Mayor Gergely Karácsony and the left-liberal wing of the Capital Assembly have been unable to agree on the filling of positions since the elections, which could paralyze Budapest.
If no compromise is reached, Budapest's companies may not only face the risk of a legal but also an operational crisis. And the consequences will be felt most by the residents of the capital.
The mandates of the board members and supervisory board members of the companies maintained by the Budapest municipality will soon expire.
At the same time, Mayor Gergely Karácsony's negotiations with the factions and the stakeholders so far have not led to any results.
If it is not possible to elect new members in time, it can have serious consequences both for the operation of the companies and the financial situation of the city.
According to the legislation, the board and supervisory board members are responsible for the legal and efficient operation of companies. The board of directors decides on operational matters, while the supervisory board controls the management and ensures that the laws and the interests of the owners are respected. If their mandate expires and no new members are elected, companies cannot make valid decisions, thus
the completion of many strategic and operational tasks may be hindered.
If the company's management continues to operate with an extended or expired mandate, it may seriously violate the legal requirements. This can lead not only to legal problems, but also significant financial penalties.
Due to illegal operation, for example, the conduct of public procurement becomes questionable, which can delay the development of public services. The validity of contracts becomes open to attack, which can lead to a loss of trust among suppliers and partners. Funding for companies can get stuck due to legal uncertainties. In other words, the capital's most important companies
financing may also be in jeopardy as a result of the negotiations.
Capital city companies may find themselves in a difficult situation in the near future because Mayor Gergely Karácsony and the left-liberal wing of the Capital City Assembly have been unable to agree on the filling of positions since the elections. The Tisza Party went so far as to withdraw the tenders announced by the mayor for the positions in question at the October general meeting.
Cover image: Karácsony is not very interested in the fact that the capital could be paralyzed
Source: Facebook/Gergely Kárácsony
