US Sanctions Orban’s Top Aide Rogan for Alleged Corruption
(Bloomberg) -- The US sanctioned Hungarian Prime Minister Viktor Orban’s influential cabinet chief for his alleged role in corruption, just days before Orban’s ally Donald Trump enters the White House.
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The official, Antal Rogan, has a powerful portfolio in Orban’s administration. He oversees the security services and holds sway over the state media apparatus, which has helped the premier secure consecutive electoral victories since 2010.
The decision is the toughest move yet by the US or any Western capital targeting Orban’s inner circle, which has for years battled accusations of cronyism and graft. The move may face a challenge though from the incoming Trump administration given the Hungarian prime minister’s close ties with the next US president.
“Throughout his tenure as a government official, Rogan has orchestrated Hungary’s system for distributing public contracts and resources to cronies loyal to himself and the Fidesz political party,” the US Treasury Department said in a statement Tuesday.
Hungary has dropped to the bottom of Transparency International’s corruption rankings among European Union states during Orban’s nearly 15 years in power. It also lost access to some of the EU’s aid over graft concerns.
The Hungarian government said the US move amounted to “petty retaliation” for Orban’s backing of Trump in the US election, adding that it expected the measures to remain in force for “at most a few weeks,” according to state news service MTI.
Frozen Funds
The Hungarian prime minister’s cabinet office said in a statement that it will “take the necessary legal steps” after Trump is inaugurated on Jan. 20.
Orban’s Fidesz has lost its lead in the polls against the upstart Tisza Party, which has capitalized on corruption allegations ahead of next year’s parliamentary elections.
The EU froze about €19 billion ($19.7 billion) in funds for the country due to concerns over graft and the rule of law. Another €1 billion in aid was permanently lost last year over the same issues.
“Antal Rogan is a primary architect, implementer and beneficiary of this system of corruption,” outgoing US ambassador to Hungary David Pressman told reporters in Budapest on Tuesday.
The Treasury sanctions block any of Rogan’s assets in the US and prohibit any entities under US jurisdiction from doing business with him. Financial institutions that provide services to Orban’s aide are now at risk of sanctions violations.
Hungary’s forint briefly reduced the day’s gains after the US announcement, trading close to a 2-year low against the euro.
--With assistance from Veronika Gulyas, Daniel Flatley, Zoltan Simon and Ramsey Al-Rikabi.
(Updates with government reaction starting in the fifth paragraph.)
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