EU demands Hungary repay millions of euros in subsidies for purchasing Microsoft software

The European Commission's agencies successfully recovered €3.6 million and €4.7 million on two separate occasions in 2023 and 2024 in relation to the Microsoft case in Hungary, the press office of OLAF said in a statement sent in response to a question from HVG. In one case, the refund recommended by OLAF is still pending, but it is likely that a further €3.9 million will have to be repaid.

These are EU subsidies allocated for the purchase of Microsoft software, which, as it appears, will have to be repaid by the Hungarian state bodies that received the subsidies. After converting the above amounts, the Hungarian state has for sure lost 3.3 billion forints so far, and may stand to lose another 1.6 billion forints.

In addition to OLAF, the Hungarian Central Investigative Prosecutor's Office is also investigating the so-called Microsoft case. They began their investigation almost six years ago, but have not yet managed to charge anyone. According to OLAF, consultations between them and the Hungarian authorities are still ongoing.

The gist of the Microsoft scandal is that resellers working with Microsoft's Hungarian subsidiary—including a subsidiary of 4iG Nyrt.— received Microsoft licenses at very low prices, which they then sold at several times the original price to government agencies such as the National Tax and Customs Administration (NAV) and the National Police Headquarters (ORFK). An investigation by the US Securities and Exchange Commission found that the resellers and officials involved had agreed in advance on the value and timing of the public procurements so that they could then divide the price difference among themselves. Since then, OLAF has also been investigating the case, and Microsoft has severed its ties with Hungarian resellers, including 4iG's subsidiary, Humansoft Kft., which is also involved in the case.

4iG really took off, winning a whole series of public procurement contracts worth tens of millions under Gábor Felső’s leadership. However, there were suspicions surrounding the company's operations even prior to this. In 2015, for example, Átlátszó attempted to investigate what the aforementioned subsidiary, Humansoft Kft. had done with 1.5 billion forints (slightly more than 3,7 million euros) of EU subsidies in Mórahalom, but found little to show for it in the town.

While Gábor Felső was in charge, so starting in 2015, the construction company Duna Aszfalt, owned by László Szíjj, who is closely associated with Lőrinc Mészáros, appeared among the owners of 4iG, and it was around the same time that people linked to László Szíjj appeared in the company’s management. It was most likely at this point that Lőrinc Mészáros became interested in 4iG, which was raking in billions in state contracts. The gas repairman from Felcsút finally got his hands on the group in 2018, at which point Gábor Felső and Viktor Sagyibó, who had previously co-led the company with him, left. It is also telling that when the latter left 4iG, he went straight to being a ministerial commissioner in the Prime Minister's Office.