1. State capture and the use of EU funds in Hungary András Lukács Clean Air Action Group (Hungary) Conference on VAT fraud in EU Member States and the competence of the EU Institutions Brussels, 4 February 2015

2. István Jávor, sociologist, researcher at the Budapest University ELTE Why is István Jávor not holding a presentation here today? He was sued by the Hungarian tax authority (NAV), and the first trial by the jury will occur this week. atlatszo.hu

3. According to the denouncement made by NAV, István Jávor 1) stated that NAV is ruining certain companies illegally and on purpose;

4. According to the denouncement made by NAV, István Jávor 2) knows persons who contributed to the banning of several leaders of NAV from entering the US; 3) he knows persons who created the NGO “Hungarian Anti- Corruption Alliance”, and he is a member of this NGO; 4) made statements that helped the demonstrations against the government; 5) is responsible for the posters “We will not pay tax to the corrupt NAV”, held up during these demonstrations, and this way he is endangering the revenues of the state; 6) presents studies during his lectures in the university which have undesirable effects on the students.

5. atlatszo.hu Dávid Jancsics, sociologist is a graduate of the Budapest University ELTE. At present he is doing research and teaching at the City University of New York. István Jávor and Dávid Jancsics wrote the study “The Role of Power in Organizational Corruption: An Empirical Study”. It won the 2014 Best Article Award from the Public and Nonprofit Division of Academy of Management (USA). https://www.academia.edu/5410004/The_Role_of_Power_in_Organizational_Corruption_An_Empirical_Study_Winner_of _the_2014_Best_Article_Award_from_the_Public_and_Nonprofit_Division_of_Academy_of_Management_

6. According to Dávid Jancsics, “…there was a qualitative leap with the government change of 2010 when FIDESZ became the governing power. In theory, corruption is a secret agreement that circumvents the existing rules, but now – by contrast – the rules and the structure of the state are tailored to fit the corrupt transactions. In the previous era the networks of strong economical and political actors were tied in into police organizations, the prosecution or the National Tax and Customs Authority, by which the controls could be switched off in some cases. Now that FIDESZ has set the large controlling organizations and the ’independent’ branches of power to manual control, they also switched this control completely off.” http://english.atlatszo.hu/2014/09/20/fidesz-has-set-the-large-controlling-organizations-and-the-independent-branches-of- power-to-manual-control/

7. „Lawful corruption is rapidly spreading and being institutionalized in Hungary.” István Jávor It became almost everyday practice that new laws are approved or existing ones are amended so that they unjustly favor certain business groups. Moreover, laws are often interpreted and implemented in very strange ways…

8. Just one example: According to the law, public tenders can be be made secret in the interest of national security. In recent years, there have been far too many such tenders…

9. The role of EU funds…

10. Imre Kovách Scientific Advisor (formerly Director) of the Institute for Sociology of the Hungarian Academy of Sciences Presenting the new study of the Institute, „Elite and social integration”, Imre Kovách said: “The main reason the business élite started to be involved in politics, and to side with political parties and persons, is the fact that Hungary joined the EU, from where thousands of billions of Forints started to flow to us. It was already worth influencing the allocation of this money, and it became possible to get substantial financial resources as winners of applications for grants.”

11. Proposals of the Clean Air Action Group for better use of EU funds 1.Indicators on national level determined and enforced 2.No direct discretionary funding for companies (except: innovation) 3.No payment to the user/polluter 4.Concrete measures to combat corruption and other malfeasance 5.Reallocation of funds: Fund only public goods! 6.Take into account operation, maintenance & amortization costs after the investment is completed 7.Control by independent EU institution, financed by the Commission, in the Member State 8.Strict implementation of the Code of Conduct

12. The role of EU money in creating the state capture in Hungary – and possible solutions Good Intentions Meet Reality: The Dire Consequences of Spending EU Taxpayers’ Money in Hungary. April 2013, http://www.levego.hu/sites/default/files/eu_budget_hungary_130404_final.doc Comments of the Clean Air Action Group on the Operational Programmes of Hungary for 2014-2020 submitted to the European Commission. 28 August 2014, http://www.levego.hu/sites/default/files/op-comments-caag-2014aug28v.pdf 2014 Country Specific Recommendations in Support of the European Semester Process (Hungary – from p. 24). Green Budget Europe and CEE Bankwatch Network., http://www.foes.de/pdf/2014-04-CSR_Recommendations_2014_20140404_FINAL.pdf

13. http://www.transportenvironment.org/sites/te/files/2015%201%20Hungary_ action_letter_Juncker_Timmermans_Cretu.pdf

14. The European Commission must immediately stop financing organised crime groups!

15. Clean Air Action Group www.levego.hu András Lukács lukacs @ levego.hu Köszönöm a megtisztelő figyelmüket! Multan dankon pro via atento! Thank you for your attention! Merci beaucoup pour votre attention! ¡Gracias por la atención! Vielen Dank für Ihre/Eure Aufmerksamkeit! Grazie per l’attenzione! Спасибо за Ваше внимание! Asante kwa kunisikiliza!

16. http://greenmediabox.eu/en/ct/72-VAT-frauds-in-EU-Member- States-and-the-competence-of-the-EU-Institutions-