel?

-  I was ashamed. To this day I feel ashamed.

-  Why?

-  Because I was duped.

-  And what did you do?

-  I allowed the modified contract to further and acknowledged the fulfillment.

-  Why?

-  Because I thought that I can not do anything else. I feared for my job.

-  And with that, set off the slope.

-  This is how it happened. Anyway this first occasion, did not leave in peace all along, so in spring 2009.again I took this IT investment issue, initiated an internal investigation and formally requested that certain companies to pay compensation for the late delivery for BKV. In response, from the head of the company I got continually threatening text messages.

-  Did you show anyone?

-  Yes, to Éva Horváth. I said that it's amazing what they were doing, stole a lot of money, and are even threatening. She said not to care about the case, I don't have to deal with the person as I have nothing to do with him.

-  How much money were we talking about?

-  Once I was going to Hagyó, and in his waiting room that earlier mentioned "educational officer" was sitting there. We talked, had the time, because Hagyó always kept people waiting long. He opened his bag, there was a large envelope with full of money and said, this came back from the investment ceded by me. He referred to the refund rate of forty percent. And this was one case of many.

-  What was the role of Éva Horváth at the BKV?

                                                                                                                    

 

-  She was a gendarme's hat.

-  I do not understand.

-  There was a story down here in the Alföld (the Great Hungarian Plain), at the time that if a gendarme could not appear at an event, they still put his hat there, by way of warning, that at anytime he can appear. In other words at the BKV, Éva Horváth represented and managed Hagyó's interests.

-  In early 2008, you became the company's Acting CEO, at first for two months. In what condition was BKV at that time?

-  The BKV practically was in flames. Used Bus procurement scandal, AAM contracts, strikes, CFO Norbert Tóth announced that from May, the company will be unaffordable, the ball was carrying around of the parameter book too. What would otherwise they used to adduce against me as an accusation, around this time I signed the returned employing contract of Mrs. Szalai Eleonóra Szilágyi. In fact, I signed it. I didn't even know where my head was, that which fire I should extinguish and when, it was never less than a daily seventeen signing block, and then Mrs. Szalai came over and asked if she should go away as her contract has expired. I told her not to go, especially now, when her expertise is needed because of the strike, I told her to stay and help. However, I didn't know that by that time she already received severance payment moreover an astronomical amount.

-  As the Acting CEO, did you meet more frequently with policy?

-  Yes. First, I created the legal department of the Internal Audit and Controlling Board, because oddly enough, before there was not such department at the BKV. With Miklós Hagyó, I had to consult about every little and personnel decisions. I had to send written submissions to Éva Horváth, and a response arrived usually with Hagyó's signature also via Éva Horváth. Otherwise the atmosphere was very tense because of the scandals that have also become a political issue. At the time of the scandal of the parameter book, Hagyó himself appeared in the big meeting room, accompanied by four or five men, with a red head screamed at us until dawn. Then I received an invitation from him to Gödöllő, he asked me to visit him. He had me waiting for an hour and a half, then in the apartment he said, that from now on he will give specific instructions, and that I have to pay an annual membership fee to him.

-  Pardon me?

-  You heard me. Fifteen million, in cash, before Christmas.

-  And how did this make you feel?

-  I left dizzy.

-  Did you bring him money?

-  The order of magnitude was about seventy million forint to come from me. Since then I know that 15 million fits in a Nokia-box, because once for example I gave him money in that.

-  Where did you get all this money from?

-  At the BKV leaders close to Hagyó put it together, they knew that I was going to deliver.

-  And where did they get it from?

-  From BKV associated companies.

-  Where did you hand over the Nokia-box to Hagyó?

-  In the room of Ottó Lelovits.

-  What did Hagyó say for the money?

-  He was happy and thanked me.

-  Why didn't you go to the police, why didn't you refuse to cooperate?

-  At that time, I was already afraid. I knew that because of that particular first case I am easy to blackmail, and I began to see, that how complex of money collecting organization I'm dealing with.

-  What made you see this?

-  I bumped into Hagyó's people everywhere. The strike at the BKV was in April 2008. Finally, we agreed with the strikers, we signed the agreement, and then someone told me to go up to my office. There they sat a few  trade union leaders, one or two directors, and they said, well, the strike is over, and now as usual some money must be returned to the unions, and with a pack should be sent to Hagyó too. I must have looked very silly, because they all nodded that, yes, you need to find the source for this. I called Hagyó, asking what's up, and he shouted at me so that I had to keep the phone off my ear. He knew about everything, and yelled that this must be done.

-  And union people were there too ...

-  Yes.

-  Did you get anything from the money?

-  Never, not one cent. I even left without leaving severance.

                                                                                                                     

 

-  Did it ever occur to you, that what a humiliating and especially guilty situation you got into?

-  Humiliating ...Of course it occurred to me. For instance Hagyó invited me for a conversation. Éva Horváth told me that I have to go here and there. I was waiting for an hour and a half at a street corner and no one was anywhere. I called Éva Horváth, that what is enough is enough, I'm leaving. Then she said, that they changed their minds and went elsewhere, so I should go there too. There I was again waiting for an hour, and then it turned out that they were inside. I went in and sat down. There was Hagyó, Ernő Mesterházy and György Tóthfalusi, Chairman of the Board of BKV. Hagyó said, that from now on I have to fulfill not only his requests but Tóthfalusi too.

-  And Mesterházy?

-  He said nothing, looked over us, watching TV.

-  What Tóthfalusi requested?

-  He had real estate related requests. He was interested in that.

-  When did you start to feel that the end is on the way?

-  When the news came that István Kocsis arrives. Then things sped up. Until I could, I held back the Communications Directorate contracts, didn't countersign, because this area was the most scandalous cases that had already erupted. It could be that far. Again in the room of Éva Horváth, that particular officer told me, that I must sign everything before Kocsis arrives. Eventually I signed them all, on the condition that for the content, I'm not willing to take responsibility, for those the professional managers are responsible, and my signature is on the papers only because of the rules.

-  I bring this up not for the first time, but these situations are so absurd that I have to ask again: why did you tolerate, why didn't you hit on the table, why didn't you turn to the authorities?

-  For the umpteenth time I can not give a good answer for this. Because I was weak-willed and cowardly. And while it is true that these events occurred, still the large part of my working time was filled in with meaningful and professional activity, in what I was good, and I liked to do. Moreover, by telling all of this to the public, I have another aim too. There are many weak people like me who must working at public companies. I would like to help them to learn from my lesson, and if they get into such cases, then get out of it, because for sure their story also won't have a happy end.

-  Will you cooperate with the authorities?

-  Yes.

 

 

*PÉTER CSERMELY

 

 

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