OMRI DAILY DIGEST
No. 57, 21 March 1997

HUNGARIAN FINANCE MINISTRY ACCUSED OF MISMANAGING FUNDS. According to
the State Audit Office, the Finance Ministry's management of its
settlement accounts--accounts that regulate debt payment to Hungary by
foreign governments--is inadequate and the credibility of the ministry's
data is questionable, Vilaggazdasag reported on 21 March. The Audit
Office also found flaws in the registration of incoming and outgoing
payments from 1993 to 1995. According to the report, records for several
billion forints lent by the ministry were missing. Also, the office
found that the ministry's use of credits from international bodies for
sector development was confusing. For example, $25 million from the
World Bank, originally intended to overhaul power plants in Borsod
County, was in fact spent on development in Budapest. -- Zsofia Szilagyi


[As of 12:00 CET]

Compiled by Susan Caskie