Thursday, 2 July 2026
The Hungarian government has published draft legislation that would establish a new independent authority with broad powers to investigate the use of public assets, oversee state-funded activities and prosecute certain financial crimes linked to public administration.
If approved, the National Asset Recovery and Protection Office (NVVH) would report directly to Parliament and combine investigative, supervisory and prosecutorial responsibilities within a single institution.
The proposed authority would oversee a wide range of activities involving public funds, including central and local government budgets, EU-funded programmes, state-owned enterprises, public procurement, concession agreements and projects financed through public resources.
Under the proposal, the NVVH would be able to launch investigations on its own initiative, following risk assessments, or in response to complaints or referrals from other authorities. Its powers would include requesting documents and electronic records, carrying out on-site inspections, analysing financial and registry data, consulting experts and coordinating with other public bodies.
The draft legislation would also require organisations managing public assets or receiving state or EU funding to cooperate with investigations. This obligation would extend to the disclosure of business, banking and tax information, subject to limited exemptions such as legal professional privilege and national security matters. Failure to comply could result in substantial administrative penalties.
Where investigations identify potential irregularities, the authority would be able to refer cases to other regulators or courts. It would also gain the right to initiate civil proceedings in the public interest, including actions seeking to invalidate contracts considered harmful to public finances.
One of the proposal’s most significant provisions introduces enhanced monitoring of companies that rely heavily on public contracts. Businesses and affiliated entities deriving at least 75% of their combined revenue from public procurement or concession contracts during any financial year within the previous five years would automatically be reported to the new authority by Hungary’s tax administration.
Where an investigation identifies a continuing risk to public assets, the draft law would allow the NVVH to place such companies under state supervision. The authority would be granted powers to oversee major financial commitments, replace company management and terminate certain financial agreements where considered necessary.
The legislation would also transfer prosecutorial responsibility for criminal offences related to public asset management and the exercise of public authority from the general prosecution service to the new office. In cases falling within its remit, the NVVH would be responsible for investigations, bringing charges and representing the prosecution in court.
The government proposes a phased implementation. Administrative and institutional provisions would take effect immediately after the law is published, while the authority’s criminal prosecution powers would become effective 60 days later. The government expects the new office to begin operating in early autumn 2026.
If enacted, the legislation is expected to have the greatest impact on companies involved in public procurement, concession agreements, state-owned enterprises, recipients of public or EU funding and businesses operating within government supply chains, all of which may face increased compliance and reporting requirements.
Source: CMS
