1/
Re: #RuleofLaw and #Hungary
A story that is an indepletable well of beautiful rule-of-law gems,
L'dies and G'men: the expropriation of cigarettes retail sales and its passing over to Fidesz networks.
@rdanielkelemen @fromTGA @luca_badini @MwiWind @radosveta_vass @CasMudde
Re: #RuleofLaw and #Hungary
A story that is an indepletable well of beautiful rule-of-law gems,
L'dies and G'men: the expropriation of cigarettes retail sales and its passing over to Fidesz networks.
@rdanielkelemen @fromTGA @luca_badini @MwiWind @radosveta_vass @CasMudde
2/
It happened in April 2013 that Orban's government surprisingly announced that the retail sale of cigarettes shall be restricted to a low number of specialized shops across the country, as soon as from July 1st.
It happened in April 2013 that Orban's government surprisingly announced that the retail sale of cigarettes shall be restricted to a low number of specialized shops across the country, as soon as from July 1st.
3/
All other existing sellers (1000s of small shops, supermarkets, gas stations etc) shall be forbidden to sell cigarettes in less than three months. The number of new authorized dedicated cigs shops was so small that they would have effective monopolies in their surroundings.
All other existing sellers (1000s of small shops, supermarkets, gas stations etc) shall be forbidden to sell cigarettes in less than three months. The number of new authorized dedicated cigs shops was so small that they would have effective monopolies in their surroundings.
4/
The move was explained with the need to curb young peoples’ access to cigarettes and providing work and living for "ordinary Hungarian people" (as opposed to bad, bad international retailer groups).
The move was explained with the need to curb young peoples’ access to cigarettes and providing work and living for "ordinary Hungarian people" (as opposed to bad, bad international retailer groups).
5/
In a matter of *weeks*, the lucky winners of these new concessions were selected in what was an allegedly fair and open process.
However, soon more and more cases emerged in the press which suggested that many new concession winners were attached to the governing Fidesz party
In a matter of *weeks*, the lucky winners of these new concessions were selected in what was an allegedly fair and open process.
However, soon more and more cases emerged in the press which suggested that many new concession winners were attached to the governing Fidesz party
6/
Among them were many friends & relatives of Fidesz MPs and local representatives, but also people like the chief editor of the national news agency. In some towns, the 2 concessions were won by the (Fidesz) mayor and his wife. Most winners had never had any retail activities.
Among them were many friends & relatives of Fidesz MPs and local representatives, but also people like the chief editor of the national news agency. In some towns, the 2 concessions were won by the (Fidesz) mayor and his wife. Most winners had never had any retail activities.
7/
Parallel it came out that most existing small shop owners failed to win a concession and were facing closure given cigarettes was their anchor product. The press found out that many were approached by the new winners offering ‘cooperation’ in the operation of the new shops.
Parallel it came out that most existing small shop owners failed to win a concession and were facing closure given cigarettes was their anchor product. The press found out that many were approached by the new winners offering ‘cooperation’ in the operation of the new shops.
8/
Evidence mounted that a few firms won vast numbers of concessions. One of the largest winners was Continental Tobacco, with close ties to Janos Lazar, head of the prime minister’s office.
Later it came out that Continental in fact wrote large parts of the new law’s text.
Evidence mounted that a few firms won vast numbers of concessions. One of the largest winners was Continental Tobacco, with close ties to Janos Lazar, head of the prime minister’s office.
Later it came out that Continental in fact wrote large parts of the new law’s text.
9/
So the emerging impression was that this entire project was effectively an expropriation of existing shop owners and others sellers of cigs, and a redirection of related incomes to Fidesz’ entourage.
So the emerging impression was that this entire project was effectively an expropriation of existing shop owners and others sellers of cigs, and a redirection of related incomes to Fidesz’ entourage.
10/
As a matter of fact, the fixed price margin for cigs was immediately raised by parliament from 3% to 10%, thereby providing very respectable incomes to the new shop owners.
As a matter of fact, the fixed price margin for cigs was immediately raised by parliament from 3% to 10%, thereby providing very respectable incomes to the new shop owners.
11/
Media’s attention turned to the process which decided who would win the concessions. Journalists filed information requests to the ministry in order to get insight into the docs, and scoring of the applications; requests that could not be declined under the existing law.
Media’s attention turned to the process which decided who would win the concessions. Journalists filed information requests to the ministry in order to get insight into the docs, and scoring of the applications; requests that could not be declined under the existing law.
12/
Fidesz’ two-thirds parliamentary majority reacted quickly by changing the respective information law retroactively
(-> no disclosure) and introducing into the law the concept of "abusive information request" as a punishable offense.
Fidesz’ two-thirds parliamentary majority reacted quickly by changing the respective information law retroactively
(-> no disclosure) and introducing into the law the concept of "abusive information request" as a punishable offense.
13/
Additionally, the minister decided to immediately send back to all applicants their applications, so in any case they would not have to be disclosed to media. The press thus got hold of some sent-back unsuccessful applications, only to find that those hadn’t ever been opened.
Additionally, the minister decided to immediately send back to all applicants their applications, so in any case they would not have to be disclosed to media. The press thus got hold of some sent-back unsuccessful applications, only to find that those hadn’t ever been opened.
14/
In the meantime, rumors hit the press on how local Fidesz groups were influencing who would win the concessions. One local Fidesz representative, @hadhazyakos claimed that in his city, it was the (Fidesz) mayor and the local Fidesz townhall group who handpicked the winners.
In the meantime, rumors hit the press on how local Fidesz groups were influencing who would win the concessions. One local Fidesz representative, @hadhazyakos claimed that in his city, it was the (Fidesz) mayor and the local Fidesz townhall group who handpicked the winners.
15/
The claim was rejected by Fidesz, however then voice recordings emerged which proved just that. Of course there were no consequences, except the ‘traitor’ @hadhazyakos had to leave Fidesz and a smear campaign was started against him, citing alleged corruption cases of his.
The claim was rejected by Fidesz, however then voice recordings emerged which proved just that. Of course there were no consequences, except the ‘traitor’ @hadhazyakos had to leave Fidesz and a smear campaign was started against him, citing alleged corruption cases of his.
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[Ever since then, @hadhazyakos has fought with respectable courage and determination to expose Fidesz' corruption]
[Ever since then, @hadhazyakos has fought with respectable courage and determination to expose Fidesz' corruption]
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Based on the tapes clearly evidencing the fraud, several notions were filed to the state prosecutor's office (headed by former Fidesz MP Peter Polt), which however decided the tapes did not necessitate an investigation as they contained no tracess of any wrongdoing.
Based on the tapes clearly evidencing the fraud, several notions were filed to the state prosecutor's office (headed by former Fidesz MP Peter Polt), which however decided the tapes did not necessitate an investigation as they contained no tracess of any wrongdoing.
18/
One action it did take however, namely starting an investigation into whether personality rights of the fidesz-people on the tapes had been violated by recording their conversation in which they decided on the concession winners.
One action it did take however, namely starting an investigation into whether personality rights of the fidesz-people on the tapes had been violated by recording their conversation in which they decided on the concession winners.
19/
There are some more fine details to this story allowing glimpses into the workings of Orban's Hungary and the state of Rule of Law:
- The conditions of the competition for concessions required that anyone competing waives any right to legal action against the decision
There are some more fine details to this story allowing glimpses into the workings of Orban's Hungary and the state of Rule of Law:
- The conditions of the competition for concessions required that anyone competing waives any right to legal action against the decision
20/
-Orban made sure the new status quo could not be changed easily by a future government. Contracts signed with the winners stipulate that if the concessions were to be revoked, or further sellers be allowed into the sector, then the gov would have to pay high compensation fees
-Orban made sure the new status quo could not be changed easily by a future government. Contracts signed with the winners stipulate that if the concessions were to be revoked, or further sellers be allowed into the sector, then the gov would have to pay high compensation fees
21/
- While independent media was buzzing for weeks on the subject, state and Fidesz-friendly media did not say a word on it. When the topic became too present, they ran a campaign claiming that the concession winners were close to the opposition Socialist party. Seriously.
- While independent media was buzzing for weeks on the subject, state and Fidesz-friendly media did not say a word on it. When the topic became too present, they ran a campaign claiming that the concession winners were close to the opposition Socialist party. Seriously.
22/
Also they claimed that the cigs producer Phillip Morris was behind the ‘organized campaign’ against the new law, along with the obligatory ‘foreign forces want to weaken the government because it protects national interests’ punchline.
Also they claimed that the cigs producer Phillip Morris was behind the ‘organized campaign’ against the new law, along with the obligatory ‘foreign forces want to weaken the government because it protects national interests’ punchline.
23/
So that was the story of killing the livelihoods of many thousand small shop owners and their families in less than 3 months, and giving the monopolised and multiplied income to fidesz-faithfuls; or as @hadhazyakos called it "robbery by the state".
A drop in an ocean.
END
So that was the story of killing the livelihoods of many thousand small shop owners and their families in less than 3 months, and giving the monopolised and multiplied income to fidesz-faithfuls; or as @hadhazyakos called it "robbery by the state".
A drop in an ocean.
END
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