Hungary’s foreign influence agency investigates Transparency International

Transparency International Hungary said on Tuesday (25 June) that the country had been targeted by a controversial new agency set up under the government of nationalist Prime Minister Viktor Orbán to curb foreign influence.

The Office for the Protection of Sovereignty began its work in February. Critics feared it could have a “chilling effect” on the democracy of the Central European country.

The European Commission has initiated infringement proceedings against Hungary because of the establishment of the agency.

The office informed Transparency International Hungary last week that it was “launching a targeted – and comprehensive – investigation into our activities,” the anti-corruption group said in a statement.

The Sovereignty Protection Office “asked a total of 62 questions in its six-page official letter and gave us 30 days to respond,” it said.

“We hereby reiterate our position that this law serves the government’s intention to intimidate citizens and civil society organizations critical of the government while disguising it as an alleged protection of national sovereignty,” the group said.

When asked by AFP, the office declined to comment.

The media company Atlatszo, known for its corruption investigations, is also in the agency’s sights and has been asked to clarify its relationship with Transparency International Hungary.

In December, Atlatszo said in a statement that the law was “likely to massively restrict press freedom” and could “make the work of independent editorial offices, journalists and media companies more difficult or even impossible”.

Months later, in April, politician Péter Magyar, a former government insider and current government critic, said the office had launched an investigation against him.

The office has the authority to “identify and investigate organizations that receive funds from abroad aimed at influencing the will of the voters.”

Orbán’s Fidesz party argues that the law will close “a legal loophole” of “electoral fraud” following allegations that opposition parties received funds from a US-based NGO in the run-up to the 2022 elections.

While the Sovereignty Protection Office can collect information, cooperate with government agencies and prepare reports, it does not have the power to impose sanctions on anyone on its own.

However, the results of the investigation could be used to prosecute election candidates who accept foreign funds, as they could face a prison sentence of up to three years under Hungarian law.

Since returning to the EU member state’s leadership in 2010, Orbán has taken steps to restrict civil liberties and made other changes to consolidate his grip on power, often clashing with Brussels over rule of law issues.

Hungary, which ranks last among EU members in Transparency International’s corruption index, will hold the EU Council Presidency every six months from 1 July.