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Posted inCentral Europe & Baltics, Regions

HUNGARY: Privatization Scandal Threatens Coalition

Revelations that Hungary’s privatization agency paid $5.1 million to an outside consultant have led to the country’s biggest political scandal yet. The illegal payment fiasco – in which state money was most likely destined for party election funds – shook trust in the government and heightened suspicions that corruption is rife throughout state agencies, jeopardizing the governing coalition’s success in the 1998 elections