Hungary Investigates Ex-Minister's Role in BYD Investment After Resignation

Hungary’s government announced an investigation on Monday into a large foreign investment by Chinese carmaker BYD negotiated by a former foreign minister who last week resigned from parliament to take an executive position at the company.

Peter Szijjarto’s announcement last Wednesday that he would take the job at the world’s top electric carmaker prompted accusations of a conflict of interest and criticism over his role in organising substantial government subsidies to the company while in office.

Prime Minister Peter Magyar told lawmakers on Monday that Szijjarto, a close ally of former Prime Minister Viktor Orban, had helped BYD while he was in office “with hundreds of billions (of forints) in public money, diplomatic support and state infrastructure”.

“We will examine all the decisions, negotiations and state commitments made by Péter Szijjarto that were related to the BYD Hungary investment,” Magyar said on Monday.

He added the investigation would look into all subsidies, tax breaks, permits, environmental exemptions and publicly funded investments given to large multinational firms during Orban’s tenure.

“We will investigate who made these decisions, who prepared them, what professional warnings were ignored, and how much burden they left on Hungarian taxpayers, workers, local communities and the environment,” Magyar said.

Neither Szijjarto nor BYD has responded to Magyar’s allegations of conflict of interest while Szijjarto was in office. The former foreign minister has posed his new job as a “prestigious” opportunity to work for one of the “greatest success stories” in the automotive industry.