Lőrinc Mészáros’ “Midas Touch” extends to railway electrification services

March 25, 2016

szaros

A company owned by lowly pipe-fitter turned billionaire Lőrinc Mészáros, a man many assume to be Prime Minister Viktor Orbán’s strawman, will be making some HUF 8 billion (USD 28.5 million) on electrical work performed on the Szombathely-Zalaszentiva trainline, reports the website of Hungarian weekly Figyelő.  The total cost of the services his company, R-Kord Kft., is performing reportedly exceeds initial estimates by some 40 percent.

According to Figyelő, R-Kord Kft.’s answering machine is overloaded. It won’t take any new messages. Mészáros purchased the company three years ago and was awarded the tender to undertake the electrification as part of a consortium with Swietelsky Vasúttechnika Kft.

The companies started working on the project a few days ago and are set to complete it this year. Information about the project was made public in a statement released by GYSEV Zrt. (the company that operates the trainline) and the Ministry of National Development. The statement did not include the names of the contractors working on the project.

R-Kord Kft. has yet to enjoy the kind of revenues that Mészáros’ better-known company, Mészáros és Mészáros Kft., has earned in recent years. In 2014, R-Kord Kft. enjoyed revenues of only HUF 1.27 billion (USD 4.52 million), compared to Mészáros és Mészáros Kft.’s HUF 10 billion (USD 35.6 million).