The Prime Minister’s Office spent nearly HUF 22 billion gross at Gyula Balásy’s companies between January and March – noticed K-Monitor is part of the government’s communication framework agreement from its quarterly newsletter.
The notification contains the total procurement of a net HUF 75 billion framework agreement. As K-Monitor writes, through this one-bidder agreement, almost all institutions linked to the state or supported by public funds conclude communication contracts. However, the largest part of the amount is spent by the cabinet office, mainly on government propaganda.
According to the notification published at the end of April, the Prime Minister’s Office led by Antal Rogán concluded 4 more contracts with Balásy’s companies, New Land Media and Lounge Design. The largest of these was a HUF 11.8 billion net public procurement, the purpose of which was to perform tasks related to “government communication on the international and domestic arena affecting the future of Europe” and “government decisions that have a major impact on the lives of citizens”. The other three public procurements had the same task as their goal: but for the second contract, only HUF 2.44 billion net, the third HUF 1.97 billion net, and the fourth HUF 1.02 billion net were awarded to Balásy’s companies.
The latter two were signed by the cabinet office shortly before the elections, on March 20 and March 30.
As K-Monitor noticed, the notice also mentioned the company publishing Mandiner, that Mandiner Novum Nonprofit Zrt., owned by MCC.also has a framework agreement. According to this, Mandiner plans to spend a net HUF 700 million at Balásy’s companies until June 30. MVM also spent money, but calculated in a somewhat longer term: according to the net HUF 4.84 billion framework agreement signed in January, the energy market giant wants to use the framework at Balásy’s companies until May 2028.
The government had already concluded the communication framework agreement with Gyula Balásy’s companies, but its amount of HUF 75 billion only became known last October. New Land Media and Lounge Design Szolgáltató Kft. are runners-up respectively in the tenders of the National Communications Office (NKOH), and they also won the new public procurement announced in August. This is not surprising, because tender conditions were set in the first place, which only a few companies meet. For example, only companies that have experience in government communication and have already participated in strategy creation, event organization and media agency tasks regarding social issues affecting the Hungarian population as a whole had the opportunity to apply. Since 2020, these tasks have been carried out almost exclusively by Balásy’s companies. In addition, applicants had only 15 days to put together their offers.
Until recently, Balásy’s companies performed governmental or similar communication tasks based on a framework agreement concluded in 2022. At that time, a contract for a total amount of HUF 75 billion was concluded for 12 months. However, an important detail of the contract is a built-in option, according to which, after the contract expires, it can be renewed twice, for an additional year, under unchanged conditions, with the same amount of HUF 75 billion.
