Last Week, the U.S. government sanctioned Hungarian president Viktor Orban’s cabinet minister, Antal Rogan. According to a report in Politico, Rogan has allegedly used his office to enrich himself and other Orban allies. In particular, Rogan set up a procurement system that funneled lucrative government contracts to Rogan’s allies and Orban’s Fidesz Party in a broader sense. According to a report in the BBC, Rogan runs the Hungarian Intelligence Service, and NATO allies are loath to provide the Orban government with sensitive information for fear that it may end up in the hands of President Putin, with whom Orban has a close relationship. The sanctioning of Rogan will likely prove meaningless as the incoming Trump administration will rescind the order due to his close ties with Orban.
EU Takes Back €1 Billion From Hungary.
Last week, the EU stripped € 1.04 billion in aid from Hungary. The EU and Hungary have been at loggerheads over development money for several years. According to a report in Radio Free Europe, The EU believed that the Hungarian government had violated EU public procurement rules. This type of aid is critical for Hungary as the traditional economy as manufacturing has declined; the Orban government has relied on these payments to prop up the economy as well as to use for infrastructure such as football grounds or repaving roads (I can attest to the fact that they are very smooth). It will be fascinating to see how this plays out; Hungary needs the money, but unless Orban changes his leadership style (which is unlikely), I don’t see the EU changing its mind.
South Korean Authorities Seek Warrant for Ex-President.
Earlier this week, South Korean authorities issued a warrant for former president Yoon Suk Yeol after he instituted martial law in early December. According to a report from ABC, prosecutors intend to question Yoon on allegations of abuse of power and inciting a possible insurrection. Another report from The Guardian states that shortly after the warrants were issued against Yoon, a task force set up to investigate the order of martial law raided the office of the South Korean army’s counterintelligence unit in an attempt to figure out what role they played. If found guilty of the insurrection charges, Yoon faces life imprisonment or even the death penalty. The warrant is valid until January 6th, and Yoon could be held at Seoul’s central prison until then.
Indian Businessman Adani Facing Fraud Charges.
Today, it was announced that Gautam Adani is facing multiple federal fraud charges. According to a report in The Washington Post, Adani is the second richest man in India and a close ally to Prime Minister Modi. Adani has many interests, from real estate to coal mines and solar farms. According to a report in the Washington Post, the charges that Adani faces surround an alleged $265 million bribe paid to the Indian government and then supposedly lying to investors about the bribe. This is not the first time Adani has faced allegations of wrongdoing around potential stock manipulation. If Adani is found guilty, it could have significant political ramifications in India.
The Connection Between Orban and Football.
(Disclaimer: I spent a few days in Budapest last month: a lovely city).
There has long been a connection between football and Hungarian Prime Minister Viktor Orban. It has long been known that Orban loves the sport. According to an article on a website called Breaking The Lines, the Prime Minister would reportedly watch up to six matches a day(when does he find the time to run the country) and often attends the finals of the World Cup and UEFA Champions League (the biggest club competition in Europe). Orban was even included in the 2006 version of Football Manager (a well-known Football Management Simulator). Orban’s first connection to football came through his local village, Felscuit, where he supported his local club, Videoton FC.
In the 2010s, a massive stadium-building boom began in Hungary. In particular, a 4,000-seat stadium was built in 2014 in Felscuit (a village of 1,000 people) at the cost of 10 million Euros for Puskas Academy, the club that Orban founded in 2007. According to a report in the BBC, 2 billion pounds of government income were directed toward Hungarian football clubs for building stadiums and operating costs. Orban has actively encouraged Hungarian oligarchs to invest in football clubs as a form of tax relief and a way to be in his good books. Hungary has a curious practice whereby vast amounts of EU development funds meant for schools and hospitals get siphoned off to oligarchs or used for infrastructure projects that don’t seem strictly necessary (the motorways, for instance, are pristine). While all of this sounds admirable, Hungary is a country that is struggling economically, and spending 2 billion pounds of government income on building a new football stadium and not schools and hospitals doesn’t seem to be beneficial to the Hungarian people.
New York Mayor Adams Indicted on Corruption Charges.
Yesterday, the mayor of New York, Eric Adams, was indicted for corruption allegations. According to a report in the New York Times, Adams faces federal bribery charges, fraud, and soliciting illegal campaign funds from foreign countries. The central allegation facing Adams is that he conspired with the Turkish government to obtain funds for his re-election campaign. The federal indictment against Adams states that in return for the illegal funds, he pressured the New York Fire Department to approve the building of a new Turkish consulate despite serious concerns about its safety. According to another New York Times report, Adams reportedly solicited funds from Qatar, South Korea, Uzbekistan, Israel, and China. However, it is not just Adams facing criminal charges against him. According to the Times, the former and interim police commissioner, a former building commissioner, the deputy mayor, and a phalanx of aides are facing similar charges or, at the very least, have had to meet with federal investigators over possible corruption charges. Adams hasn’t resigned yet as of writing, but it seems like it’s only a matter of time until he does.
Two NYFD Chiefs Arrested in Corruption Probe.
Last Monday, two New York City Fire Department (NYFD) chiefs were arrested concerning an ongoing corruption investigation. According to a report in Newsweek Anthony Saccavino and Brian Cordasco are facing charges of bribery, making false statements, and wire fraud. The indictment against Saccavino and Cordasco alleges they accepted thousands of dollars in bribes for preferred treatment for specific individuals and companies. According to a report on ABC.com, they gave better fire safety inspections to entities willing to pay more. It is unclear what will happen next, but this could be the tip of the iceberg of corruption within the NYFD.
John Deere Facing 10 Million Dollar Fine from SEC.
Last week, the Securities and Exchange Commission (SEC) announced that it was fining John Deere $10 million to resolve allegations that it breached the Foreign & Corrupt Practices Act (FCPA). According to a report on a website called whistleblowersblog.org, Wirtgen Thailand, a subsidiary of John Deere, paid bribes to numerous Thai entities, including the Royal Thai Air Force and Department of Highways, to win government contracts. These bribes included but were not limited to cash payments, international travel, and visits to massage parlors. According to the SEC, when John Deere acquired Wirtgen Thailand, they failed to stop the bribery schemes from occurring. John Deere appears to be reaping what they have sown by failing to investigate their new acquisitions’ business practices.
Hochul Involved in Chinese Spying Scandal.
Last Week, an aide to New York State Governor Kathy Hochul was charged with spying for China. According to a report in The Guardian, Linda Sun, Hochul’s chief of staff, on direction from the Chinese government prevented Hochul from meeting Taiwanese officials. Sun also allegedly shaped policy in a way that was favorable to Chinese government interests. In return for her efforts, Sun and her husband received tickets to a Chinese orchestra and lavish meals, including Nanjing-style salted duck, as well as Sun and her husband purchased property and expensive cars. It is unclear what will happen next, but if found guilty, Sun will likely face prison.
Russian Deputy Defense Minister Arrested on Corruption Charges.
Last week, the former Deputy Defense Minister of Russia, Dmitry Bulgakov, was ordered to be held in pretrial detention on corruption charges. According to the Washington Post, Bulgakov is accused of embezzlement by supplying low-quality ration packs to Russian soldiers in Ukraine at vastly inflated prices. He was the deputy defense minister from 2008 to 2022 but was demoted because he was seen to have created a flawed logistical system for Russian troops on the front line. This is not the first time a high-ranking Russian military official has been arrested on corruption charges. According to a report in The Guardian, Russian policy observers believe this new Anti-Corruption policy aims to streamline the production of weapons and tanks. As for Bulgakov, I would guess he probably won’t see the light of day for a very long time, if ever.
Crispin Corruption Report 