Closing of investigation No VIZSG_2_2024 – Fruit-processing plant in Balatonfüreden

In the case of the fruit-processing plant project in Balatonfüred, the Integrity Authority has identified financial irregularities and operational deficiencies, and noted that the unduly permissive conditions in the call for applications could potentially jeopardise the effective use of EU funds. 

The Integrity Authority has concluded its investigation into the HUF 53.9 million project titled “Construction of a fruit-processing plant in Balatonfüred”, supported under scheme VP3-4.2.1-4.2.2-18. The Authority’s investigation found that in the case of the Beneficiary’s invoices totaling HUF 24.5 million, the market price was allegedly supported by fictitious countertenders, and that another invoice of HUF 254,000 was presumably issued by a non-independent firm.

On-site audit and operational deficiencies 

A joint on-site audit by the Authority and the Hungarian State Treasury confirmed that the project had been completed; however, it found that in the absence of employees present on site, the operations of the plant were limited to trial runs. Production in the first nine months of the five-year maintenance period was only a fraction of the originally planned quantity, with no sales taking place.

Permissive call for applications 

Neither the call for applications nor the Granting Decision contained clear requirements for operations or production volumes; therefore, the project could be considered complete despite its low level of utilisation. The Authority maintains that this amounts to the inefficient and ineffective use of EU funds, thereby violating the principle of the efficient and responsible management of public funds.