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Act XXVII of 2022
on control of the use of EU budgetary resources1
Parliament adopts the following Act to comply with the measures proposed in the framework
of the procedure under Regulation (EU) 2020/2092 of the European Parliament and of the
Council of 16 December 2020 on the establishment of an institutional system for more effective
control of the use of EU budgetary resources and on the general conditions for the protection
of the EU budget:
PART ONE
THE INTEGRITY AUTHORITY
I. CHAPTER 2
THE TASKS OF THE INTEGRITY AUTHORITY
1. Status of the Integrity Authority
1. § (1) The Integrity Authority (hereinafter referred to as the Authority) is an autonomous public
administration body.
(2)
2 The Authority, including its Chairperson, Vice-Chairpersons and all its staff, shall be
completely independent in the performance of its functions, subject only to the law, shall not be
instructed in the performance of its functions by any other person or body, shall carry out its
functions independently of any other body and shall be free from any influence by any other
institution, body, political party, association, society, legal person or natural person. The
Authority’s functions may be prescribed only by law.
(3) The Authority is based in Budapest.
2. § (1) The Authority shall be a central budgetary body with the status of a Chapter managing body.
(2) The Authority’s budget is a separate chapter in the central budget structure.
(3) The Authority prepares its own budget proposal and its report on the implementation of its
budget, which the Government submits to Parliament as part of the bill on the central budget
and its implementation, without any changes.
(4) The Authority’s budget may be reduced only with the consent of the Authority.
2. Performance of the Authority’s tasks
3. § The Authority shall act in any case where it considers that a body, including the
contractor, with competence and responsibility for the use or control of European Union funds has
not taken the necessary steps to prevent, detect and correct fraud, conflict of interest, corruption
and other irregularities or infringements affecting the efficient and effective management of the
European Union budget.
1 Published: 10 X 2022.
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2 Established by Act XLIV of 2022,
§ 66. Effective
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sound financial management or the protection of the financial interests of the European Union, or
there is a serious risk of this happening. In particular, the Authority shall have powers in
respect of planned, ongoing or past actions or projects which have received financial assistance
from the European Union, in whole or in part. The exclusion of a project from European Union
funding shall not affect the powers of the Authority where fraud, conflict of interest, corruption or
any other illegal or irregular situation affecting sound financial management of the European
Union budget or the protection of the financial interests of the European Union is involved or
where there is a serious risk of such a situation.
4. § (1)3 The Authority shall act on request, ex officio or on the basis of a notification or
complaint in order to perform its duties. Notwithstanding Section 1(2) of Act CLXV of 2013 on
Complaints and Notifications of Public Interest (hereinafter: Pkbtv.), a complaint may be lodged
even if its settlement is subject to another procedure. The Authority may act on the basis of any
information at its disposal in the exercise of its functions.
(2)
4 Anyone may lodge a complaint with the Authority in the event of an infringement or
irregularity affecting the Authority’s tasks. Notwithstanding Section 1(4) of the Pkbtv., a report or
complaint may also be submitted directly to the Authority, irrespective of which body is entitled to
act.
(3)
5 With the exception of paragraphs (1) and (2), the notification and complaint referred to in
paragraph (2) shall be submitted to the
Pkbtv. shall apply mutatis mutandis.
(4)
6 In order to receive notifications and complaints, the Authority operates a whistleblowing
platform ensuring the anonymity of whistleblowers and complainants, which provides for
confidential communication. Persons lodging a notification or complaint may also contact the
Authority by means other than the notification interface.
(5) The whistleblowing interface should be designed to protect the anonymity of whistleblowers
and complainants.
and that the identity of the person lodging the complaint or allegation is not disclosed to any
unauthorised person. The investigators of a report or complaint must keep confidential information
about the content of the report or complaint and the persons involved in the report or complaint
and may not share it with other bodies.
5. § (1) In the framework of its analytical and proposing tasks, the Authority shall
a) conducts an integrity risk assessment exercise,
b) produces an annual analytical integrity report,
c) issues recommendations on an annual and ad hoc basis.
(2) In the framework of its investigative tasks and powers, the Authority shall
a) may conduct an investigation,
b) may request the body responsible for monitoring the use of EU funds to initiate proceedings,
c) may initiate proceedings before another body,
d) can bring a lawsuit for default and other actions in court.
(3) In the framework of its administrative powers, the Authority shall
a) carries out official controls in the context of public contracts financed or planned to be
financed in whole or in part from EU funds,
b) the European Union-funded may impose information obligations in the context
of public procurement,
c) maintains a register of legal persons, sole proprietorships and sole traders (hereinafter
together referred to as “economic operators”) excluded from public procurement procedures in
connection with certain criminal offences.
(4)7 The Authority shall control European aid as provided for by law
3 Established by Act XLIV of 2022, § 67. Effective from 24 XI 2022.
4 Established by Act XLIV of 2022, § 67. Effective from 24 XI 2022.
5 Established by Act XLIV of 2022, § 67. Effective from 24 XI 2022.
6 Established by Act XLIV of 2022, § 67. Effective from 24 XI 2022.
7 Established by Act XLIV of 2022, § 68 (1). Effective from 24 XI 2022.
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conflict of interest declarations made by the auditing body and by employees of the Directorate for
Internal Audit and Integrity.
(5) The Authority shall perform the tasks laid down in the Act on Government Administration in the
following areas
Internal Audit and
in the context of the functioning of the Integrity Directorate.
(5a)8 The Directorate for Internal Audit and Integrity shall, upon request by the Authority,
provide the Authority without delay with access to the declarations of conflict of interest and
declarations of interests held by the Directorate for Internal Audit and Integrity and to all
documents necessary for the exercise of the Authority’s powers.
(6)9 In the performance of its duties, the Authority may, to the extent necessary for that purpose,
inspect
1. President, Vice President of the Gazdasági Versenyhivatal, member of the Competition Council,
2. member of the Media Council,
3. the President and Vice-President of the State Audit Office,
4. the Commissioner for Fundamental Rights and his deputy,
5. President and Vice President of the National Authority for Data Protection and Freedom of Information,
6. member of the Constitutional Court,
7. the Attorney General and the Deputy Attorney General,
8. President of the Budget Council,
9. President and Vice-President of the National Electoral Office,
10. the Governor of the Magyar Nemzeti Bank, its Vice-Chairmen and the members of the
Monetary Council as defined in Section 9 (4) c) of Article 9 of Act CXXXIX of 2013 on the
Magyar Nemzeti Bank, and the members of the Supervisory Board,
11. Member of the National Remembrance Committee,
12. Chairman, Vice-Chairman and member of the Council of the Public Procurement Authority,
13. a senior political leader who is not a Member of Parliament,
14. the municipal councillor and the mayor, and
15. the national minority self-government representative
and shall have the right to conduct an investigation procedure concerning the declaration
of assets and, on the basis of the results of such an investigation procedure, to initiate
proceedings concerning the declaration of assets in accordance with the rules applicable to the
categories of persons set out in points 1 to 15. The Authority shall be informed of the outcome of
the declaration of assets procedure.
(6a)10 In carrying out its tasks, the Authority shall
a) the president of the republic,
b) the Member of Parliament, the Nationality Speaker and the Speaker of the National Assembly,
c) the judge and
d) in relation to the declaration of assets of a senior political leader holding a mandate as a
Member of Parliament, is entitled to make the following declarations concerning the persons
specified in points (a) to (d) rules according to with a declaration of assets
in relation to the provisions of Article (a) and (b). The Authority shall
be informed of the outcome of the declaration of assets procedure.
(7)11 The Authority may initiate the control procedure under the Act CLII of 2007 on Certain
Obligations to Declare Assets and Liabilities (hereinafter: the Act on the Declaration of
Assets and Liabilities) by means of a notification pursuant to Section 14 (1) b) of the Act on
the Declaration of Assets and Liabilities (hereinafter: the Act on the Declaration of Assets
and Liabilities) against a person whose obligation to declare assets and liabilities is based on
his or her right to propose, decide or control EU funds. The Authority shall be informed of the
outcome of the control procedure under the Act, in particular of the initiation of an enquiry into
the increase in assets.
6. § The functions and powers of the Authority shall be without prejudice to the functions and powers
of any other body,
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8
Inserted by Act XLIV of 2022, § 68 (2). Effective: 24 XI 2022.
9 Act LVI of 2022 shall enter into force with the wording of § 17 (1).
10 Inserted by Act LVI of 2022, § 17 (2). Effective: 31.III.2023.
11 Inserted by: Act XLIV of 2022, § 68 (3). Effective from 31.III. 2023.
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their role in the management and control system.
7. § (1) The rules on conflict of interest laid down in Act C VII of 2019 on bodies with special
status and the status of their employees (hereinafter referred to as the “Act on the status of
bodies with special status and the status of their employees”), in particular the rules on conflict of
interest laid down in Act C VII of 2019 on the status of bodies with special status and the status
of their employees (hereinafter referred to as the “Act on the status of bodies with special
status”), shall apply to the civil servants of the Authority. The rules on the absence of a criminal
record pursuant to Article 24a of the Act, in particular with regard to the disqualification for
corruption-related offences, and the rules on the exclusion of persons with a criminal record
pursuant to Article 24a of the Act shall apply. the rules on the prohibition of co-employment and
conflict of interest under Article 51.
(2) The Authority shall take appropriate measures to prevent, detect and remedy situations
which may be considered a conflict of interest in the exercise of its powers and duties by any
person involved in the performance of those powers and duties.
(3) 12 For the purposes of paragraph (2), a conflict of interest shall exist in particular where the
impartial and objective exercise of the function is compromised for reasons of family, emotional
life, political sympathy, commitment or national affinity, economic interest or any other direct or
indirect personal interest.
3. Conclusion of agreements by the Authority 13
8. § (1)14 The Authority may conclude agreements with other public bodies and non-public bodies
concerning communication and the exchange of information and practical arrangements to
facilitate the exercise of its powers in the exercise of its functions. Such agreements may be
concluded only subject to the requirements of protection of personal data and other data.
(2) Without prejudice to the rules governing international judicial cooperation, the Authority
may conclude cooperation agreements with European Union authorities.
II. CHAPTER 2
THE AUTHORITY’S ANALYTICAL AND PROPOSALMAKING TASKS
4. The integrity risk assessment
9. § (1) The Authority shall conduct an integrity risk assessment exercise for the protection
of EU funds, which shall include an assessment of the integrity situation of the public
procurement system in Hungary.
(2) The integrity risk assessment identifies the integrity risks and systemic problems to be
addressed, the tools available to address them, the gaps in addressing such risks and problems, and
the solutions.
(3) The integrity risk assessment should be carried out in cooperation and consultation with
international organisations with an internationally recognised integrity assessment methodology,
including, where possible, the Organisation for Economic Cooperation and Development. The
Authority shall also take into account feedback from national and international NGOs monitoring
integrity in Hungary.
(4) The integrity risk assessment of the public procurement system is carried out according
to the internationally recognised methodology for the assessment of public procurement systems.
(5) The Authority will publish the methodology used in the integrity risk assessment on its
website.
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12 Amended by Act XLIV of 2022, § 84.1.
13 Established by Act XLIV of 2022, § 69. Effective: 24 XI 2022.
14 Established by Act XLIV of 2022, § 70. Effective: 24 XI 2022.
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10. § (1) The integrity risk assessment shall be the subject of a report providing a
comprehensive picture of the specific integrity risks related to the implementation of financial
assistance from the European Union budget, in particular in the area of public procurement.
(2) In the performance of its duties, the Authority shall pay particular attention to the report and shall
take into account
it when preparing the annual analytical integrity report. The report serves as a basis for the
development of integrity risk indicators.
5. The Annual Analytical Integrity Report
11. § The Authority shall produce an annual analytical integrity report, which shall include:
a)15 in connection with the use of EU funds, a full and comprehensive analysis of the
concentration of the public procurement market and the gap between the estimated value and
the contract value in public procurement procedures and its possible causes,
b)16 the effectiveness of the applicable rules in the fields within the Authority’s mission
assessing problems in implementing the rules, analysing enforcement and administrative practices
and identifying risk indicators,
c) an analysis of the use of framework agreements and the practice of contracts concluded under
them, including the use of framework agreements and individual contracts based on them
the distribution of the award of contracts between economic operators,
d) evaluating the existing control system for monitoring the use of EU funds to identify and
effectively prevent the risk of corruption, fraud and conflict of interest and to detect and remedy such
cases,
e) recommendations on the subject matter referred to in points (a) to (d), and
f) an assessment of how the bodies responsible for monitoring the use of EU funds have taken
into account previous reports and recommendations, in particular those under Article 15.
12. § (1) The annualanalyst integrity report a Authority for information will be sent to
to
Parliament.
(2) The annual analytical integrity report for the previous calendar year shall be made publicly
available on the Authority’s website by 30 June each year.
13. § The Government shall, within three months of the publication of the annual integrity report,
state in its reply to the Authority how it will deal with the findings of the annual integrity report .
6. Issuing a recommendation
14. § (1) The Authority shall issue recommendations to the bodies responsible for the use of
European Union funds or bodies with competence and responsibility in the area of control of the use
of European Union funds on the prevention, detection and remedying of fraud, corruption and
conflict of interest in connection with the implementation of grants from the European Union
budget, in particular those used in connection with public procurement procedures, which
affect or seriously jeopardise the sound financial management of the European Union
budget or the protection of the financial interests of the European Union.
(2) The Authority issues its recommendations in the annual analytical integrity report. The
Authority may also issue an ad hoc recommendation outside the annual analytical integrity
report.
15. § (1) The Authority may, on the basis of a notification, a complaint, of its own motion or at
the request of the contracting authority, prior to or during a public procurement procedure wholly
or partly financed from European Union funds, issue a recommendation to a specific
contracting authority requesting the contracting authority to award wholly or partly a specific
European Union
15 Amended by Act XLIV of 2022, § 84.2.
16 Amended by Act XLIV of 2022, § 84.3.
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in a public procurement procedure with EU funding or in a public procurement procedure with EU
funding in whole or in part for certain of its beneficiaries
a) use a specific type of procurement procedure,
b) use a specific procurement method,
c) refrain from using one or more types of public procurement or any practice related to
them,
d) refrain from using one or more specific procurement methods or practices, or
e) requires in the call for tenders the application of the provisions of the Public Procurement Act
2015.
CXLIII. act (for the purposes of this Part, hereinafter referred to as the “Kbt.”), the application of
one or more of the grounds for exclusion set out in Article 63(1),
f)17 stop any other infringing conduct.
(2. In the recommendations referred to in paragraph 1, the Authority shall specify in particular
a) the public procurement procedures or categories of public procurement procedures concerned,
b) the contracting authorities concerned,
c) setting expectations for contracting authorities,
d) the reasons for the recommendation and its relevance to the Authority’s mission.
(3) Where the contracting authority concerned by a recommendation under this Section does not
act in accordance with the recommendation issued by the Authority, it shall give detailed reasons in
writing for its decision to that effect and send the reasons to the Authority.
(4) In the event of an infringement by the contracting authority – in connection with the Authority’s
recommendation – the Authority may initiate proceedings before the competent body or court, in
particular in the case of a public procurement infringement, it may initiate proceedings before the
Public Procurement
Arbitration Committee procedure. In accordance with the applicable procedural rules, the Authority
may request interim measures.
16. § (1)18 The Authority may, on the basis of a notification, a complaint, ex officio or at the request
of the contracting authority, examine the applicability of the exclusion grounds pursuant to Article
62 (1) and (2) of the Public Procurement Act or, where the contracting authority has provided for
it in the procedure, the exclusion grounds pursuant to Article 63 (1) of the Public Procurement
Act to a specific economic operator in the course of the evaluation of tenders or requests to
participate in a public procurement procedure financed or intended to be financed by European
Union funds.
(2)
19 In the case referred to in paragraph 1, the Authority shall examine the applicability of
one or more of the grounds for exclusion in the public procurement procedure implemented or
planned to be implemented with European Union funding. The contracting authority shall
suspend the procurement procedure for the duration of the examination. The Authority makes a
recommendation where the incorrect application of exclusion criteria other than those relating to
fraud, corruption or conduct linked to a criminal organisation could jeopardise the financial
interests of the European Union.
(3) The Authority shall, where requested by a contracting authority pursuant to paragraph 1, either
send the tender to the contracting authority within 15 days of the request or inform the contracting
authority that it will not make a tender in connection with its functions.
(4) The Chairperson of the Authority may, in duly justified cases, extend the time limit referred
to in paragraph 3 by a maximum of 15 days.
(5) If the contracting authority acts contrary to the Authority’s recommendation, it must provide
detailed reasons within 15 days
sends to the Authority. The contracting authority shall publish the reasons in the summary of the
evaluation of applications and tenders. In the event of a breach of public procurement law, the
Authority shall apply Article 152.
§ (1) point o) may initiate the procedure of the Public Procurement Arbitration Committee.
III. CHAPTER 2
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17 Established by Act XLIV of 2022,
§ 71. Effective
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18 Amended by Act XLIV of 2022,
§ 84.
4.
19 Amended by Act XLIV of 2022, No 84, § 5.
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7. The Authority’s investigation procedure
17. § (1) The Authority shall conduct an investigation in order to identify circumstances
that adversely affect or may adversely affect the implementation of EU financial assistance.
(2) The Authority shall notify the person or agent concerned of the opening of the investigation
procedure, as well as the Minister responsible for the use of EU funds, the head of the body
responsible for auditing European grants and, in the case of an investigation relating to a
procurement procedure involving EU funds, the body responsible for ex ante and in-process
controls under the legislation governing the use of EU funds. Following the notification, the person
or entity concerned by the investigation procedure shall inform the Authority without delay of any
pending appeal or judicial procedure by the ACPC relating to the investigation procedure.
(3) The Authority may not exercise its powers if the alleged infringement in relation to
which it intends to act is the subject of an appeal procedure or judicial proceedings before the
Public Procurement Arbitration Committee.
(4) The Authority’s investigative procedure under this Chapter does not constitute an
administrative procedure, and no administrative proceedings may be brought in relation to its
activities under this Chapter.
18. § (1) The Authority shall assess all available information relevant to its tasks in the
investigation procedure. In order to carry out its tasks, the Authority may request any person or
organisation concerned by the case in question to supply information relevant to its functions and
powers.
(2)
20 The Authority may request a body competent to carry out acts of verification on its behalf
in the field of control of the use of European Union funds, the requested body shall act in
accordance with the rules applicable to its verification. The provisions of Article 25 shall apply
mutatis mutandis to the Authority’s request.
(3) In its investigative procedure under this Chapter, the Authority shall, as an act of evidence, as
defined by law21
a) have access to all the data held by the controller under investigation which may be relevant
to the case under investigation, to make copies thereof and to inspect or request copies of all
such documents, including those stored on an electronic storage medium,
b)22 may request written and oral explanations from the controller under investigation or any
employee of the controller under investigation,
c) 23 may request written or oral information from any organisation or person that may be related
to the case under investigation, and may also request a copy of any data or documents, including
documents stored on an electronic medium, t h a t m a y be related to the case under
investigation.
(4) The Authority may process, to the extent necessary for the conduct of its proceedings, all
personal data and data covered by the obligation of professional secrecy and confidentiality
protected by law which are relevant to the investigation and the processing of which is necessary
for the effective conduct of the investigation.
(5) The Authority’s civil servant may, in accordance with the provisions of the Act on the
Protection of Classified Information, access, extract and copy classified information necessary
for the conduct of an investigation and may keep the classified information in his or her possession.
(6) The Authority’s request for data under paragraph 1 shall be addressed to the controller under
investigation or to the
20 Amended by Act XLIV of 2022, No 84, § 6.
21 Amended by Act XLIV of 2022, No 84, § 7.
22 Amended by Act XLIV of 2022, No 84, § 8.
23 Amended by Act XLIV of 2022, § 84.9.
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other body or person concerned by the act must comply within a time limit set by the Authority,
which shall not exceed 60 days. The time limit set by the Authority shall not be less than fifteen
days in the case referred to in paragraph 3(b) and (c).
(7) The information referred to in paragraph 3(b) and (c) may be refused by the person requested
if
a) a relative within the meaning of the Civil Code Act of the person concerned by the Authority’s
investigation,
b) would, in the course of the disclosure, accuse you or a relative under the Civil Code Act of
having committed a criminal offence, on a related matter.
(8) The Authority should have access to the information necessary to perform its public
procurement tasks when requested to do so. At the request of the Authority, contracting authorities
whose procedures are subject to an inspection by the Authority must make available to the
Authority all documents relating to the preparation and conduct of the procurement procedure and the
performance of the contract. The Authority is also entitled to request information and documents
relating to public procurement procedures which are still in preparation or in progress.
(9) Where the Authority’s investigation concerns a procurement procedure which is
subject to a public procurement control obligation under the legislation governing the use of EU
funds, the Authority is entitled to request from the body controlling the use of EU funds any
information at its disposal as a result of the control. The EU control body shall provide the
Authority with the requested information within 8 days.
(10) 24 The Authority may, in the procedure under this Chapter, through a call for information and public
may not carry out any act of an evidentiary nature other than the assessment of information on its
own initiative, but may request the body competent to do so, which shall inform the Authority
without delay of the outcome of its proceedings, including the fact-finding process.
(11) The Authority shall delete the data it processes without delay if the purpose of the processing
no longer serves the Authority.
(12) Documents and physical evidence obtained during the Authority’s investigation are not in the public
domain.
19. § (1) In the course of its procedure, the Authority shall evaluate the information obtained by issuing a
report.
(2) Before issuing the report, the Authority may give the person or body concerned the
opportunity to comment on the draft report by providing a reasonable period of time.
(3) The Authority may make recommendations to the person or entity under investigation with a
time limit in order to promote the objectives set out in Article 3.
(4) The inspected person or entity shall inform the Authority of the implementation of
paragraph 3 or of its disagreement with the recommendations and the reasons for disagreement.
(5) If the Authority finds irregularities in the use of EU funds,
or does not consider the implementation of its proposals for action to be adequate, may, under this
Act, initiate proceedings before the competent authority or court .
8. Certain tasks and powers of public authorities in relation to public
procurement involving EU funding
20. § (1) The Authority shall conduct its investigation pursuant to Paragraph (1) of Article 17 in
the context of public procurements involving European Union funds within the framework of
the official control pursuant to Act CL of 2016 on General Administrative Procedure (hereinafter:
the General Administrative Procedure Act).
(2) In proceedings under this Chapter, the Authority shall act as an administrative authority.
21. § (1) If the Authority, in the course of an official inspection, finds fraud, corruption, conflict of
interest or
24 Established by Act XLIV of 2022, § 72. Effective from 24.11.20 22.
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irregularities or suspected serious irregularities affecting the EU budget
the sound financial management of EU funds or the financial interests of the European Union, or
where there is a risk thereof, may issue an order suspending the procurement procedure involving
EU funds for a period not exceeding two months. In the suspension order, the Authority shall set
out the facts and legal assessment which justify the suspicion that the acts referred to in this
paragraph have been committed.
(2) The order may be challenged within 3 days in an administrative non-adversarial
procedure, and the Authority shall forward the application to the court within 3 days of its
receipt. The court shall decide on the application within 30 days.
22. § (1) The Authority may by decision require specific contracting authorities to inform the
Authority of the opening of a procurement procedure involving European Union funds in specific
cases. The Authority shall send the decision to the Minister responsible for European Union grants
for information.
(2) In the decision referred to in paragraph 1, the Authority shall specify the sectors,
procurement subject matters and thresholds for which it requests information, based on the risk
of fraud, conflict of interest, corruption or other infringement or irregularity in relation to each
procurement.
(3) The Authority is required to define and publish those risk indicators in advance,
the case law of courts, public procurement tribunals or other public authorities, or the audit
experience of the European Commission or national audit bodies, on the basis of which it
requests information under this §.
23. § Failure to comply with the obligation pursuant to paragraph (1) of Article 21 and paragraph (1)
of Article 22
the Authority imposes an administrative fine on the contracting authority. The amount of the fine
shall constitute the Authority’s own revenue.
9. Initiation of proceedings
24. § (1) The Authority shall notify the competent authority or body, including the European
Anti-Fraud Office and, with simultaneous transmission of the notification to the public prosecutor’s
office, the European Public Prosecutor’s Office, if it suspects fraud, conflict of interest,
corruption or any other infringement or irregularity. The Authority’s civil servant is subject to
the reporting obligation under Article 376(2) of Act XC of 2017 on Criminal Procedure.
(2) Where the Authority considers that the evidence in its possession justifies the opening of a
competition proceeding, it shall without delay transmit the evidence at its disposal to the
Authority, in compliance with Article 4(2)(b) of Directive (EU) 2019/1 of the European Parliament
and of the Council of 11 December 2018 on the strengthening of the position of the competition
authorities of the Member States with regard to the effective enforcement of competition law and
the proper functioning of the internal market.
(3) If the Authority’s investigation reveals a suspected irregularity, it has the right to initiate an
irregularity procedure under the provisions of the legislation governing the use of EU funds
with the managing authority responsible or, in the case of a project financed by the Recovery and
Resilience Instrument, with the national authority.
(4) 25 The Authority may, pursuant to point o) of Paragraph (1) of Section 152 of the Public
Procurement Act, initiate the
Arbitration Committee, if it is not provided for in the Public Procurement Act or the
conduct or omission contrary to a regulation made under the authority of the Act comes to its
attention.
25. § (1) In order to carry out its supervisory or control tasks, the Authority may call upon the
competent authorities responsible for the control of the use of European Union funds
25 Established by Act XLIV of 2022, § 73. Effective from 24 XI 2022.
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The competent body shall, on the basis of a request from the Authority, initiate the procedure ex
officio.
(2) The Authority’s request may be rejected by the body responsible for monitoring the use of EU
funds only if compliance with it would be contrary to the law.
(3) The Authority shall have the status of a public prosecutor in proceedings under this Section
which fall within the scope of the Public Proceedings Act.
(4) The Authority may make statements, comments and request information at any time during
the procedure of the body with powers and responsibilities in the field of control of the use of
European Union funds not covered by the Public Act.
(5) 26 Responsible for monitoring the use of EU funds
must cooperate with the Authority, in which context it must inform the Authority without delay of
the start of its proceedings and of the outcome of its proceedings.
26. §
27 The Authority may call upon the person concerned to take proceedings pursuant to
Section 15(2) of the General Act on the
supervisory authority, and may bring an action for failure to act before a court in accordance
with the provisions of Act I of 2017 on the Code of Administrative Procedure, if the authority
with the duties and powers has failed to fulfil its procedural obligations under Paragraph (2) of
Article 18 and Paragraph (1) of Article 25.
27. § (1) The Authority may challenge in administrative proceedings any decision of a public
procurement arbitration board and any other decision of a public authority relating to a public
procurement procedure involving European Union aid. The Authority may in administrative
proceedings in particular seek immediate legal remedies under Chapter IX of Act I of 2017 on the
Code of Administrative Procedure.
(2) Administrative proceedings shall be brought by the Authority
a) in the case of a decision of a public procurement arbitration committee pursuant to paragraph
(1) – notwithstanding paragraph (2) of Article 170 of the Public Procurement Act – within 90
days of the publication of the decision,
b) in the case of other decisions of public authorities, within 90 days from the date of
becoming aware of the decision, in accordance with the provisions of Act I of 2017 on
Administrative Procedure.
27/A §28 The Authority shall be responsible for the exercise of public authority or the
management of public property
in the case of a priority offence, you can file a motion for reconsideration under the Criminal
Procedure Act and a repeated motion for reconsideration.
IV. CHAPTER 2
THE REGISTER OF ECONOMIC OPERATORS EXCLUDED FROM THE
PROCUREMENT PROCEDURE
10. Content and purpose of the register
28. § (1)29 The Authority shall record the economic operator in the register of economic
operators excluded from public procurement procedures (hereinafter referred to as “the register”),
with the data content specified in paragraph (1) of Article 31, if a court has issued a final
and conclusive decision finding that the economic operator or a member of the managing or
supervisory board of the economic operator, the managing director of the economic operator
or the beneficial owner within the meaning of Section 38, Article 3 of Act LIII of 2017 on the
Prevention and Combating of Money Laundering and Terrorist Financing, is a person who is a
person who is a person referred to in Section 62.
(1) has committed an offence within the meaning of paragraph 1(a)(aa) to (aa).
(2) The data referred to in points a) and d) of paragraph (1) of Article 31 shall be provided in
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accordance with Article 62 (1) paragraph a) and a) aa)-ag)
26 Inserted by Act XLIV of 2022,
§ 74. Effective: 24 XI 2022.
27 Established by Act XLIV of 2022,
§ 75. Effective from 24 XI 2022.
28 Inserted by Act XLIV of 2022,
§ 76. Effective: 24 XI 2022.
29 Established by Act XLIV of 2022,
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shall be published on the electronic public procurement system operated by the Minister responsible
for public procurement for the purpose of checking the grounds for exclusion under point (a).
(3) In the course of the registration, the Authority shall establish, with regard to the economic operator,
the following.
§ 62 (1) a) aa) to a) a), which may not exceed four years from the date on which the decision on
the substance of the case pursuant to paragraph (1) becomes final.
11. Record keeping and self-cleaning
29. § (1) The Authority shall keep the register in its official capacity.
(2) The Authority shall carry out the registration procedure ex officio. Where the Authority
becomes aware of information giving rise to the opening of a registration procedure on the basis of
a complaint or a notification, it shall contact the competent authority for the transmission of the
information necessary for registration.
(3) The Authority shall notify the economic operator of the opening of the registration procedure
and at the same time invite it to submit its observations and self-cleaning measures within 8 days
of the notification.
(4) The economic operator shall provide a statement of the measures taken to self-cleanse and
evidence thereof, which the Authority shall, upon receipt, consider
evaluate within 20 days to decide whether the operator should be included in the
register. In its assessment, the Authority must take into account the seriousness and the specific
circumstances of the offence.
(5) In order to prove its reliability, the economic operator subject to the exclusion must
demonstrate in particular that
a) has compensated the damage caused by the offence, to the extent accepted by the victim,
or has undertaken to do so within a specified period,
b) actively cooperated with the competent authorities to clarify the facts and circumstances of
the case in a comprehensive manner, and
c) take technical, organisational and personnel measures there which are suitable to
prevent further criminal offences.
30. § (1) During the period of exclusion established by the Authority, an economic operator may
submit a self-clearance application to the Authority for removal from the register.
(2) The Authority shall consider the application on the basis of the criteria set out in Article 29(4)
and (5). Where the Authority grants the application under paragraph 1, it shall remove the
economic operator from the register.
(3) If the Authority rejects the application, the economic operator may reapply for the same
ground for exclusion if it wishes to demonstrate its reliability by taking substantive action
following the rejection of its previous application .
12. The data recorded
31. § (1) The register shall contain
a) the name, tax number and registered office of the economic operator,
b) the natural person identification data of the person referred to in paragraph (1) of Article 28,
c) with regard to the offence under subparagraphs aa) to a) of paragraph (1) a) of Article 62 of
the Public Procurement Act, the name and classification of the offence, the name of the court
that issued the final decision on the case, the number, date and the date of the decision becoming
final,
d) the period of exclusion from the procurement procedure, and
e) the date of registration.
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(2)
30 The Authority
a) – with the exception of points (b) and (c) – the natural person’s identity data of the
managing director, member of the supervisory board, company secretary of the economic operator
from the business information system,
b) the natural person identification data of the self-employed person from the register of
self-employed persons,
c) identification of the beneficial owner of the economic operator by financial and other service
providers
the natural person’s identification data and address data available in the de facto ownership
register as defined in Article 3, Section 14, point 14 of Act XLIII of 2021 on the Creation and
Operation of the Data Reporting Background Related to the Performance of its Functions
(hereinafter referred to as the “de facto ownership register”) from the de facto ownership register,
d) in respect of a person referred to in points (a) to (c), the data referred to in paragraph 1(c) in
the
from the criminal records system via a
direct data link.
(3) The Authority shall, by means of the direct data link referred to in paragraph 2(d), make
available to the
is entitled to receive data pursuant to Article 67 (1) (b) of Act XLVII of 2009 on the registration system,
the registration of judgments handed down by the courts of the Member States of the European
Union against Hungarian citizens and the registration of biometric data in criminal and law
enforcement matters, if31
a) in his or her request, the surname and forename of the person concerned, the place and date
of birth and the mother’s maiden name and surname, and
b) in relation to the person in the data request in accordance with Article 62 (1) a) aa)-ag) of the
Public Procurement Act
the offences defined in points (a) to (b) were committed in the four
has been convicted by a court in a final and conclusive decision within one year and the person
concerned has not yet been exempted from the adverse consequences of the criminal record.
(4) The Authority
a) – with the exception of point (c), the name, tax number, registered office and the fact of the
termination of the business from the business information system,
b) information from the company information system on the criminal measure taken against
the company,
c) the name, tax number, registered office of the self-employed person, and details of the
cessation of his/her business activity from the register of self-employed persons
via a direct data link.
(5) Once the data of the economic operator referred to in paragraph 1 have been recorded in the
register, the Authority shall delete the data received.
(6) The Authority shall remove the economic operator from the register ex officio at the end of
the period set by the Authority. The Authority shall remove an economic operator from the
register ex officio if the economic operator has ceased to exist or, in the case of a sole proprietor,
if the right to carry out the entrepreneurial activity has ceased.
(7) The data processed in the register – not including the publication pursuant to paragraph
(2) of Article 28 – shall be made available only to the
a) the court to conduct the proceedings pending before it,
b) the prosecution and investigative authorities to prosecute,
c) the successful completion of proceedings pending before a body other than a body referred to
in points (a) and (b) which is entitled to access the data under the law
for the purpose of, and upon request.
V. CHAPTER 2
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30 Established by Act XLIV of 2022,
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13. The Chair and Vice-Chairs of the Authority
32. § (1) The Authority shall be headed by the Chairperson, who shall work in cooperation
with the two Vice-Chairpersons of the Authority’s Management Board.
(2) The Chairperson shall exercise the functions and powers of the Authority in accordance
with the decision of the Management Board of the Authority.
33. § (1) The President of the Authority shall
a) manages the Authority’s working organisation and lays down its organisation, staffing and
publication arrangements in its rules of procedure,
b) represents the Authority,
c) exercise the powers conferred on the head of the office by the Constitution or other law,
d) a Authority Budget for the budget is supplied by all
tasks of the Authority, which the
the law on public finances refers to the powers of the head of the body managing the chapter.
(2) The powers referred to in paragraph 1 shall be exercised by the Chairperson of the Authority on his or
her own initiative.
14. Management Board of the Authority
34. § (1) The Authority’s main decision-making body shall be the Management Board of the
Authority, composed of the Chairperson and two Vice-Chairpersons of the Authority.
(2) The Management Board of the Authority shall, in the exercise of its functions and powers,
directly
is taken as a body, by majority decision.
(3) The Board of the Authority reports annually to Parliament on its activities. The report shall
also be sent to the EuropeanCommission.
15. Status of the President and the Vice-Presidents
35. § (1) The President and the Deputy Presidents of the Authority shall be appointed by the
President of the Republic for a term of six years on the proposal of the President of the State Audit
Office of Hungary.
(2) The President of the State Audit Office of Hungary shall submit his proposal to the
from among the following persons.
(3) The Chairperson and the Vice-Chairpersons of the Authority shall perform their duties within
the framework of a civil service contract, and their legal relationship shall be governed by the
provisions of the CCP, with the exceptions provided for in this Act.
36. § A person may be appointed as Chairperson and Vice-Chairperson of the Authority who, in
addition to the requirements laid down in the Cüt.
a) have a university degree in law, economics or finance,
b) is undoubtedly independent,
c) have extensive professional experience or academic work in legal or financial fields related
to public procurement and the fight against corruption, and an international background and
experience, including in EU matters,
d) in the 5 years preceding the nomination, has not held a position pursuant to Section 42 (1) (a)
or (b) of
office, mandate,
e) made a declaration of conflict of interest pursuant to § 43, and
f) made a declaration of assets pursuant to paragraph (1) of Article 44.
37. § (1) The Committee on the Selection of the Members of the Management Board of the
Authority (hereinafter referred to as the “Committee on the Selection of the Members of the
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Management Board”) shall call for an open and public call for applications for the office of
Chairperson and Vice-Chairperson of the Authority.
(2) Applications are only valid if they are received from at least twice the number of applicants
for the posts to be filled. In the event of an invalid application, the competition will be reopened.
On
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a re-opened competition is only valid if it receives applications from at least twice the number of
applicants for the posts to be filled.
(3) From among the candidates shortlisted for the post of Chairperson and Vice-Chairperson of
the Authority, the Eligibility Committee shall decide on the list of persons who are considered
suitable for the post of Chairperson and Vice-Chairperson of the Authority, taking into account
their professional merit, skills and qualifications.
(4) In its opinion, the Committee may, without prejudice to the nomination and appointment
procedure, assist in an informed decision on the nomination of the Chairperson and ViceChairperson of the Authority, other than by determining their suitability.
38. § (1) The monthly salary of the President of the Authority shall be 80% of the monthly
salary pursuant to Article 149 (1) of Act CXXXIX of 2013 on the Magyar Nemzeti Bank.
(2) The monthly salary of the Vice-Chairman of the Authority shall be 80% of the monthly
salary pursuant to Article 149 (2) of Act CXXXIX of 2013 on the Magyar Nemzeti Bank.
(3) The Chairman of the Authority is entitled to the same benefits as the Minister, and the
Deputy Chairman to the same benefits as the Secretary of State for Public Administration.
(4) The Chairperson of the Authority shall be entitled to twenty working days of additional
executive leave per calendar year, and the Vice-Chairperson to fifteen working days of additional
executive leave per calendar year.
39. § (1) The term of office of the Chairperson and the Deputy Chairperson of the Authority shall be
terminated
a) at the end of the term of appointment,
b) with his death,
c) by resigning,
d)32 in the case referred to in paragraph 7.
e)33
(2) The President and Deputy President of the Authority may resign at any time by written
declaration addressed to the President of the State Audit Office. In the event of resignation, the
period of resignation shall be 60 days from the date of submission of the resignation. No declaration
of acceptance is required for the resignation to be valid. No reasons need be given for
resignation.
(3) The termination of the term of office of the Chairperson and Deputy Chairperson of the
Authority in the event of resignation shall be
The President of the Republic shall determine the Court of Auditors on the basis of a proposal from
the President of the Court of Auditors.
(4) 34 The President of the State Audit Office may bring an administrative action before a court for
the termination of the employment of the President or the Deputy President of the Authority if
a) the Fitness Committee initiates the termination of the employment of the Chairperson or
Deputy Chairperson of the Authority pursuant to Section 43(3), Section 43(7) or Section 44(7),
or
b) the conditions for his appointment are no longer met.
(5) 35 The President of the State Audit Office of the Republic of Estonia shall simultaneously
send the statement of claim referred to in paragraph (4) to the President or the Deputy President of
the Authority.
(6) 36 In proceedings under paragraph (4), the court shall proceed in accordance with the
rules of civil service proceedings, except that the proceedings shall be brought against the
President or the Deputy President of the Authority and the Metropolitan Court shall have
exclusive jurisdiction. The court shall decide on the action within thirty days.
(7) 37 If the court finds that the action brought by the President of the State Audit Office under
paragraph (4) is well-founded, the court shall, by decision, terminate the employment of the
President or the Deputy President of the Authority. The decision of the court shall be subject to
appeal.
(8) 38
32 Established by Act XLIV of 2022, § 79 (1). Effective: 24 XI 2022.
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§ 86 a).
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34 Established by Act XLIV of 2022,
§ 79 (2). Effective: 24 XI 2022.
35 Established by Act XLIV of 2022,
§ 79 (2). Effective: 24 XI 2022.
36 Established by Act XLIV of 2022,
§ 79 (2). Effective: 24 XI 2022.
37 Established by Act XLIV of 2022,
§ 79 (2). Effective from 24 XI 2022.
38 Repealed by Act XLIV of 2022,
§ 86 b).
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40. § (1) In the event of termination of the employment of the Chairperson or Deputy Chairperson
of the Authority pursuant to point (a) of paragraph (1) of Article 39, the Chairperson or Deputy
Chairperson shall be entitled to severance pay equal to twice the monthly salary at the time of
termination.
(2) The Chairperson and the Vice-Chairperson of the Authority shall, for a period of one year after
the termination of their term of office
a) may not enter into an employment relationship or any other employment relationship with a
company, and
b) may not acquire shares in a company,
whose right or legitimate interest is affected by an individual decision of the Authority during its term of office.
(3) With regard to the prohibition of employment under paragraph 2, the Chairperson or
the Deputy Chairperson of the Authority shall be entitled, upon termination of his or her duties, to
an amount corresponding to his or her net income, after deduction of personal income tax and
contributions, from the Authority for the preceding 6 months, or for the preceding 12 months if he
or she has held office for three years or more, and to be charged to the budget of the Authority, if
he or she has held office for at least one year but less than three years.
(4)39 The President of the State Audit Office and the Fitness Committee shall be responsible for
ensuring that, in the event of the termination of the office of the President or Deputy President of
the Authority pursuant to Section 39(1)(a), the procedure for the appointment of a new President or
Deputy President of the Authority is carried out until the termination of the office of the President
or Deputy President of the Authority pursuant to Section 39(1)(a).
41. § Decisions of the President of the Republic under this Chapter shall not require the
countersignature of a member of the Government .
16. Conflicts of interest of the President and Vice-Presidents
42. § (1) The Chairperson and Deputy Chairperson of the Authority shall not be
a)40 president of the republic, prime minister, mini ster, political director of the prime
minister, government commissioner, prime minister’s commissioner, prime minister’s deputy,
ministerial commissioner, state secretary, state secretary for public administration, deputy state
secretary, head of the government office of the capital and the county, mayor, deputy mayor,
mayor, deputy mayor, local or county councillor, president and vice-president of the county
assembly, member of the European Parliament,
b) a member of a political party, party foundation or a person in an employment relationship
with a political party or party foundation, including any activity carried out on a voluntary basis
or for remuneration,
c) executive officer, member of the management board, member of the supervisory board,
managing director of a company.
(2) The Chairperson and Vice-Chairperson of the Authority shall not hold any ownership interest
in a company.
(3) The Chairperson and the Vice-Chairperson of the Authority shall not engage in any gainful
occupation other than that of a researcher, university lecturer, college lecturer, artist, editor,
proofreader or editor, or in any other protected intellectual activity, nor shall they accept any
remuneration for any other activity, except for the activities of a researcher, lecturer, artist,
proofreader or editor, or in the context of a protected intellectual activity or in the context of a
foster-parent relationship.
(4) The Chairperson and Vice-Chairperson of the Authority shall not engage in party political
activities on behalf of a party
or in the interests of the public.
43. § (1) The person proposed as the Chairman and Vice-Chairman of the Authority
shall declare to the Fitness Committee that he/she has no conflict of interest under this Act.
(2) The truthfulness of the declaration and, following appointment, the conflict of interest
39 Inserted by Act XLIV of 2022, § 80. Effective: 24 XI 2022.
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is checked annually by the Alkali Commission.
(3) 41 If the person proposed to be the Chairman or Deputy Chairman of the Authority has
misrepresented any material fact or information in the declaration, the Committee on Fitness shall
initiate a motion to the President of the State Audit Office to terminate the office of the Chairman
or Deputy Chairman of the Authority.
(4) The declaration shall be filed with the Authority after the termination of the term of office of
the Chairperson and the Vice-Chairperson of the Authority.
must be kept for five years.
(5) If a conflict of interest arises in relation to the Chairperson and Vice-Chairperson of the
Authority after their appointment, they shall declare it to the Fitness Committee within 15 days of
its occurrence. The Chairperson and the Vice-Chairperson of the Authority shall remove any
conflict of interest arising after their appointment within 30 days of its occurrence and shall
declare it to the Fitness Committee.
(6) Where a conflict of interest in relation to the Chairperson and Vice-Chairperson of the
Authority is disclosed by the Fitness Committee after their appointment, the Fitness Committee shall
request the Chairperson or Vice-Chairperson of the Authority to remove the conflict of interest within
30 days of its disclosure.
(7) 42 If the Chairperson or Vice-Chairperson of the Authority declares a conflict of interest at the time
it arises
within 30 days of the date of the conflict of interest, or if the conflict of interest has existed for more
than 30 days, the Alkali Massagnii Committee must initiate the termination of the employment of
the President or the Deputy President of the Authority with the President of the State Audit Office.
17. Obligation for the President and Vice-Presidents to make a declaration of
assets
44. § (1) The person proposed to be the Chairperson and the Vice-Chairperson of the Authority
shall make a declaration of assets and liabilities prior to his/her appointment.
(2) The Chair and Vice-Chair of the Authority shall make an annual declaration of assets and liabilities.
(3) The declaration of assets pursuant to paragraphs (1) and (2) shall be governed by the rules
on the declaration of assets of Members of Parliament, with the exceptions provided for in this
Act.
(4) The declaration of the assets of the person proposed as Chairperson and Vice-Chairperson of
the Authority and of the Chairperson and Vice-Chairperson of the Authority shall be kept by the
Fitness Committee and shall be kept until the date specified in paragraph 6.
(5) The proposed Chairperson and Vice-Chairperson of the Authority, as well as the Chairperson
and Vice-Chairperson of the Authority, shall be subject to an annual verification of their
declaration of good character by the Fitness Committee, which shall draw up a report on the
results. The report containing the results of the verification shall be kept for five years.
(6) A public, full-page copy of the proposed Chairperson and Vice-Chairperson of the Authority,
as well as the Chairperson and Vice-Chairperson of the Authority, shall be published by the Fitness
Committee on the Authority’s website without delay. The declaration of assets and liabilities may be
removed from the website after five years from the date of termination of the Chairperson’s or ViceChairperson’s mandate.
(7) 43 If, in the course of the audit pursuant to paragraph (5), the Fitness Committee finds that the
person proposed as the Chairman and Vice-Chairman of the Authority, as well as the Chairman or
Vice-Chairman of the Authority, has untruthfully disclosed material facts or data in the
declaration of assets, the Fitness Committee shall initiate the termination of the employment of the
Chairman or Vice-Chairman of the Authority with the President of the State Audit Office.
18. Employment rules for staff of the Authority
41 Amended by Act XLIV of 2022, No 84, § 12.
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42 Amended by Act XLIV of 2022,
§ 84.
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43 Amended by Act XLIV of 2022,
§ 84.
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45. § (1) The President of the Authority shall determine
a) the number of staff required to carry out the Authority’s tasks, the establishment plan and
the grading of posts,
b) the amount of resources needed to carry out the Authority’s tasks.
(2) The Deputy Chairperson of the Authority, designated in the Authority’s rules of organisation
and operation, shall take the measures of an employer not provided for in this Act in connection
with the civil service status of the Chairperson of the Authority.
46. § (1) The President of the Authority shall decide on the remuneration policy of the Authority
principles and fringe benefits.
(2) The Authority and the Authority’s civil servants shall agree on the civil servant’s salary,
allowances, the amount of additional leave, daily working hours and general working hours in a
public service contract.
(3) The Authority is not covered by the reporting of data on administrative personnel
activities.
(4) 44 With the exception of the President and the Deputy President of the Authority, the civil
servants of the Authority are required to make a declaration of assets pursuant to Section 3 (1) of
the Act on the Declaration of Assets and Liabilities.
47. § (1) The Authority’s civil servants shall be obliged to disclose to the Authority any
information coming to their knowledge in the course of their duties.
to protect all legally protected secrets, in particular business secrets.
(2) The Authority’s civil servants are required to preserve as professional secrets any data, facts
or circumstances of which they become aware in connection with the performance of the Authority’s
duties and which the Authority is not required by law to disclose to the public.
(3) Officials of the Authority shall not disclose or use any legally protected secret, in particular
business and trade secrets, of which they become aware, without legitimate grounds. This Article
shall be without prejudice to the Authority’s statutory obligations to provide information and
disclosure.
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44 Inserted by Act XLIV of 2022, § 81. Effective: 24 XI 2022. Amended by: Act XLIV of 2022, § 84, 15.
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PART TWO
THE ANTI-CORRUPTION TASK FORCE
VI. CHAPTER 2
THE FUNCTIONING OF THE ANTI-CORRUPTION TASK
FORCE
19. Status of the Anti-Corruption Task Force
48. § (1) An Anti-Corruption Working Group (hereinafter referred to as the Working Group)
shall operate alongside the Authority. The Working Group shall be a body independent of
the Authority with analytical, proposing, opinion-forming and decision-forming functions. The
Task Force shall be open-ended. The Working Group shall not interfere in the activities of the
Authority.
(2) The activities of the Working Party shall be without prejudice to the tasks and powers of other
bodies. In particular, the Working Party shall not be mandated to establish individual obligations
or responsibilities.
49. § Non-governmental actors active in the fight against corruption should be involved
in the activities of the Task Force, ensuring their full, organised and effective participation.
20. Tasks of the Anti-Corruption Task Force
50. § (1) The tasks of the Working Group shall be
a) review existing anti-corruption measures and develop proposals
(aa) corrupt practices within the meaning of Article 4(2) of Directive (EU) 2017/1371 of the
European Parliament and of the Council of 5 July 2017 on combating fraud affecting the financial
interests of the Union by criminal law,
ab) offences under Chapter III of the United Nations Convention against Corruption,
(ac) the offences provided for in Chapter XXVII of Act C of 2012 on the Criminal Code, as
well as other practices, in particular nepotism, favouritism and the phenomenon of revolving doors
between the public and private sectors
detection, investigation, prosecution and sanctioning,
b) Proposing measures to improve the prevention and detection of corruption, including
in particular measures to make effective use of all available corruption prevention and detection
tools, and measures to improve the flow of information between public administrative and control
authorities and investigative authorities,
c) on the basis of the tasks set out in points (a) and (b), independently of the Authority’s
annual analytical integrity report, to produce an annual report analysing risks and trends in
corruption and corruption practices, proposing effective countermeasures and best practices to
prevent, detect and sanction corruption risks and types of corruption, and assessing their effective
implementation, as well as how its previous proposals have been monitored and
implemented by relevant legislative and non-legislative initiatives and government
programmes.
(2) The Working Party shall take into account
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a) on the financial rules applicable to the general budget of the European Union, amending
Council Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No
1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No
Article 61(1) of Regulation (EU, Euratom) No (EU, Euratom) 2018/1046 of the European Parliament
and of the Council of 18 July 2018 amending Regulations (EU) No 223/2014 and (EU, Euratom)
No 283/2014 and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012
and
b) Article 24 of Directive 2014/24/EU of the European Parliament and of the Council of 26
February 2014 on public procurement and repealing Directive 2004/18/EC
specific conflict of interest situations, complemented by the Commission’s guidelines on
the avoidance and management of conflicts of interest under the Financial Regulation
(C/2021/2119) and the relevant national provisions.
(3)1 The Working Party may take into account public reports of the Authority in the
performance of its tasks, but is not bound by or obliged to take into account public reports of the
Authority. The Authority may take the Working Group’s report into account in preparing its annual
analytical integrity report, but is not bound by or obliged to take it into account.
51. § (1) The Working Party shall adopt its annual report by 15 March of the year following the year
in question.
(2) The Working Group shall send its annual report to the Government, which shall
publish it on its website.
52. § (1) The Government shall discuss the annual report of the Working Group and the proposals
contained in the annual report within two months of its submission.
(2) If the Government decides not to implement a proposal, it shall send the detailed reasons for
its decision to the Chairman of the Working Party within one month of the decision.
(3) The Chair of the Working Party shall inform the Working Party of the action taken on the
basis of the annual report and the justification for any action not taken. This information shall be
published on the Government’s website in the same place as the Working Group’s annual
report and on the Authority’s website.
53. §
2
Members of the Working Group representing independent non-governmental actors
active in the fight against corruption are entitled to prepare shadow reports, which shall be
made publicly available on the website of the Working Group and the Authority, in the same place
as the annual report of the Working Group, at the same time as it is sent to the Government.
21. Members and invitees of the Working Group
54. § (1) The number of members of the Working Group shall be twenty-one, consisting of.
a) the President of the Authority,
b) ten members representing non-governmental actors, and
c) is composed of ten members
representing public bodies.
(2) The members representing non-governmental actors participating in the work of the
Working Group shall be invited by the Chairperson of the Working Group, as decided by the
Management Board of the Authority.
(3) Members of the Working Group representing public authorities:
a) the senior professional manager designated by the Minister responsible for justice,
b) a senior technical manager appointed by the Minister responsible for public investment,
c) a senior professional manager appointed by the Minister responsible for public finances,
d) a senior professional manager appointed by the Minister for the Prevention of Crime,
e) a senior professional manager appointed by the Minister responsible for administrative
quality policy and personnel policy,
f) a senior technical manager appointed by the Minister responsible for the use of EU funds,
g) the person designated by the Director General of the Office for the Protection of the
Constitution,
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1 Established by Act XLIV of 2022,
§ 82. Effective: 24 XI 2022.
2 Amended by Act XLIV of 2022, No 84, § 16.
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h) the person designated by the National Police Commissioner,
i) the person designated by the Director General of the National Defence Service, and
j) the person appointed by the President of the National Tax and Customs Administration.
(4) All members have the same rights and obligations in relation to the functioning of the
Working Party, including access to information and the right to intervene.
(5) Membership of the Working Party does not give access to the Authority’s activities.
55. § (1) The Chairperson of the Working Group invites the following to participate in the work of
the Working Group as permanent invitees, in a consultative and advisory capacity:
a) the person appointed by the President of the State Audit Office,
b) the person appointed by the President of the Office of Economic Competition,
c) the person appointed by the President of the Public Procurement Authority,
d) the person appointed by the Chairman of the Regulatory Activities Authority,
e) the President of the National Office for the Judiciary, and
f) the person appointed by the Attorney General.
(2) Permanent invitees shall have the same rights as members in terms of access to
information and the right to intervene in the functioning of the Working Party.
(3) At the request of the Chairperson of the Authority, another person may participate in the
meetings of the Working Party in an advisory capacity.
56. § (1) The members of the Working Group, as well as permanent and ad hoc
invitees, shall not be remunerated or reimbursed for their work in the Working Group.
(2) The members of the Working Party, as well as those invited on a permanent or ad
hoc basis, shall be bound to observe all legally protected secrets, in particular business
secrets, of which they become aware in connection with the performance of their duties.
22. Members of the Working Group representing non-governmental actors
57. § (1) Members representing non-governmental actors shall be selected through an
open, transparent, non-discriminatory application procedure, on the basis of objective criteria
related to their expertise and merits.
(2) A non-governmental member must be a person who can demonstrate his or her independence
from the Government, public authorities, political parties and business interests, and who
has proven competence and a sufficiently long and proven professional record in one or more of
the following areas:
a) preventing and fighting corruption,
b) transparency, access to public information,
c) public procurement procedures,
d) the protection of human rights and law enforcement in relation to the tasks of the Task Force.
(3) The list of candidates representing non-governmental actors who apply for the call for
applications shall be drawn up by the Chairperson of the Authority.
(4)3 The Eligibility Committee shall provide the Management Board of the Authority with a
binding opinion on the assessment of the eligibility criteria and the selection criteria for the
nomination of members. In addition to the assessment of eligibility, the Eligibility Committee may,
in its opinion, contribute in any way to an informed decision on the nomination of members
representing non-governmental actors, without prejudice to the nomination and appointment
procedure.
(5) The Management Board of the Authority shall select the members representing nongovernmental actors from the list of candidates, taking into account the opinion of the Suitability
Committee.
(6) The members representing non-governmental actors must carry out their mandate in
person.
3 Established by Act XLIV of 2022, § 83. Effective from 24.XI.2022.
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58. § (1) The mandate of a member of the Working Group representing nongovernmental actors shall be terminated
a) by resigning,
b) with his death,
c) by withdrawing the invitation if the Authority’s Management Board decides, on a proposal from
the Chair of the Working Group, that the selection criteria are no longer met.
(2) A member of the Working Party representing non-governmental actors may resign in
writing at any time from his or her position in the Working Party. No reasons need be given for
such resignation. The resignation shall be communicated to the Management of the Authority.
23. The Chair and Vice-Chair of the Working Group shall
59. § (1) The President of the Authority shall chair the Working Group.
(2) The Vice-Chairperson of the Working Party shall be elected by the Working Party from
among its members representing non-governmental actors, by majority decision.
60. § (1) The Chairperson of the Working Group shall represent the Working Group.
(2) In the absence of the Chairperson of the Working Party, the Vice-Chairperson of the
Working Party shall represent the Working Party and shall have full power to chair its meetings.
24. Meeting of the Working Group
61. § (1) The Working Group shall hold its meetings as necessary, but at least twice a year.
The Chair shall draw up the agenda for the meeting and chair the meeting.
(2) The quorum of the Working Group is reached when more than half of its members are present.
(3) The Working Party shall take its decisions by a simple majority of the votes cast, except
as provided for in paragraph 4. The vote of the Chairperson of the Working Party shall be
counted as a vote cast by one of its members; in the event of a tie, the vote of the Chairperson of the
Working Party shall be decisive. Permanent and ad hoc invitees shall not have the right to vote.
(4) In the event that the number of members present at a meeting representing nongovernmental actors, excluding the Chairperson, is less than half the number of members
present, the votes of the members representing non-governmental actors shall be weighted so that
the total votes of the members representing non-governmental actors shall be half of the total
votes, excluding the vote of the Chairperson.
(5) The Working Party shall adopt its own rules of procedure on a proposal from the chair.
62. § The minutes of the Working Group meeting shall be published on the Authority’s website.
Written contributions sent in advance by members, as well as their subsequent written
comments, shall be attached to the minutes.
25. Secretariat of the Working Party
63. § (1) The Authority shall provide secretarial and administrative support for the activities of
the Working Party.
(2) The civil servant designated from within the Authority to perform the tasks referred to in
paragraph (1) shall be independent of the Working Party and shall be responsible to the Authority.
PART THREE
THE COMMITTEE OF ELIGIBILITY
VII. CHAPTER 2
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26. Tasks of the Fitness Committee
64. § (1) The Fitness Committee shall be an advisory body independent of the Authority and the
Working Group. The Fitness Committee shall be composed of three independent members.
(2) The Eligibility Committee is convened by the head of the European grants audit body.
(3) The Fitness Committee takes its decisions by majority vote.
(4) The Eligibility Committee shall establish its own rules of procedure.
65. § The Fitness Committee shall perform the tasks related to the Authority and the
Working Group as defined in this Act.
27. Members of the Alpine Committee
66. § (1) The members of the Committee of Excellence shall be appointed by the head of the
European grants audit body for a period of five years, following an international open and
public call for applications. Members of the Committee of Eligibility shall not be reappointed. The
Head of the European grant audit body may not be instructed or influenced in any way in the
appointment of the members of the Committee of Eligibility.
(2) Members of the Fitness Committee shall be completely independent in the
performance of their duties and shall neither seek nor take instructions from any institution,
body, office, organisation or person.
(3) The following persons may be appointed as members of the Committee of Eligibility
a) has not held any office or mandate pursuant to Section 42 (1) a) or b) of Paragraph (1)
of Article 42 in the 5 years preceding the nomination,
b) have current or past substantial experience in a recognised international organisation in the
field of public procurement or the fight against corruption, and have a sufficiently long, verifiable and
relevant experience in such an organisation, and
c) has a high level of integrity.
(4) Members of the Eligibility Committee receive a daily subsistence allowance at the
European Union technical assistance rate and are entitled to reimbursement of expenses incurred
in connection with their membership from the European grant audit body.
28. Obligation for a member of the Fitness Committee to make a declaration of
assets and rules on conflicts of interest
67. § (1) The member of the Fitness Committee shall make a declaration of assets and
liabilities prior to his/her appointment and annually thereafter. The rules governing the
declaration of assets of Members of Parliament shall apply to the declaration of assets, with the
exceptions provided for in this Act.
(2) The declaration of the assets of the member of the Committee shall be managed by the head
of the European grant audit body and shall be kept until the date specified in paragraph 4.
(3) The procedure concerning the declaration of assets of a member of the Committee of
Eligibility may be carried out by the head of the European grants audit body.
(4) The head of the European grant audit body shall publish a public, full-page copy of the
declaration of assets of the member of the suitability committee on the Authority’s website
without delay. The declaration of assets and liabilities may be removed from the website after a
period of five years following the end of the term of office of the member of the Committee of
Eligibility.
(5) Before being appointed, a member of the Fitness Committee shall declare a conflict of
interest in the performance of his/her duties. The declaration of conflict of interest shall be
submitted to the European
4 See § 3/B of Government Decree 210/2010 (30.VI.).
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grants shall be held by the head of the body carrying out the audit and shall be kept for five years
after the end of the term of office of the member of the Committee on Fitness.
(6) If the member of the Fitness Committee participates in the decision-making process pursuant
to Article 37(3), the member of the Fitness Committee shall be subject to the provisions of
the Financial Regulation (EU) No 1296/2013/EU, (EU) No 1301/2013/EU, (EU) No
1303/2013/EU, (EU) No 1304/2013/EU, (EU) No 1309/2013/EU, (EU) No 1316/2013/EU, (EU)
No 223/2014/EU and (EU) No
The conflict of interest rules under Article 61 of Regulation (EU, Euratom) 2018/1046 of the
European Parliament and of the Council of 18 July 2018 amending Regulation (EU,
Euratom) No 283/2014 and Decision No 541/2014/EU and repealing Regulation (EU,
Euratom) No 966/2012 shall apply.
29. Acting as the secretariat of the Fitness Committee
68. § The European grant audit body shall provide secretarial and administrative support for
the activities of the Eligibility Committee .
PART FOUR FINAL
PROVISIONS
VIII. CHAPTER 2
ENTRY INTO FORCE AND TRANSITIONAL PROVISIONS
30. Entry into force
69. § (1) This Act shall enter into force on the day following its publication, with the exception
of paragraphs (2) to (4).
(2) Articles 83, 88, 91 and 92(c) shall enter into force on 30 November 2022.
(3) Paragraph 5(6) shall enter into force on 31 March 2023.
(4) Sections 85, 86 and 92(b) shall enter into force on the day following the publication in the
Hungarian Official Gazette of the Government Decision certifying the complete availability of the
data contained in the register pursuant to Chapter IV.
(5)5 The calendar day of the entry into force of Articles 85, 86 and 92(b) shall be determined by the
Minister of Justice by an individual decision published in the Hungarian Gazette immediately
after its publication.
31. Transitional provisions
70. § (1) The Chairperson and Vice-Chairpersons of the Authority shall be appointed by 4 November
2022.
(2) The first meeting of the Authority’s Management Board shall be held no later than 19
November 2022 and shall be minuted.
(3) The Authority will become fully operational on 19 November 2022.
71. § (1) The European aid audit body shall provide support for the secretarial and
administrative tasks related to the establishment of the Authority for a period of 6 months from
the entry into force of this Act and shall provide the necessary infrastructure.
5 Amended by Act XLIV of 2022, No 84, § 17.
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(2) The economic organisational tasks of the Authority shall be carried out by the body
auditing the euro grants for a period of 6 months from the entry into force of this Act, in
accordance with the rules on the management, accounting, reporting and operational procedures
of public finances.
(3) The detailed arrangements for the performance of the economic functions of the organisation,
including the management tasks and related responsibilities, shall be laid down in a division of labour
agreement.
(4) The work-sharing agreement referred to in paragraph 3 shall be concluded between the
Chairperson of the Authority and the head of the European grant audit body.
(5) The European aid audit body shall, from the entry into force of this Act until the effective
operation of the Authority, contribute to the performance of the tasks facilitating the
establishment and operation of the Authority and, in addition to the tasks specified in
paragraph (1), provide support to the Chairperson and Deputy Chairpersons of the Authority in
the performance of their tasks as specified in this Act.
(6) The Authority and the European grant audit body shall account to each other in the
context of the assistance and grant provision referred to in paragraphs 1 and 5 in the manner
and within the time limits laid down in their respective work-sharing agreements referred to in
paragraph 3.
72. § The Fitness Committee, in close cooperation and consultation with international
organisations, shall review the functioning of the Authority and the Management Board of the
Authority two years after the appointment of the members of the Management Board of the
Authority.
73. § The first integrity risk assessment shall be carried out within four months of the start of
the Authority’s operations, in cooperation with international organisations with internationally
recognised methodologies, on the basis of the Public Procurement Accountability, Integrity and
Transparency Indicators (MAPS Pillar IV).
74. § (1) The first analytical integrity report shall, in addition to the content of § 11.
a) includes an assessment of whether the existing rules on conflicts of interest are in line with the
guidelines set out in the Commission’s Communication on the guidelines on the prevention
and management of conflicts of interest under the Financial Regulation (C/2021/2119) and
whether improvements are needed,
b)6
in the light of the integrity risk assessment exercise under Articles 9 and 10, fraud within the
meaning of Article 3 of Directive (EU) 2017/1371, corruption within the meaning of Article 4(2) of
Directive (EU) 2017/1371 and conflict of interest within the meaning of Article 61 of
Regulation (EU, Euratom) 2018/1046. Article 61(1) of the Financial Regulation and Article 24 of
Directive 2014/24/EU, supplemented by the Commission’s Guidelines on the prevention and
management of conflicts of interest under the Financial Regulation (C/2021/2119),
c) review the regulatory framework and functioning of the Hungarian asset recovery system,
including its scope and monitoring process.
(2) The Authority shall prepare the first analytical integrity report by 30 June 2023.
75. § By 31 December 2023, the Authority shall prepare an ad hoc report reviewing the
regulatory framework and functioning of the Hungarian asset declaration system, including
its scope and the verification process.
76. § (1)7 The register shall commence its operation after the conditions for direct data linkage
with the criminal records system, the business information system, the register of sole proprietors
and the register of beneficial owners, as specified in this Act, have been met.
(2) When the register becomes operational, the Authority shall register the economic operators
in respect of which the person who has committed the offence giving rise to the ground for
exclusion has not already been exempted from the criminal record.
77. § (1) The Working Group shall be established by 1 December 2022. The Working Group
shall hold its first meeting no later than 15 December 2022.
(2) The Working Party shall adopt its first report for 2022 by 15 March 2023 and
6 Amended by Act XLIV of 2022, § 84.18.
7 Amended by Act XLIV of 2022, No 84, § 19.
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sends to the Government.
31/A.8 Severability clause
§ 77/A.9
(1) Paragraph (6) of Article 5
a) point 2 of Article IX(6) and Article 23c of the Fundamental Law,
b) point 3 of Article 43(4) of the Fundamental Law,
c) point 5 of Article VI (4) b of the Fundamental Law,
d) point 6 of Article 24(9) of the Fundamental Law,
e) Point 7 of Article 29(7) of the Fundamental Law ,
f) point 9 of Article XXIX(3), Article 2(1) and Article 35(1) of the Fundamental Law,
g) Point 14 of Article 31(3) of the Fundamental Law,
h) 15 is a cornerstone under Article XXIX(3) of the
Fundamental Law.
(2) Paragraph (6a) of Article 5(6a)
a) (a) under Article 12(5) of the Fundamental Law,
b) (b) under Article 4(2) and (5) of the Fundamental Law,
c) (c) shall be considered to be fundamental on the basis of Article 25(8) and Article 26(1) and
(2) of the Fundamental Law.
IX. CHAPTER 2
AMENDING PROVISIONS
78-80. §11
32-34.10
35. Amendment of Act CXL III of 2015 on Public Procurement
81-82. §12
83. §
13
84. §
14
85. §
15
86. §
16
87. §
17
88. §
18
89-90. §19
8
Inserted by: Act LVI of 2022, § 17 (3). Effective from 31.III.2023.
9
Inserted by: Act LVI of 2022, § 17 (3). Effective: 31.III.2023.
10Repealed: pursuant to § 12 -12/B of Act CXXX of 2010. Invalid: from 12 X. 2022.
11 Repealed: pursuant to § 12 -12/B of Act CXXX of 2010. Invalid: from 12 X. 2022.
12 Repealed: pursuant to § 12 -12/B of Act CXXX of 2010. Repealed: 12 X 2022.
13 Repealed: pursuant to § 12 -12/B of Act CXXX of 2010. Invalid: from 1.XII.2022.
14 Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Invalid: from 12 X. 2022.
15 Does not enter into force pursuant to Article 85 of Act XLIV of 2022.
16 The calendar day of its entry into force shall be determined by an individual decision of the Minister of Justice published in the
Hungarian Gazette immediately after its publication.
17 Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Repealed: 12 X 2022.
18 Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Invalid: from 1.XII.2022.
19 Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Invalid: from 12 X. 2022.
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91. §
20
92. § Act CXLIII of 2015 on Public Procurement
a) 21
b) 22
c) 23
d)-h)24
spleen.
93-96. §26
36-37.25
20 Repealed: pursuant to Act CXXX of 2010, Articles 12-12/B. Invalid: from 1.XII.2022.
21 Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Invalid: from 12 X. 2022.
22 The calendar date of its entry into force shall be determined by an individual decision of the Minister of Justice published in the
Hungarian Gazette without delay after its publication.
23 Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Invalid: from 1.XII.2022.
24 Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Repealed: 12 X 2022.
25Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Invalid: from 12 X. 2022.
26 Repealed: pursuant to Act CXXX of 2010, § 12 -12/B. Invalid: from 12 X. 2022.
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Final explanatory memorandum of Act XXVII of 2022
on control of the use of EU budgetary resources1
General justification
Hungary is subject to a procedure under Article 6(1) of Regulation (EU, Euratom) 2020/2092
of the European Parliament and of the Council of 16 December 2020 on the general
conditionality on the protection of the European Union budget (the conditionality Regulation). The
Hungarian Government is committed to the full implementation of all corrective measures (17)
undertaken as a result of constructive and intensive cooperation with the Commission. The
Government has already started to implement the measures undertaken at the end of August and
will continue to implement all its commitments in the period thereafter in accordance with the set
timetable. Hungary has committed to implement the key steps to implement the corrective
measures by 19 November 2022.
The proposal aims at establishing an Integrity Authority (hereinafter “the Authority”) and an
Anti-Corruption Task Force (hereinafter “the Task Force”) in order to reach an agreement
with the European Commission.
Pursuant to Section 18 (3) of Act CXXX of 2010 on Legislation and Section 20 of IM Decree
5/2019 (13.III.) on the publication of the Hungarian Gazette and on the indication of the
publication of the legislative act at the time of publication and in the publication of the
instrument regulating the organisation of public law, this explanatory memorandum is
published in the Reasons section of the Hungarian Gazette at .
Detailed
justification
To § 1-2
As an autonomous public administration, the Authority is independent of the Government and other
bodies. The independence of the Authority is guaranteed by extensive legal safeguards.
To § 3
The proposal sets out a general description of the Authority’s tasks.
To § 4
The proposal lays down the general rules for the procedure and performance of the Authority’s
tasks. The proposal provides guarantees for the protection of the persons lodging a notification or a
complaint with the Authority and refers to the Act on Complaints and Notifications of Public Interest
as background legislation.
To § 5-6
The proposal summarises and organises the main areas of the Authority’s tasks – in several cases
1Published in the Explanatory Memorandum 2022/97. See Act CXXX of 2010, § 18 (4) -(5).
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delegated to other legislation establishing the Authority’s powers – to ensure transparency in
the regulatory system. The proposal makes it clear that the Authority may not delegate the
functions and powers of any other body and may only exercise its own statutory functions and
powers. However, as an explicit guarantee, and taking into account the specificities of the Authority,
the proposal specifically underlines that the Authority does not take over the tasks of the bodies
established to manage EU funds and does not interfere in their role as defined in the management
and control system.
To § 7
The impartiality of the procedure is ensured on the one hand by the general rules on
conflicts of interest applicable to staff, and on the other hand by the proposal to also detect and
disclose any conflict of interest that may arise in the course of the performance of the Authority’s
tasks, in order to ensure the objective performance and independent functioningofthe Authority.
To § 8
The proposal ensures that the Authority can conclude agreements with other bodies on
communication and exchange of information and to facilitate practical arrangements for the
exercise of its powers in the exercise of its mission. The Authority may also conclude cooperation
agreements with European Union bodies, without prejudice to the rules on international judicial
cooperation.
To § 9-10
The proposal sets out the detailed rules for integrity risk assessment.
To §§ 11-13
The proposal sets out detailed rules for the annual analytical integrity report.
To § 14-16
The proposal lays down the detailed rules for issuing a recommendation from the Authority.
To § 17
The Authority’s procedure may be of a general investigative nature (not administrative) and
administrative procedure, and the Authority may initiate proceedings before another body. In
its proceedings, the Authority may exercise its powers as an administrative authority only in
the context of public procurement procedures, in which case the Authority shall carry out official
controls pursuant to Act CL of 2016 on the General Administrative Procedure (hereinafter: the
“General Administrative Procedure Act”) and may in certain cases impose obligations on contracting
authorities in official decisions.
The Authority is conducting an investigation procedure to identify circumstances which
may adversely affect or be likely to adversely affect the implementation of EU financial assistance. In
any case, the Authority may conduct an investigation procedure if it obtains information that
may justify the performance of its tasks or the exercise of its powers. The Authority may initiate
further proceedings in the light of the facts established.
The Authority must notify the person or body concerned, the Minister responsible for the use
of European Union funds and the head of the body that audits European grants of the opening of
the investigation procedure. In the case of an investigation relating to a procurement procedure,
the preliminary and in-process
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the supervisory body must be notified in order to enable the Authority to exercise its powers in an
effective cooperation framework and to inform it of any proceedings or legal proceedings
already pending before the ACPC.
The Authority may not exercise its powers to ensure the smooth operation of the procedure if the
alleged infringement in respect of which it wishes to act is the subject of proceedings before the
Public Procurement Committee or of legal proceedings.
The Authority’s investigation procedure does not qualify as an administrative authority
procedure, it is a sui generis procedure, therefore there is no room for administrative lawsuits in
relation to its activities: the Authority does not enter into a direct relationship of public authority
with the bodies under investigation, but always acts as the other competent authority, to which
procedure the specific procedural rules and guarantees apply. The Authority has the right to
initiate proceedings, which, as in the case of supervision of the legality of the act, can be
enforced not directly but ultimately through the courts .
To § 18
In order to ensure the efficient and effective conduct of the investigation procedure, the proposal
provides the Authority with extensive powers of access to information and data management and
lays down the related safeguards .
To § 19
The Authority’s investigation procedure may result in the issuing of a report, the formulation of
a recommendation or the initiation of proceedings before the competent authority or court. In the
course of its investigation procedure, the Authority shall assess the information obtained by issuing a
report, unless other action is justified. The Authority may give the person or entity concerned by
the report the opportunity to comment on the draft report. The Authority may also make
recommendations to the person or entity under investigation, setting a time limit, in order to further
the purpose of the examination procedure. The person or entity under investigation shall inform the
Authority of the implementation of the recommendations and, where it disagrees, of the reasons for
disagreement. Where the Authority finds irregularities in the use of EU funds or considers that its
recommendations for action are not being properly implemented, it may refer the matter to the
competent authority or court for an action.
To § 20
The Authority exercises direct public authority powers in the field of public procurement involving
EU funding, compared to sui generis powers. The Authority carries out its inspections in
accordance with the rules of the Public Procurement Act, which provides the procedural
guarantees (obligation to state reasons, guarantee of client rights, legal remedies, etc.) that
ensure that the Authority’s inspections comply with all the requirements of fair procedures. In
the course of these checks, the Authority has at its disposal the full range of evidence
available under the General Provisions of the Code of Administrative Procedure, which it can
use to compel cooperation if necessary by means of the instruments laid down in the Code
(procedural fines, recourse to the police).
To § 21
The proposal lays down rules on the suspension by the Authority of public procurement procedures
involving EU funds.
To § 22
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The Authority’s special power of imposition is that it can impose an obligation by means of an
Authority decision
a contracting authority to notify the Authority of the launch of a procurement procedure involving
specific EU funding. The proposal sets out the criteria for imposing this obligation. The decision is
subject to a judicialremedy under the General Procedural Regulation without provision.
To § 23
The enforceability of the binding decisions that the Authority may impose is ensured by the
possibility of imposing fines in the event of non-compliance. The provisions of Act CXXV of 2017
on Sanctions for Administrative Violations apply to the amount of the fine and the assessment
criteria, the proposal only contains the facts. The fine is imposed by an administrative decision
and can therefore be challenged in an administrative lawsuit under Article 114 of the General
Administrative Procedure Act. The amount collected from the fine constitutes the Authority’s own
revenue.
To § 24
The proposal lays down detailed rules on the Authority’s right of initiative. The proposal
provides that the Authority has to notify other competent authorities, including the European
Anti-Fraud Office and the European Public Prosecutor’s Office, with a simultaneous
transmission of the notification to the Public Prosecutor’s Office, of suspected fraud, conflict of
interest, corruption or any other illegal or irregular situation. The proposal also confirms that the
staff of the Authority is subject to the obligation to report under Article 376(2) of Act XC of 2017 on
Criminal Procedure.
If its investigation reveals a suspected irregularity, the Authority has the right to initiate an
irregularity procedure under the provisions of the legislation governing the use of EU funds
with the competent managing authority or, in the case of a project financed by the Instrument
for Recovery and Resilience, with the national authority. In addition, the proposal empowers
the Authority to initiate further proceedings, in particular competition proceedings before
the Competition Authority, in compliance with Article 4(2)(b) of the ECN+ Directive. The
Authority shall be empowered to act in accordance with the provisions of Act CXLIII of 2015 on
Public Procurement (hereinafter referred to as “Act CXLIII of 2015 on Public Procurement”).
152 (1) may also initiate proceedings before the Public Procurement Committee.
To § 25
The Authority may, in the exercise of its supervisory or control functions, request the
competent authority to initiate proceedings, other than in its capacity as an administrative
authority. On the basis of a request by the Authority, the competent authority must initiate
proceedings ex officio, on the basis of a statutory obligation.
The competent body may refuse to comply with a request from the Authority only if compliance
would be contrary to the law.
The fulfilment of this obligation can be enforced by means of an action for failure to act, and
the proposal therefore stipulates that the Authority has the status of a party to proceedings
under the General Civil Code. As a result of this procedural status, if the organisation disagrees
with the decision, it has the right to challenge the decision in an administrative procedure
under the General Tax Code, without any other specific legal provision.
To § 26
The proposal lays down certain specific procedures for the initiation of actions for failure to act by the
Authority.
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To § 27
As a legal guarantee of the Authority’s ability to fulfil its tasks, the proposal stipulates that
the Authority may challenge in administrative proceedings any decision of the public procurement
arbitration board and other decisions of the public authorities concerning public procurement
procedures involving EU funding. The proposal sets out the detailed rules in this respect.
Pursuant to Section 39 (1) paragraph 1 of Act I of 2017 on the Code of Administrative Procedure
(hereinafter: Kp.), no action may be brought after 1 year.
To §§ 28-31
In order to facilitate the effective enforcement of the grounds for exclusion under Article
62(1)(a)(aa)-(a)(a) to (a) of the Public Procurement Act in public procurement procedures, the
Authority is responsible for keeping a register of economic operators subject to these grounds
for exclusion. With the introduction of the register, the grounds for exclusion under the Public
Procurement Act will also be amended in that the Authority will have the power to determine the
duration of the exclusion. The duration of the exclusion may be determined in accordance with the
principle of proportionality and may not exceed four years from the date on which a final judgment in
a criminal case becomes final.
Also in accordance with the principle of proportionality, the Authority will invite the economic
operator concerned, as soon as the registration procedure is opened, to present, if it wishes to
make use of this possibility, the measures taken to self-cleanse, i.e. to restore its reliability. The
self-cleaning exercise gives the economic operator the possibility to be exempted from the
legal consequence of the ground for exclusion, in accordance with the relevant provisions of
the EU Directive. Self-clearance is not only available during the registration process, but also
afterwards for economic operators subject to a ground for exclusion.
The purpose of the register is twofold: on the one hand, the Authority will determine the duration
of the exclusion during the registration procedure, and on the other hand, the register serves
as a verification method where contracting authorities can check during the procurement procedure
whether there are grounds for exclusion under Article 62 (1) a) aa)-ag) of the Public
Procurement Act. The grounds for exclusion and their effects continue to be defined in the
Public Procurement Act, and an economic operator which is subject to a ground for exclusion may
not be a tenderer or candidate, a subcontractor or an entity involved in the attestation of
suitability in a public procurement procedure, nor may a subcontractor which is subject to a
ground for exclusion be involved in the performance of the contract.
Registration applies to both natural and legal persons and the duration of the exclusion is
determined by the Authority for each economic operator. Data from the register concerning the name,
tax number, registered office and duration of the exclusion period of the economic operator shall be
public and shall be published in the electronic public procurement system operated by the
Minister responsible for public procurement; personal data concerning the public sector and
other personal data shall not be disclosed.
For record keeping, the Authority will receive data from the criminal records system, the register of
sole proprietors and the business information system, and the proposal details the main provisions
for these data links.
To § 32
The Authority is a one-person body, headed by the President. The Chairperson shall,
however, work in cooperation with the two Vice-Chairpersons of the Authority’s Management Board
and shall exercise the Authority’s functions and powers only in accordance with the decision
of the Authority’s Management Board .
To § 33
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The proposal defines the classical functional tasks related to the management of the Authority’s
departments –
and powers which the Chairperson of the Authority shall exercise independently.
To § 34
The Authority’s main decision-making body is the Authority’s Management Board, composed of the
Chairperson and two Vice-Chairpersons. The Management Board of the Authority shall take
decisions directly related to the exercise of the Authority’s functions and powers as a body by
majority decision.
The Management Board of the Authority shall not exercise any management powers over
the body and the functioning of the Management Board of the Authority shall be without
prejudice to the functional tasks and powers of the Authority as a central public administration,
which the Chairperson of the Authority shall exercise independently as a single head and
shall issue the relevant decisions independently, subject to the duty of cooperation with the ViceChairpersons.
The Authority’s Management Board reports annually on its activities to Parliament and sends
the report to the European Commission.
To §§ 35-36
The President and the Vice-Presidents of the Authority shall be appointed by the President of the
Republic for a term of six years, on a proposal from the President of the State Audit Office. The
President and the Vice-Presidents shall not be eligible for reappointment. In order to ensure that the
selection is based on objective professional criteria, the President of the State Audit Office shall
make his proposal from a list of persons drawn up by the Committee of Competence for the
Selection of Members of the Management Board of the Authority (hereinafter referred to as
the ‘Committee of Competence’).
The Chairperson and the Vice-Chairpersons of the Authority shall perform their duties within the
framework of a civil service relationship, and the provisions of Act CVII of 2019 on special status
bodies and the status of their employees (hereinafter referred to as the “Act on the status of
special status bodies and their employees”) shall apply to their legal relationship, with the
exceptions provided for in this Act. The proposal sets out the rules that differ from the
provisions of the Act and, where the provisions of the Act are additional or additional to the
provisions of the Act, the wording of the proposal makes this clear. In matters not covered by
the proposal, the rules of the Act apply.
To § 37
The Chairperson and Vice-Chairperson of the Authority shall be independent and professional. In
addition to the rules on appointment, this is guaranteed by a prior application and selection
procedure conducted by the Qualification Committee.
In an open and public tender, the aim should be to select suitable candidates from a wide
range of applicants. The competition is therefore only valid if there are at least twice as many
candidates as there are posts to be filled. For reasons of guarantee, the same rule of validity applies
to a repeat application.
The Eligibility Committee decides on the list of persons who have been selected on the basis of
their professional merit, skills and qualifications and who are considered suitable and thus eligible for
the post. In its opinion, the Committee may, without prejudice to the nomination and
appointment procedure, assist in an informed decision on the nomination of the Chairperson
and the Vice-Chairperson of the Authority in addition to the assessment of suitability.
To § 38
The proposal lays down detailed rules concerning the remuneration of the Chairperson and
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the Authority. The proposal also stipulates that the Chairperson of the Authority
shall serve twenty working days in each calendar year,
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The proposal defines the classical functional tasks related to the management of the Authority’s
departments –
vice-presidents are entitled to fifteen working days of additional management leave each calendar
year .
To § 39
The term of office of the Chairperson and Vice-Chairperson of the Authority may be terminated
in narrowly defined and objective circumstances. As a further safeguard rule, it is established that
the Chairperson or the Vice-Chairperson of the Authority may bring an administrative action against
the Chairperson or the Vice-Chairperson of the Authority, respectively, for a declaration that the
motion for dismissal of the Chairperson or the Vice-Chairperson of the Authority is unfounded.
To § 40
The proposal also lays down specific rules on termination ofemployment.
To § 41
The independence of the Authority from the Government is ensured by the proposal that the
President of the Republic does not require the countersignature of a member of the Government for
his decisions.
To § 42-44
For the Chair and Vice-Chair of the Authority, the proposal lays down strict rules on
conflicts of interest and declaration of interests.
To § 45-46
The proposal lays down certain detailed rules concerning the status of civil servants
employed by the Authority.
To § 47
The proposal applies to the Authority’s civil servants (including the Chairperson, Vice-Chairperson
and all staff)
he imposes a strict obligation of confidentiality.
To § 48-49
The Working Party is a body attached to the Authority with analytical, proposing, advisory
and decision-making tasks. The Working Group shall be open-ended. It is essential from a
safeguard point of view that the Working Party should be independent of the Authority and
should not interfere in its functioning. Its activities shall be without prejudice to the powers and
responsibilities of other bodies and it shall not be mandated to establish individual obligations or
liabilities. It is also guaranteed that non-governmental actors active in the fight against corruption
are involved in the activities of the Task Force.
To § 50
The provisions aim to define in detail the tasks of the Working Party.
To §§ 51-52

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To § 53
The proposal grants the members of the Working Group representing independent nongovernmental actors active in the fight against corruption the right to make a public shadow
report .
To § 54
Provisions governing the membership of the Working Party. The Working Party shall be
composed of members representing non-governmental actors and members representing
public bodies, in addition to the Chairperson of the Authority. From a safeguard point of view, the
proposal stipulates that all ta s have the same rights and obligations, including access to
information and the right to intervene, but that membership of does not give access to the
activities of the Authority.
To § 55
In addition to the members of the Working Group, the permanent invitees listed above may
participate in a consultative and advisory capacity. Permanent invitees shall have the same
rights of access to information and the right to intervene as members.
In addition, at the invitation of the Chair of the Authority, the Working Party may be attended by
other persons than members and permanent invitees, with the right to participate in the
deliberations (ad hoc invitees).
To § 56
The purpose of the provision is to lay down rules on the remuneration and confidentiality of
the members of the Working Party, its permanent invitees and ad hoc invitees.
To § 57
For the selection of the members of the Working Party representing non-governmental actors, the
proposal sets out guarantees of independence, professionalism and further detailed rules.
To § 58
Provisions for the termination of the mandate of the members of the Working Party representing
non-governmental actors .
To § 59-60
Provisions concerning the chair and vice-chair of the Working Party. The Chair of the Working
Group shall be the Chair of the Authority, who shall represent the Working Group. The Vice-Chair of
the Working Party shall be elected by the Working Party from among its members representing
non-governmental actors by majority decision. The Vice-Chair of the Working Group shall
represent the Chair of the Working Group and shall be fully responsible for chairing its meetings
in the event of his/her absence.
To §§ 61-62
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Provisions relating to the meetings and rules of procedure of the Working
Party.
To § 63
The secretarial and administrative support for the activities of the Task Force will be provided by
the Authority, which will appoint civil servants from within its own organisation, who are independent
of the Task Force and answerable to the Authority.
To § 64
In the context of the functioning of the Authority and the Task Force, a Suitability Committee is
established as a body to support the independent and objective decision-making on personnel
matters. The Competitiveness Committee shall be an advisory body of three members,
independent of the Authority and the Task Force. The Suitability Committee shall be
convened by the head of the body auditing the European grants. The Eligibility Committee shall
take its decisions by majority decision and shall establish its own rules of procedure.
To § 65
The specific tasks of the Fitness Committee are set out in certain provisions of the proposal
relating to the Authority and the Working Party .
To § 66
The proposal lays down the rules of mandate, guarantees and detailed rules for the members
of the Fitness Committee.
The procedure for the appointment of the members of the Fitness Committee is of paramount
importance to ensure the independence of the Fitness Committee as a whole and of its
members. To this end, it is specifically proposed that the head of the body auditing European
grants should not be instructed or influenced in the selection of the members of the Committee, which
could constitute grounds for a criminal offence of influencing or attempting to influence, in
particular abuse of office , coercion or even corruption.
To § 67
The independence and impartiality of the Fitness Committee is also guaranteed by rules on
asset declarations. The responsibilities and powers relating to the management of the
declarations of assurance shall be exercised by the head of the body auditing the European
grants and, in this context, a public, complete copy of the declarations of assurance shall be
published on the Authority’s website without delay. The explicit legal requirement is that the
head of the European grant audit body must have direct technical access to this part of the
Authority’s website for the purpose of publishing the declarations of assets.
The proposal stipulates that a member of the Fitness Committee shall declare a conflict of
interest in the performance of his or her duties upon leaving office; in addition, the proposal
establishes a specific conflict of interest rule with reference to the relevant EU act .
To § 68
A working structure to provide secretarial and administrative support to the work of the
Eligibility Committee will be provided by the European Grants Audit Office.
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To § 69
The proposal sets the date of entry into force on the day following the publication of the Act, in
order to ensure that the preparatory tasks related to the start of the Authority’s operations can
be carried out without delay and that they have a valid legal basis. The necessary preparation time
is guaranteed by the transitional provisions.
The Authority’s duties and powers in relation to the safeguarding of assets and liabilities shall take
effect on the date related to the relevant other legal rules.
To § 70-77
The proposal provides for transitional provisions to ensure the proper entry into force of the new
legislation and the establishment of the proposed bodies. The secretarial, administrative and
financial functions of the Agency will be carried out by the European audit body for a
transitional period. The proposal also lays down further transitional provisions of a technical
nature .
To § 78
As an amendment related to the establishment of the Authority, the proposal also establishes
the Authority as an autonomous state administration body in Act XLIII of 2010 on Central State
Administration Bodies and the Status of Members of the Government and State
Secretaries .
To § 79
With the amendment of Act CXCV of 2011 on Public Finances, the proposal explicitly states
that the new Authority is not a budgetary body under the direction or supervision of the
Government.
To § 80
The proposal provides for the issue of an identity card to the Chairperson and Vice-Chairperson of
the Authority to certify that they hold a public office .
To § 81
The proposal revises the conflict of interest rules of the Public Procurement Act as a whole
to bring them more in line with EU law.
In accordance with Article 24 of Directive 2014/24/EU, paragraph 1 sets out the general obligation
for contracting entities to prevent, detect and, where a conflict of interest arises, to remedy it.
The obligations of the contracting authority to prevent conflicts of interest are set out in paragraphs (2)
to (3). On the contracting authority’s side, it continues to lay down an obligation to make declarations
of conflict of interest on the part of persons involved in the procedure or its preparation. This
declaration is requested by the contracting authority at the time of the involvement of the person
concerned, and the new rules clarify that where a person is involved in more than one process
linked to the procedure, he must make a declaration in relation to each process. In practice,
therefore, a person may be required to make several declarations. The reason for this is that, for
example, it may not be clear at the preparatory stage whether a person acting on behalf of
the contracting authority will subsequently be considered to have a conflict of interest with regard
to tenderers or even subcontractors. It is the responsibility of the contracting authority to examine
and decide whether the
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whether a conflict of interest exists in the light of any circumstances declared by the person
involved.
The European Commission’s Communication 2021/C 121/01 “Guidelines on the prevention and
management of conflicts of interest under the Financial Regulation in the context of the use of
EU funds” (hereafter: the Commission Communication 2021 on the interpretation of conflict of
interest) points out that the use of declarations of interest is effective if they are accompanied
by safeguards to identify false declarations. In particular, such checks may be carried out by
cross-checking with other sources of information, for example, publicly available data in the business
register, to see whether the contracting authority can find a link between the persons involved in
the procedure and the tenderers, or by asking for a more detailed declaration from the persons
involved, for example, on their business interests. The way in which the contracting authority may
verify the veracity of the declarations may be provided for in its procurement rules.
Paragraph 4 specifies in particular which situations are to be considered as conflicts of
interest. The notion of incompatibility is in line with Article 24 of Directive 2014/24/EU. which
requires that the notion of conflict of interest shall cover at least cases where the contracting
authority or the contracting service provider acting on behalf of the contracting authority has,
directly or indirectly, a financial, economic or other personal interest in the conduct of the contract or
the result of the contract which may influence the impartiality and independence of the contracting
authority or the contracting service provider with regard to the award of the contract. The concept
of conflict of interest is interpreted in the Directive and in the international guidelines which are
generally considered to be authoritative for its definition [the most commonly cited of these
is the OECD definition, see “Managing Conflict of Interest in the Public Service”, OECD
Guidelines and Country Experiences, pp. 24-25] as referring to natural persons. Therefore, the Civil
Procedure Act no longer refers to conflicting entities, but this does not of course mean that the
circumstances giving rise to a conflict of interest in relation to the entities involved should not be
taken into account, as they remain relevant in relation to the conflict of interest of the natural person
involved on behalf of the entity. Interests linked to organisations (e.g. companies advising the
contracting authority) should therefore continue to be taken into account and examined in the
context of the conflict of interest, or lack thereof, of the representative of the organisation
concerned.
Conflict of interest within the meaning of paragraph 4 shall include any situation where there
is an objective circumstance affecting confidence in the independence and impartiality of the
person or entity concerned. A conflict of interest is therefore a situation (e.g. a relationship between
a person involved in the evaluation and a member of a tendering undertaking) which, according to
an objectivised standard, is likely to prevent the person or organisation concerned from
performing his or her duties impartially. It is not necessary, however, that the person acting on behalf
of the contracting authority be genuinely biased and it is also not necessary to prove intentional acts
on the part of the persons concerned. If it is shown that the person acting on behalf of the contracting
authority has in fact used his position to favour an economic operator, this may amount to an act of
corruption or other serious misconduct.
The interest which may affect the impartiality of the person acting on behalf of the contracting
authority may be financial, economic or, as a general category including the former, any other
personal interest. The latter category is a broad one, as defined in Regulation (EU, Euratom) No
(EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the
financial rules applicable to the general budget of the Union and repealing Regulation (EU,
Euratom) No 966/2012 of 25 October 2012 (hereinafter the “2018 Financial Regulation”). a
conflict of interest exists where the impartial and objective exercise of the functions of a person
participating in the implementation of the Union budget is compromised for reasons involving family,
emotional life, political sympathy, nationality, economic interest or any other direct or indirect
personal or family interest, or where the person concerned is subject to a legal obligation to act on
his/her own initiative, on behalf of the Union.
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interest is harmed.” A variety of circumstances (e.g. family, emotional ties) can therefore lead to a
situation where a person’s personal interest and the public interest he or she is representing
may conflict. However, any minor interest or mere connection with a person’s beliefs or opinions
does not lead to a conflict of interest. As stated in the Commission Communication on the
interpretation of conflict of interest 2021, interests must be sufficiently important to be considered
as such
“jeopardise” the “impartial and objective exercise of its functions”. “
Paragraph 5 specifies the situations which are normally to be regarded as affecting the
impartiality of the persons concerned and therefore constituting a conflict of interest. The
presumption attaching to these situations may exceptionally be rebutted if objective circumstances
show that there is no conflict of interest between the personal interest of the person concerned and
the public interest which he represents, despite those circumstances.
In relation to conflicts of interest, the primary legal obligation of the contracting authority is to
prevent infringements, which primarily means prohibiting the participation of persons with a
conflict of interest in the substantive acts related to the public procurement procedure. Where a
conflict of interest does arise, the contracting authority must take the necessary steps to restore the
legality of the procedure, i.e. to eliminate the conflict of interest and to create a situation in the public
procurement procedure which ensures compliance with the principles of equal treatment and
fair competition. In order to draw the consequences of a conflict of interest, it is relevant to
examine which decisions in the procedure concerned are affected by the conflict of interest
and what impact it has on the level playing field. A decision by a person with a conflict of interest
or any other substantive factor capable of influencing the outcome of the procedure constitutes a
serious breach of the principle of equal treatment and fair competition, in line with the concept of
conflict of interest, and it is not necessary to prove the actual impact of the conflict of interest
on the specific decision-making process. Where appropriate to ensure the principles of equal
treatment and fair competition, the contracting authority must, without the participation of the
person or entity concerned by the conflict of interest, repeat the evaluation operations
previously carried out, e.g. by reassessing the tenders received or by reviewing a decision taken in
the evaluation of tenders (which is provided for in Article 79 – a of the Public Procurement Code). In
many cases, however, the participation of a person with a conflict of interest may be likely to cause
a distortion of competition which cannot be remedied by repeating parts of the procedure, e.g.
because an economic operator may already have access to information which gives it an
advantage or because the conflict of interest has already affected the definition of the terms of the
procedure. It may be that only the exclusion of the economic operator concerned by the conflict of
interest is likely to create a situation which complies with the principles, in which case the
contracting authority is entitled to exclude the economic operator concerned. The
Commission Communication 2021 on the interpretation of conflict of interest explains that
measures to remedy a conflict of interest must be directed primarily at the person concerned
on the side of the contracting authority, i.e. that person must cease all activities related to
the tender in question, for example, the member of the evaluation committee is removed
from the board. If such measures are not sufficient to remedy the conflict of interest (e.g. the
person concerned has been involved in stages of the procurement procedure which have already
taken place and cannot be changed/replicated), the contracting authority must take further measures
in respect of the tenderer concerned (e.g. exclusion of the tenderer from the tender, a possibility also
mentioned in Article 57(4)(e) of the Public Procurement Directive).
If the contracting authority does not or cannot remedy the incompatibility, the Public
Procurement Arbitration Committee (hereinafter referred to as the “PAC”) may annul the
procedural acts retroactively, even until the commencement of the procedure, or the
ineffectiveness of the procedure may be established following a decision of the PAC or the
findings of another control body, pursuant to Section 75 (2) f) of the Public Procurement Act.
If the conflict of interest is not
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may lead to the imposition of a financial correction for public procurement financed by EU
funds.
Paragraph (8) deals with the consequences of a situation where an economic operator (or a
related person or undertaking, e.g. a subsidiary) involved in the preparation of the procedure has
participated in the procedure. This situation should be treated differently from other conflict of
interest situations, in line with the rules of the Directive. Thus, special rules on the treatment of
the situation, in terms of legal consequences, apply in cases where prior involvement in
the preparation – and only in the preparation – is the cause of a conflict of interests. A
fundamental difference is that the prior participation of the economic operators concerned
in the preparation is not in itself prohibited, unlike the participation generally applicable to
other conflict of interest situations. However, since there is also a situation which could
constitute a conflict of interest, the contracting authority is still under an obligation to take the
measures necessary to ensure compliance with the principle of equal treatment. If the undertaking
concerned would gain a competitive advantage as a result of its prior participation, e.g. through
the additional information obtained, which cannot be obtained by other means, it may be
excluded from the procurement procedure. Before doing so, however, the contracting authority
must give it the opportunity to demonstrate that its participation in the preparation of the tender
does not prejudice equal opportunities and fair competition or to otherwise eliminate the
conflict of interest.
Paragraph 9 confirms, in the interests of legal certainty, that certain types of prior involvement of
interested economic operators do not generally give rise to a conflict of interest for
subsequent involvement. It is essential, however, that the contracting authority is still under an
obligation to take the necessary measures to ensure that the principles of equal treatment and fair
competition are not infringed in the procurement procedure.
To § 82
The Authority needs to have access to data on public procurement contracts financed by
European Union funds in order to fulfil its statutory tasks. Article 18 of the proposal already
provides for the Authority to request information from the bodies controlling public
procurement financed by EU funds. The addition to Article 36 of the Public Procurement Act
essentially creates the legal basis for this from the side of the Public Procurement Act,
stating that the public procurement monitoring body is entitled to transmit any data at its
disposal to the Authority .
To § 83
By 30 November 2022, Hungary has committed to the European Commission to make
searchable data on specific subcontractors involved in the performance of certain public
contracts available in the Electronic Public Procurement System (hereinafter: EPR). The ERA will
contain these data in a staggered manner for contracts concluded after the entry into force of the
provision. In order to ensure that these data are effectively available in the ERA, the amendment to
Article 43(2) of the Public Procurement Act requires contracting authorities to record the necessary
data in the ERA.
To § 84, § 87
Given that the proposal provides for the possibility for the Authority to suspend the public
procurement procedure in specific cases, the obligations of contracting authorities in case of such
suspension and the consequences of such suspension, in particular as regards the extension or
prolongation of the relevant time limits, are added to the CBA.
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To § 85, § 92
Based on Chapter IV of the proposal, the Authority shall establish and maintain a register of
economic operators excluded from public procurement procedures pursuant to Article
62(1)(a)(aa)-(aag) of the Public Procurement Act. As from the establishment of the register, the
five-year period of exclusion will cease to apply, in line with the provisions of the proposal,
and the period of exemption from the criminal record will no longer be relevant for the economic
operators registered, but the duration of the exclusion will be determined by the Authority. The
proposed maximum period of exclusion is four years. Accordingly, point (a) of Article 62(1) of the
Public Procurement Act refers to the duration of the exclusion period as determined by the Authority.
In addition, the period of exclusion is also adjusted in Article 62(2) of the Public Procurement Act.
In the event that an economic operator concerned is not on the Authority’s register, it will be
maintained, in order to ensure absolute compliance with the Directive requirement, that the
economic operator concerned will be excluded from participation in public contracts for a period of
four years following the final judgment, unless the economic operator concerned has been
exonerated of any criminal record and the Authority has set a shorter period.
To § 86
Under Chapter IV of the proposal, the Authority will also be responsible for assessing
applications for self-clearance in the case of economic operators excluded from public procurement
procedures under Article 62(1)(a)(aa)-(a) of the Public Procurement Act. In order to ensure a
uniform assessment of applications, the Public Procurement Authority will only have the power to
declare the appropriateness of self-cleaning measures in relation to other grounds for
exclusion. Accordingly, it is necessary to introduce a reference to the Authority in Article 64 of the
Public Procurement Act and to separate the competences of the two bodies in the text.
To § 88
In connection with the amendment of Article 43(2) of the Public Procurement Act, the Act also
requires tenderers to inform the contracting authority of the expected percentage of subcontracted
work within the tenderer’s performance and the value of the consideration under the subcontract. This
will ensure that the appropriate subcontracting data are uploaded into the ERA.
To § 89
By amending the Public Procurement Act, the proposal ensures that the President of the
Authority may also initiate ex officio proceedings before the ACPC in the context of public
procurement contracts financed by European Union funds. Public contracts financed by European
Union funds should be understood as public contracts financed or planned to be financed in whole or
in part by European Union funds, in accordance with the legal provisions defining the Authority’s
competences.
To § 90
Membership of the Public Procurement Authority Council will be extended to include a
representative of the Authority .
To § 91
Transitional provision on the entry into force of the obligations concerning the publication of
information on subcontracting and the notification of certain information on subcontracting to the
contracting authority.
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To § 93-94
The proposal makes it clear that the Authority, acting within the scope of its functions and powers,
has a privileged right of action in cases where the right of action derives not from the General Law or
the CP, but from the proposal.
To § 95-96
Unless otherwise provided for in a proposal, the rules of the Procedural Regulation shall apply to
the Authority’s public officials, and it is therefore necessary to make appropriatetechnical amendments
to the Procedural Regulation.
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