Hungary may be unsuitable to remain U.S. ally - top U.S. diplomat

U.S. Chargé d'Affaires André Goodfriend, told a press conference that Washington first notified of the travel ban a state secretary of the Hungarian Foreign Ministry on 6 October then again on 13 October and on 17 October, also notifying Foreign Minister Péter Szijjártó. The names and the reason behind the ban were not disclosed and the ministry was informed because civil servants were also blacklisted, he added.

Szijjártó asked for a meeting the day after the local elections but the U.S. party still refused to give out the names and the trigger behind the travel ban, because Washington wants Hungarian authorities to take concrete steps, and also because it claims all the information are out in the open.

The U.S. Embassy cited privacy laws when rejecting to disclose the names of those involved. As there is a Visa Waiver Program in effect between the two countries (visa-free travel), however, it chose to notify those affected so they would not have to be returned aboard a plane.

Goodfriend makes it clear for Rogán

Responding to a question Goodfriend said family members could also be affected, as the law facilitates their ban too for they may spend the [corruptly gained] funds on the education of their children, for instance, which could be classified as a form of money laundering. He did not respond to a question whether family members were indeed also banned from entering the USA. He did say, however, that the ban could remain in effect for good. None of those on the list have objected or asked about the potential consequences so the ban is probably for good.

Hvg.hu reported last week that U.S. legislation facilitates the confiscation of the assets of the affected state officials and of their family members if those were gained via corruption. If their children study in U.S. schools they may be sent home, it added.

This is no joke, it is no laughing matter, it makes no sense to create a media story out of this, Goodfriend responded to Antal Rogán, head of the ruling Fidesz party’s parliamentary group, who was openly wondering whether the travel ban was a joke or a serious matter.

“It’s not April Fools’ Day," he said, adding that when a few state officials notify the cabinet [of their travel ban] they will know for sure it’s not a joke, index.hu reported.Six persons on the list, no comments on Bunge

Goodfriend also revealed that there are six - and not ten, contrary to earlier media reports - persons, state officials or persons close to the government, banned from entering the USA. He noted that the Hungarian government would not have to deal with people not having anything to do with the cabinet anyhow; notification in this case would not be necessary.

Goodfriend did not comment on Index reporting that one of the U.S. interests which was subject to corruption attempt was Bunge. If the visa case was not on the table and there was no privacy issue here, he could give more information, he said. Goodfriend also noted that the embassy is making reports on the business and corruption environment in Hungary, which involves discussions with businessmen. In this particular case, however, it will not comment reports.

U.S.-based Bunge, a producer of cooking oil, may be one of the companies whose allegations of corruption led Washington to ban entry to six Hungarian civil servants, Index reported.

According to its sources, the company may have sent signals to American diplomats in connection with VAT fraud on a scale of billions of forints, primarily affecting the cooking oil market.

Bunge estimates that fraudsters in the sunflower and rapeseed trade evade HUF 20-25 billion of VAT payments annually, 20% of the entire trade turnover.

Some estimates put the losses due to VAT fraud at an annual HUF 1 trillion.Bunge, producer of the Vénusz and Floriol brand cooking oils, says it cannot keep the prices of its cooking oil as low as those of rivals that obtain ingredients by evading VAT.

Clear and tough message to a worsening trend

Asked why this scandal hit now and why did not the USA commit itself to take such action, Goodfriend responded that corruption in Hungary has been on the table for some time now; there is evidence to that in various reports. The trend has been worsening in Hungary for 15 years now, he added. Goodfriend said the situation is completely different in countries where transparency and the level of democracy is a priori low or maybe rising, so the trend is at least good there. But Hungary started from an elevated level and shared common values with the Americans, in which it preceded its neighbours. However, a downward trend started and the situation is becoming increasingly aggravated.

Corruption trends in Hungary could continue to a level where the US could no longer co-operate with Hungary as an ally, US chargé d’affaires André Goodfriend told a Monday press conference.
If this trend continues it could reach a level where the U.S. could no longer co-operate with Hungary as an ally, Goodfriend said. The U.S. wanted to help stop this trend and avoid reaching that stage, he added.

Civilians should be taken seriously

Goodfriend said that in relation to the travel ban implemented on six Hungarians by the U.S. now the government is also cognizant of the suspected corruption cases, it would only need to take civilians seriously along with other warnings. According to 444.hu, he has once again mentioned the tobacco store concessions, where, he said, a lot of reports of abuse have never been investigated.

If the Hungarian government does not take seriously the reports by its own citizens, why does not it want information from the United States?, he asked.

The real question here is what kind of society is being built here and on what values, he asked Hungarian politicians who demand to see more evidence of corruption.Washington could act now

Getting back to the specific question Goodfriend said they have just reached a point where people involved in specific corruption cases became identifiable and based on these information it was time to act now.

Asked how unprecedented such a measure is Goodfriend responded he has not looked into this and cannot really do it either because of privacy issues, but Washington certainly never intended to create a media frenzy out of the travel ban.

444.hu said the list of names was approved in Washington on recommendations received from the U.S. Embassy in Budapest. The ban will remain in effect until it is lifted. Those affected may, in theory, request a revision of the decision, but no one has so far.

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