58. What sanctions are provided for political finance infractions?

Greco Eval III Rep _2009_ 8E Final Hungary PF PUBLIC

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Pursuant to the Party Act (sections 4, 6 and 10) political parties that have accepted a pecuniary contribution by violating the financing rules (for example, from forbidden business activities or from anonymous donors) are obliged to pay the sum of that contribution – on demand of the SAO – to the state budget within fifteen days. In case of delay, the debt will be collected by the same procedure as taxes are collected. In addition, the budgetary subsidy of the party is to be reduced by the sum of the pecuniary contribution accepted, following a proposal of the SAO to the Ministry of Finance. The Ministry of Finance reports annually on the execution and the SAO controls it in a second audit.

It follows from the Electoral Procedure Act (section 92) that a political party or an independent candidate that has exceeded the spending limit of one million HUF (approx. 4000 €) per candidate that applies in general elections in addition to the state subsidy, is obliged to pay double the amount by which it has exceeded the defined limit, within 15 days, to the central budget. In case of delay, the debt shall be collected as tax.

If the SAO during audit comes across suspicion of a criminal offence, it has to notify the competent authorities and this may lead to action by the public prosecutor. Criminal sanctions 16 may be imposed if the Criminal Code so prescribes. Imprisonment and fines may be applied against natural persons; legal entities may face fines and other sanctions applied by a criminal court under Act CIV of 2001 on criminal measures applicable against legal entities. Moreover, violations of party financing laws may trigger criminal procedures for fraud, embezzlement, tax fraud, bribery, forgery of documents, misappropriation of funds etc. These crimes may be prosecuted ex officio or on the initiative of anyone (SAO Act, section 25; ARA, section 14 (2), 16 and the Civil Code, section 74/F (2)).