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The Chamber of Bailiffs, officially known as the Hungarian Association of Judicial Officers (MBVK), is facing an unprecedented legal turn of events: a final court ruling obliges them to pay approximately 1.9 billion forints (EUR 4.8 million) in connection with an IT development, but the chamber has not paid. Therefore enforcement proceedings can now be initiated against it; in other words, bailiffs may take action against the professional organization of bailiffs, reported Index.hu.
The case dates back to 2014, when the Chamber of Court Bailiffs commissioned the development of a new IT system from a company. According to information obtained by the HVG newsportal, the MBVK recently lost a complex legal battle that had been dragging on for years, in which the court ordered the organization to pay 1.1 billion forints plus interest—a total of approximately 1.9 billion forints—to Sysdata PSE Kft. However, the association failed to settle its debt by the payment deadline, hence the company filed an enforcement request against the MBVK on August 6.
The irony of the case is that the MBVK could, in theory, pay the HUF 2 billion. The organization had 9.6 billion forints in retained earnings at the end of last year, of which 7.4 billion forints (EUR 18 million) was in bank deposits. In other words, technically, the money is available, but the willingness to pay is lacking.
What makes the situation even more absurd is that the new IT system, on which billions were spent, is essentially complete but cannot be used. Due to the termination of the contract and litigation, the transition from the old system did not take place, even though this was mandatory under a 2019 law. Thus, the faculty found itself in a situation that violated not only financial but also legal regulations.
Via Index; Featured Image: Grok