This analysis presents the irregularity data of the two funding cycles – the already concluded 2014–2020 period and the currently ongoing 2021–2027 period.
Number of companies: wide distribution of irregularities
During the 2014–2020 cycle, 2,138 different companies were subject to some form of irregularity procedure.
In the 2021–2027 cycle, 104 companies have appeared on the list of closed cases so far.
This shows that in the earlier cycle, irregularities were more dispersed and distributed across a wider range of actors. In the current cycle – although still ongoing – a more concentrated structure of irregularities is already beginning to emerge.
Affected support amounts: problems worth tens of billions
- In the 2014–2020 period, the amount affected by irregularities reached HUF 61.8 billion.
- In the 2021–2027 cycle so far, HUF 7.5 billion in funding has become subject to dispute.
Although the second cycle has not yet concluded, the amount already involved is substantial. Moreover, the average irregularity amount per company is higher in the 2021–2027 period, which may suggest that the nature of the abuses is more complex or severe.
How did the irregularity occur? – Modes of misconduct
In both cycles, the most common mode of irregularity was: “Other irregularities related to eligibility for support”
This label often serves as a catch-all category and typically includes:
- unfulfilled obligations,
- unsupported cost claims,
- or inadequate documentation.
In the 2014–2020 cycle, more classic issues also frequently appeared, such as:
- “Missing accounting documents”
- “Liquidation or bankruptcy proceedings”
The 2021–2027 data is currently less detailed, but the pattern appears to be similar.
Measures – What happened after the irregularity?
In both periods, by far the most commonly applied sanction was: “Withdrawal of the Grant Agreement”
This is the most severe measure in terms of consequences, as it results in the loss of the entire awarded support. It is typically applied in cases of intentional deception or serious omission. Beyond financial impact, this sanction can also cause reputational damage to the affected enterprises.
Who were the most affected companies?
In the 2014–2020 cycle, several companies were affected by irregularity amounts of several hundred million forints. These were mostly regionally based SMEs that carried out developments from EU funds. In the 2021–2027 cycle, no such sharp concentration has emerged yet, but corrections exceeding HUF 100 million have already occurred in several cases.
Average damages and conclusions
The numbers speak clearly:
In the 2014–2020 cycle, the average irregularity amount per company was approximately HUF 28.9 million.
In the 2021–2027 cycle, this value increased to HUF 72.3 million – more than 2.5 times higher.
This difference is no coincidence. In the earlier period – although nearly 2,500 cases were examined – the problems were predominantly minor, administrative-type errors. In contrast, the current cycle has brought to light fewer but more serious cases, which suggests that:
- regulations have tightened,
- monitoring has become more targeted,
- and the focus has shifted to larger-scale, intentional or structural violations.
This trend points not only to a change in grant culture, but also to the result of institutional learning: today, control bodies are more conscious and effective in identifying systemic abuses. At the same time, higher-risk irregularities come with greater financial losses – which means that prevention and careful execution are now more important than ever.
Summary
Irregularities related to GINOP support offer insights not only into the maturity of grant practices, but also into the evolution of control mechanisms. The 2014–2020 cycle can be considered a learning phase in handling irregularities, while the 2021–2027 period shows signs of stricter, more focused monitoring.
Looking ahead, it is essential that companies not only focus on writing grant applications, but also pay increased attention to proper implementation and accounting.
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