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The Horseshit Empire: How One Man Stole a Country and Called It Governance

Let’s start with the farm.

Christian Baghai · 2026-03-12 18:24 · 2 claps · 12.2 min read
#hungary #orban #corruption #ukraine-war
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Wiki topics: HIS · History 🐾 · Pets & Animals

The Horseshit Empire: How One Man Stole a Country and Called It Governance

Let’s start with the farm.

There’s a farm in rural Hungary, about 30 kilometers west of Budapest, that the Hungarian prime minister’s father built for himself with money he definitely earned through legitimate business activities. He runs a quarry, you see. A quarry. And over the course of a perfectly normal career in the exciting world of extracting rocks from the ground, he accumulated enough money to construct a six-thousand-seven-hundred-square-meter palace on land once owned by an Austrian archduke, complete with underground corridors, a private zoo, ten fully furnished apartments, restaurant-sized kitchens, a library, a club hall, a golf course at the front door, and a greenhouse bolted onto the top.

A quarry.

Now, a functioning adult human brain — even a mildly damaged one — can tell you immediately that something is wrong here. Quarry operators do not build Habsburg estates. That’s not a thing that happens. And yet in Hungary, for over a decade, the official explanation offered to the public was: yes, it’s just a farm, still under construction, belonging to a retired rock salesman who really loves building things. Move along.

They called it Hatvanpuszta. The opposition called it a scandal. The government called it private property. The police — the taxpayer-funded police — formed a perimeter around it. The government banned drones over private land so nobody could photograph it. And when an independent member of parliament finally chartered a plane to get aerial photos, what he saw looked less like a farm and more like a small, heavily fortified principality run by a man who has been legally poor his entire life.

That is the audacity. That is the opening act. It gets significantly worse.

The Math That Nobody In Power Wants To Do

Viktor Orbán’s father is named Győző. Győző runs a quarrying company called Dolomit Kőbányászati Kft. Since 2001, that company generated roughly twenty billion Hungarian forints in after-tax profit. Győző received approximately half of that as dividends — call it ten billion forints, or around twenty-six million euros. Every cent the man made in his entire career.

The minimum construction cost of Hatvanpuszta, calculated by journalists at the investigative outlet Atlatszo from leaked building permits and energy certificates, is between ten and eleven and a half billion forints. That’s the construction cost alone. No land. No zoo animals. No underground corridors. No landscaping for a thirteen-hectare estate that used to belong to Habsburg Archduke Joseph.

So according to the official story, a man spent his entire life’s earnings building a house. Then had nothing left over. For food. For the golf course. For the zebras. For anything.

The numbers do not work. They have never worked. And in a country with functioning institutions, a prosecutor, a free press, or a single government official capable of basic arithmetic and human shame, this would have been investigated, exposed, and prosecuted fifteen years ago.

Instead, what Hungary got was a confidential document, obtained in September 2025 by the investigative outlet Direkt36, revealing that the construction was largely paid for by Lőrinc Mészáros — Hungary’s richest man, childhood friend of Viktor Orbán, former pipe-fitter, former mayor of a village of two thousand people, current owner of a construction empire worth billions that receives the overwhelming majority of its revenues from government procurement contracts.

The document showed Mészáros’s company acting as financial guarantor for a 3.6 billion forint construction phase. The company transferred the money. Then formally surrendered all right to recover it. Just gave it away. To the prime minister’s father. For nothing in return.

Hungarian legal experts interviewed by Direkt36 said they had never seen anything like it. One lawyer, trying to articulate what made the arrangement so bizarre, put it this way: “The contractor and the developer agree that if the developer fails to pay, the contractor pays himself? What’s the point of that?”

The point, counselor, is that this is not a business transaction. It is a gift. Wrapped in paperwork. With a bow made out of plausible deniability.

The Village That Ate the European Union’s Money

Five kilometers northwest of the palace is a village called Felcsút. Population: roughly two thousand people. One mini-market. One hour from Budapest. Totally unremarkable, except for two facts: it is the birthplace of Viktor Orbán, and it is the birthplace of Lőrinc Mészáros. They grew up on the same street.

Since 2010, Felcsút has received a concentration of European Union and Hungarian state investment that is, per capita, essentially insane. Not for hospitals. Not for schools. Not for roads or jobs or anything that might improve the lives of the two thousand human beings who actually live there.

For a football stadium.

The Pancho Aréna seats four thousand five hundred people. In a village of two thousand. It was built for a football club co-founded and personally chaired by Viktor Orbán. It was funded through a scheme called the TAO tax redirect, which allowed corporations to divert their tax obligations directly into football clubs. Not donate. Divert. Meaning the money was never going to the treasury in the first place — it was rerouted from the public good into Orbán’s hobby before it ever got there, and the whole thing was called private investment. It is among the most elegant descriptions of theft ever codified into law.

There is also a narrow-gauge tourist railway of less than six kilometers, built with a two-million-euro EU environmental grant. In its first year, it ran zero passengers on ten consecutive days. Its annual losses were 12.3 million forints. The EU — the same EU that Orbán routinely denounces as a bureaucratic tyranny undermining Hungarian sovereignty — paid for a train that nobody rides to nowhere in particular.

There is also an artificial lake. The EU paid for this too, under the category of “anti-flood rainwater reservoir infrastructure.” The reservoir came equipped with an artificial island, a pedestrian bridge, a restaurant, a sports field, parking, and in winter, a free ice rink — built at no charge to the municipality by Fejér B.Á.L., a construction company owned by Mészáros and his children, whose initials form the company’s name, and which earned revenues of sixty-five billion forints in 2022 almost entirely from government procurement contracts.

So to summarize: the EU funds the lake, a Mészáros company builds the rink for free on the EU-funded lake, the same Mészáros company is building the palace five kilometers away, and the prime minister calls the EU a threat to Hungarian freedom.

Beautiful.

At the base of the palace, physically occupying the space between the Habsburg estate and the transformed village, sits the Pannonia Golf and Country Club. It is officially owned by Győző Orbán. It is managed by a company co-owned by Mészáros and by István Tiborcz — the prime minister’s son-in-law. The entire landscape, from the palace to the golf green to the village with its empty train and its EU-funded flamingo lake, is a single vertically integrated patronage ecosystem. It is feudalism. It has simply been rendered in the aesthetic language of regional development grants.

The Dynasty

István Tiborcz married Orbán’s eldest daughter Ráhel in 2013. He was, at the time, a young man of limited professional distinction. By 2025 he had become Hungary’s fifteenth richest person according to Forbes.

His first vehicle was a street-lighting company called Elios Zrt. Between 2010 and 2015, Elios won virtually every EU-funded public lighting tender in every city controlled by Fidesz. Not some. Not most. Virtually every one. The European Anti-Fraud Office, OLAF, investigated. Their conclusion: systematic, deliberate, structured tender rigging. The Hungarian prosecutor’s office — led by Péter Polt, an Orbán ally appointed to an indefinite term with no meaningful oversight — declined to press charges.

After selling Elios, Tiborcz pivoted to luxury real estate through BDPST Group. His portfolio is a property-by-property guided tour of prime Budapest, assembled always just ahead of, or concurrent with, the government’s designation of those exact locations as investment priority zones. The Exchange Palace on Liberty Square — fifty thousand square meters of historic Budapest, once the city’s stock exchange, purchased in January 2025 for approximately fifty million euros. Thirteen luxury apartments in the Fifth District, bought in a batch. A full floor of a Habsburg palace on Andrássy Avenue. The Mahart House on the Danube waterfront. Tura Castle northeast of the city, earmarked for a four-and-a-half billion forint renovation. Two hotels in Keszthely on Lake Balaton. The Keszthely harbor itself, acquired without a public tender.

The wife served as artistic director of the hotel renovations. The father-in-law maintained plausible deniability. Forbes printed the net worth figures. Nobody went to prison.

In February 2025, a documentary called The Dynasty attempted to trace how all of this happened. The government tried to suppress it before release. Fidesz MPs described the filmmakers as foreign agents. It accumulated two million views in forty-eight hours.

The Map Is Not Innocent

Look at Hungary on a map and you are looking at a landlocked country of ninety-three thousand square kilometers surrounded by seven neighbors: Austria, Slovakia, Ukraine, Romania, Serbia, Croatia, Slovenia. Standard Central European geography. Nothing unusual.

Except that every one of those seven borders has been turned into a foreign policy instrument.

The Austrian border — three hundred and sixty-six kilometers — is where oligarch capital exits Hungary on its way to Vienna, Switzerland, and Singapore. VSquare reported in September 2025 that Mészáros-linked figures had been accelerating transfers out of pro-government MBH Bank into foreign-owned institutions at a pace one senior banker described by saying: “If they’re opening accounts with us, imagine how much they’ve already wired abroad.”

The Slovak border — six hundred and seventy-eight kilometers — is managed through Robert Fico, Slovakia’s prime minister and Orbán’s most reliable EU internal ally, who joins Hungary in blocking Ukraine aid packages and undermining rule-of-law proceedings whenever Brussels applies pressure.

The Ukrainian border — one hundred and thirty-six kilometers — is the veto instrument. One hundred and fifty thousand ethnic Hungarians live in Ukraine’s Transcarpathia region. Orbán has invoked their rights to block Ukraine’s NATO accession, delay EU funding for Kyiv, and abstain on sanctions against Russia at every critical juncture, regardless of whether any of this was actually requested by the Transcarpathian Hungarians themselves. It is a minority deployed as a foreign policy prop.

The Serbian border — one hundred and fifty-one kilometers — anchors the Orbán-Vučić axis, a bilateral alignment formalized in a strategic defense cooperation agreement covering military projects, intelligence sharing, and Chinese Belt and Road investment. Together, Hungary and Serbia form a contiguous corridor of Moscow-aligned and Beijing-financed influence running from the Pannonian plain into the Balkans and aligned against the EU and NATO from within.

And through the middle of all of it: the Danube, Hungary’s main river artery, which Orbán has used as an infrastructure corridor for the Budapest-Belgrade railway — a two-billion-euro Chinese BRI project inserting Chinese logistics infrastructure into the heart of NATO territory, with no meaningful EU procurement oversight, because Hungary vetoed the relevant regulations.

This is not a country awkwardly navigating competing interests. This is a country that has been deliberately, methodically, architecturally positioned as a pivot state — inside the West on paper, aligned against it in practice, available to the highest geopolitical bidder.

The Spy Who Came in From the Permanent Representation

The property empire needed protection. The protection required intelligence. The intelligence required an operation.

Between 2012 and 2017, Hungary’s foreign intelligence service, the Információs Hivatal, ran a clandestine spy network embedded inside the European Union’s institutions in Brussels. It operated out of Hungary’s Permanent Representation to the EU — its official diplomatic mission. Its supervisor was Olivér Várhelyi, then Hungary’s ambassador to the EU, later an EU Commissioner in both of Ursula von der Leyen’s cabinets, because apparently nobody at the Commission thought to ask too many questions.

The core operative worked under diplomatic cover. His methods were, by the standards of Cold War intelligence tradecraft, embarrassingly crude: he approached Hungarian EU officials in parks, presented them with paperwork making them formal secret collaborators of Hungarian intelligence, and offered cash for internal Commission documents covering the exact proceedings — rule-of-law investigations, judicial independence reviews, fiscal disputes — that Hungary was simultaneously fighting in public while pretending to be a loyal EU member state.

The network’s most operationally important sub-mission was surveillance of OLAF investigators during their on-the-ground mission into Elios Zrt. — the tender-rigging street-lighting company owned by the prime minister’s son-in-law. Hungarian intelligence didn’t merely lobby against the investigation. It wiretapped the investigators. A dedicated unit was established within the IH for the specific purpose of intelligence operations targeting EU institutions.

The network collapsed in 2017 when the primary operative became so reckless in his recruitment attempts that exposure became unavoidable. When the full story was published in October 2025 by a consortium including Direkt36, Der Spiegel, De Tijd, and Paper Trail Media, the European Commission launched a formal internal investigation the same week. The European Parliament convened a security committee review. Várhelyi, asked to explain himself, offered no meaningful explanation. He remains a former EU Commissioner.

And then, in July 2021, the Forbidden Stories consortium published forensic analysis confirming that the Hungarian government had also deployed Pegasus — NSO Group’s zero-click phone intrusion software, which gives the operator complete access to every message, every photograph, every GPS coordinate, the microphone, the camera, all of it, in real time, without the target’s knowledge — against Hungarian journalists and civil society. Confirmed targets included the reporters who would later break the Brussels spy story, the owner of Hungary’s last cluster of independent media, and multiple lawyers.

The government denied using Pegasus for three years. A Fidesz MP confirmed the Interior Ministry’s purchase in parliament in November 2021. No one was charged. Péter Polt’s office found nothing actionable.

On March 8, 2026 — four days before this article was written — VSquare published a new investigation establishing that operatives linked to Russia’s GRU military intelligence had been entangled in the Brussels espionage operation. Hungary’s foreign intelligence service was not merely running parallel to Russian interests. It was operationally integrated with them. An EU member state’s spy service as a partial instrument of the Kremlin. Inside NATO. Inside the EU. For years.

What Happens Next

On April 12, 2026 — thirty-one days from now — Hungary holds a parliamentary election. Péter Magyar’s Tisza party leads among urban voters. Fidesz leads in the rural single-member constituencies that the electoral system, redesigned by Fidesz in 2011, weights so heavily that a party can win the popular vote and still lose the parliament. Orbán dominates the state media that floods the villages and small towns of the Great Hungarian Plain. As opposition MP Ákos Hadházy noted, approximately half of Hungarians have never heard of Hatvanpuszta. That is the information environment Fidesz built, and it is currently the most important piece of infrastructure they own.

A Tisza victory would unlock an estimated twenty billion euros in frozen EU cohesion funds. It would end Hungary’s de facto veto on Ukraine support. It would subject the Budapest-Belgrade Chinese railway to EU procurement rules. It would activate asset tracing proceedings against the most elaborate political enrichment architecture assembled by any democratic government in postwar European history.

Russia would lose its NATO veto agent. China would lose its EU beachhead. Mészáros’s procurement pipeline would face scrutiny for the first time. Tiborcz’s portfolio would be examined. Hatvanpuszta — the palace that officially doesn’t exist, built by a quarry operator who couldn’t possibly afford it, paid for by a childhood friend who expected nothing in return, guarded by police officers paid by citizens who don’t know it exists — might finally require an explanation.

And Felcsút, that village of two thousand people with a stadium twice its own size, a train that goes nowhere, a lake that floods nothing, and a golf course that wasn’t there fifteen years ago, might go back to being what it always was before one of its two famous sons decided to turn it into a monument to the fact that the game was rigged, the money was his, and the rules were whatever he said they were.

Which, of course, is the oldest story in the world. It just usually comes with a crown.

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