Hungary creates powerful anti-corruption agency to recover assets from Orbán era

Hungary’s parliament has approved the creation of a powerful National Asset Recovery and Asset Protection Office (NVH), delivering one of Prime Minister Péter Magyar’s flagship anti-corruption pledges – to investigate alleged corruption and recover public assets accumulated during Viktor Orbán’s 16 years in power.

The legislation passed with 143 votes in favour and 47 against mostly from Orbán’s Fidesz party.

“Without exploring the systemic abuses that have developed in recent decades, the transparent and responsible state operation necessary for the restoration of public trust cannot be achieved”, Deputy PM Bálint Ruff wrote in the bill’s explanatory memorandum.

“Under the law, the exploration of past loss of public property is a prerequisite for democratic reconstruction,” he added

According to the government, around 30 trillion forints (around €83 billion) in public assets have been illegally transferred into private hands over the past 20 years.

Sweeping investigative powers

Unlike comparable anti-corruption institutions elsewhere in Europe, the Hungarian office will combine powers that are normally divided among prosecutors, police, financial investigators and civil litigators.

The authority will be able to launch public asset investigations without requiring prior suspicion of a criminal offence.

It will also have the power to take over corruption investigations initiated by other authorities, examine confidential banking information, official records and financial documents, and request assistance from the police, prosecutors and the National Tax and Customs Administration.

Depending on its findings, the office will be able to initiate criminal proceedings, file civil lawsuits to recover state assets, and launch public property protection procedures.

Among its most far-reaching powers are the ability to impose fines of up to 5 billion forints ($14 million) for obstructing investigations and to place companies suspected of misusing public assets under temporary state supervision.

The office will report directly to parliament rather than the government. Its president and four vice-presidents are due to be elected within 30 days of the law entering into force. Three of the four deputy heads will be prosecutors, while the leadership will enjoy immunity and special police protection.

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Fulfilling a campaign pledge

The creation of the agency was one of the central promises of Magyar’s Tisza Party during the 2026 election campaign.

Magyar first proposed the institution in July 2025, arguing that many trillion forints had been diverted into private hands during the Orbán era. At the time, he pledged that the office would investigate major corruption cases, review concession contracts and scrutinise the asset management practices of previous governments.

Following Tisza’s election victory in April, the Magyar’s government submitted the legislation on 10 July.

Minutes after parliament approved the bill, Magyar wrote on Facebook that lawmakers had backed the creation of the office despite opposition from Fidesz.

The government has already begun acting on its anti-corruption agenda. It recently referred to police suspected misuse of public funds linked to the previous administration’s procurement of training software.

Magyar has also announced plans to broaden Hungary’s corporate tax base by abolishing what he called the “selective” taxes introduced during the Orbán era.

The establishment of the National Asset Recovery and Asset Protection Office marks one of the most significant institutional changes introduced by Hungary’s new government since Tisza defeated Viktor Orbán’s Fidesz in the April 2026 election.

The administration has made anti-corruption reforms, recovery of allegedly misappropriated public assets and greater fiscal transparency central to its programme, while promising to revisit several major state contracts and investigate high-profile cases linked to previous governments.

Paradoxical situation

Hungary’s anti-corruption landscape has become increasingly paradoxical. While the Magyar government is creating a powerful new asset recovery agency to investigate high-level corruption, the head of the country’s existing Integrity Authority, Ferenc Pál Biró, remains formally in office despite facing criminal charges.

Hungary’s Integrity Authority chief charged with corruption-related offences

Earlier this June, Hungary’s Central Chief Prosecutor’s Office charged Biró with abuse of office, mismanagement of public funds and other criminal offences. Prosecutors filed the indictment with the Budapest Central District Court on 5 June, alleging that a series of unlawful decisions and expenditures caused the Integrity Authority losses exceeding HUF 140 million (€350,000).

The Integrity Authority was established in 2022 as part of Hungary’s efforts to address the European Commission’s concerns over corruption and the protection of EU funds. The watchdog became a key element of Budapest’s attempts to rebuild trust with Brussels after years of disputes over rule-of-law standards.

According to prosecutors, one of the most serious allegations concerns the use of official vehicles. They claim that although Biró already had access to a chauffeur-driven official car, he continued leasing a luxury SUV at the Authority’s expense and allowed his wife to use it exclusively for private purposes. The prosecution further alleges that the vehicle was fuelled using public money, generating around HUF 21 million in unnecessary costs.

Biró has rejected the allegations. He argued that the Authority leases around 20 vehicles and that senior officials are permitted to allow family members to use them. He also maintained that the SUV in question was his designated vehicle and that his wife had used it only for ordinary family activities.

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Sources: HVG, Telex, Reuters

Caption: Lawmakers of the ruling Tisza party celebrate parliament’s adoption of draft legislation to set up the Asset Recovery and Protection Office at the extraordinary session of the National Assembly in Budapest, Hungary, 28 July 2026. The authority is tasked with protecting public assets, investigating unlawful management under the previous government and recovering the assets lost to unlawful practices. EPA/Zsolt Szigetvary