Hungarian media tycoon set up Dubai company while under investigation over state contracts

Hungarian media tycoon set up Dubai company while under investigation over state contracts Hungarian media magnate Gyula Balásy, whose companies became central to Viktor Orbán's state communications and political campaign machinery, established a subsidiary in Dubai in 2024 while his business empire was already under investigation by Hungarian authorities over allegedly overpriced government contracts. Corporate documents reviewed by OCCRP and Átlátszó show that Balásy's New Land Media established the United Arab Emirates-based subsidiary in October 2024. At the time, Hungarian investigators were already examining companies linked to Balásy over suspicions of financial misconduct involving lucrative state contracts. Balásy also owns a luxury apartment in Dubai, according to property records obtained through the Dubai Unlocked investigation. The apartment was purchased for approximately 3.2 million UAE dirhams, or around $870,000. The purchase process began in May 2023, while the property was formally registered as completed in 2025. There is no evidence that the Dubai company, the apartment purchase, or any transfer of funds between Balásy's companies was illegal. The Hungarian investigation has not resulted in criminal charges against Balásy. But the timing of the Dubai subsidiary's creation and a subsequent transfer of roughly 1.3 billion forints – nearly $4.2 million – to a company subsidiary raises questions about the movement of money within a business empire that depended heavily on Hungarian state contracts. The revelations come at a politically sensitive moment in Hungary, where the new government of Prime Minister Péter Magyar has pledged to investigate alleged corruption and the misuse of public money during Orbán's 16-year rule. Balásy has strongly rejected any suggestion that he concealed assets or acted unlawfully. 'I do not wish to comment on the details of the individual transactions,' Balásy said in response to questions from OCCRP and Átlátszó. He said his companies were cooperating fully with Hungarian authorities and had provided investigators with all requested documents and information. 'I strongly reject any allegation or suggestion that I have absconded or hidden any assets,' he said. A business empire built on government contracts For more than a decade, Balásy's companies were deeply embedded in the Hungarian government's communications apparatus. His network of advertising, public relations and event-management companies, collectively known as Lounge Group, handled major state communication campaigns under Orbán. The companies were involved in media buying, advertising, public events and government outreach. Their campaigns often promoted the political priorities of Orbán's administration and targeted some of its most prominent political opponents and perceived enemies, including migrants, Ukraine, the European Union, LGBTQ+ communities and Hungarian-American billionaire George Soros. New Land Media, one of the most important companies in Balásy's network, specialized in planning and purchasing advertising space. It effectively helped determine where government campaigns appeared across television, radio, newspapers, websites, billboards and other media. Investigations by Átlátszó and other Hungarian media outlets have found that substantial portions of the government's advertising expenditure were directed toward media outlets supportive of Orbán and his Fidesz political movement. The companies' relationship with the state was therefore not simply commercial. They occupied a strategically important position within the political communications system that Orbán developed during his years in power. That relationship also made the companies major beneficiaries of public spending. Investigation was already underway The timing of the Dubai expansion is significant because the Hungarian investigation was not new when New Land Media established its UAE subsidiary. In April 2024, Hungary's chief prosecutor announced that the National Investigation Bureau of the Emergency Police had opened an investigation into alleged misappropriation of public funds and other offenses involving companies that had received government communications contracts. A separate investigation was also launched over suspicions that government contracts had been overpriced. Yet only six months later, in October 2024, companies linked to Balásy won another major state communications framework agreement worth up to 75 billion forints, approximately $243 million. The contracts continued to flow to Balásy's companies until Orbán was defeated in national elections this year. Against that background, the creation of a Dubai subsidiary stands out as a significant development in the structure of Balásy's business empire. Corporate records show that New Land Media established the Dubai company in October 2024. According to its UAE business license, the company operates in 'Education & Training Computer Software.' It remains unclear what business the Dubai subsidiary actually conducted, how much money it received, or whether it played any significant role in Balásy's wider corporate structure. Balásy declined to explain whether the Dubai company received funds from New Land Media. $4.2 million in long-term loans The financial records raise another unresolved question. In 2025, New Land Media reported providing approximately 1.3 billion forints — nearly $4.2 million — in long-term loans to a subsidiary. At the time, company records listed only two subsidiaries: one in Hungary and the newly established company in Dubai. However, the financial statement of the Hungarian subsidiary does not show that it received those loans. That leaves open the possibility that some or all of the funds may have been transferred to the Dubai operation, although the available records do not establish that conclusively. Balásy was asked directly whether the money had gone to the Dubai subsidiary but declined to clarify. The uncertainty is particularly notable because Hungarian authorities had already been investigating Balásy's companies for suspected financial irregularities. There is, however, no evidence that the transfer violated Hungarian or UAE law. Balásy said that all transactions involving his companies and outside parties had been conducted within what he described as a 'strictly controlled, approved legal and financial framework.' He said all of his investments, whether in Hungary or abroad, complied with applicable laws and tax regulations. The Dubai property The Dubai subsidiary is not Balásy's only connection to the UAE. Property records obtained through Dubai Unlocked show that he owns a luxury apartment in the city. The purchase process began in May 2023, when Balásy agreed to acquire the property for approximately 3.2 million UAE dirhams, equivalent to around $870,000 at the time. The purchase was formally completed and recorded in 2025. The property acquisition predates the creation of the Dubai subsidiary by more than a year, although it occurred before Hungarian authorities publicly disclosed the investigation into Balásy's companies. Balásy did not provide details about the apartment or explain its relationship, if any, to his business activities in Dubai. He said only that he did not wish to comment on his private investments. There is currently no indication that Hungarian investigators consider the apartment part of their case. Frozen accounts and political change The investigation took on a new dimension after Orbán's defeat in national elections this April. Authorities subsequently froze the bank accounts of several companies connected to Balásy. In a television interview in May, Balásy became emotional while discussing the seizures. He offered to hand control of his business empire to the Hungarian state and insisted that he had nothing to hide. The National Investigation Bureau later confirmed that company accounts had been frozen as part of an investigation involving alleged misuse of public funds and money laundering. Investigators also confirmed a separate inquiry into suspected overpriced contracts involving the group of companies. The new government has since intensified efforts to examine alleged abuses committed under the previous administration. Magyar, who built his political career by breaking with Orbán's Fidesz establishment, has repeatedly promised to dismantle what he describes as a system of political patronage and state-controlled propaganda. He has also pledged to investigate the use of public money under Orbán. Last week, his administration established the National Asset Recovery and Protection Office, tasked with examining suspected misuse of public funds. Fresh raids add to pressure The scrutiny surrounding Balásy's companies intensified again on September 1, when Hungarian authorities raided the premises of several companies linked to him. The raids followed reporting by Átlátszó concerning the distribution of toy vehicles in Hungarian nurseries under a government program. The investigation raised questions about whether the toys had been purchased at inflated prices. Balásy did not respond to questions concerning the raids. The developments place his business empire under unprecedented pressure. For years, Balásy's companies operated at the heart of a government communications system that distributed billions of forints in public money. Their access to state contracts expanded even after authorities had begun investigating allegations concerning those contracts. Now, with accounts frozen, company premises raided and investigators examining possible financial misconduct, the structure of Balásy's business operations is receiving much closer scrutiny. The Dubai connection adds another layer to that examination. The creation of a UAE subsidiary while the Hungarian investigation was underway, the existence of a multimillion-dollar Dubai property, and the subsequent disclosure of more than $4 million in long-term loans to a subsidiary all raise questions about how Balásy's wealth and corporate assets were structured across borders. But those questions remain unanswered. Neither the Dubai subsidiary nor Balásy's property has been publicly linked by investigators to any criminal activity. And Balásy maintains that his investments and business transactions have always complied with the law. For now, the Hungarian investigation remains ongoing, and authorities have not charged Balásy with a crime. What remains to be established is whether the Dubai company and the movement of funds between Balásy's businesses were simply legitimate elements of an international corporate structure — or whether they form part of a larger financial picture that investigators have yet to fully uncover. Please follow Blitz on Google News Channel