Statement by MABOFI on the Recent Raids on Emfesz's Offices and the Arrest of Mr Istvan Goczi

Mr David Brown, the Director of Mabofi, the 100% legal owner of Emfesz, has commented on the raid last week of Emfesz’s offices by the Hungarian National Investigation Bureau (NII) and the arrest of Mr Istvan Goczi by the Hungarian police authorities as part of their ongoing criminal investigation into the fraudulent transfer of Emfesz to Rosgas, a Swiss-based shell company with no disclosed beneficial ownership.

“We are encouraged by these significant and positive developments in the ongoing investigations being conducted in Hungary into the theft of Emfesz. The raid and the arrest of Mr Goczi follow several months of investigative work carried out by the Hungarian Authorities” said Mr Brown.

Mr Brown added: “We have seen it reported in certain media that the offices of Emfesz were also the subject of a search by the European Commission’s Directorate General for Competition (DG Competition) as part of their own separate investigation into the matter. If these reports are confirmed this would be particularly significant as they confirm what we have been saying about the serious nature of this fraud, the way it was carried out and its potential impact on Hungary’s energy sector. As we said in our earlier statement on 15 May 2009:

“the fact that the Hungarian authorities were able to approve the transfer of an important and strategic energy company in a matter of a few hours, without appropriate documentation, without the consent of its founding and legal shareholder, and without ascertaining the ownership of the acquiring company, undermines not only the rule of law and investor confidence in Hungary, but it is also undermines the country’s energy security.””

(“Mabofi Expresses Concerns Over The Role Of Hungarian Authorities In The Fraudulent Transfer Of Its 100% Shareholding In Emfesz To Rosgas” - 15.05.09.)

“Mabofi will continue to cooperate with the Authorities in Hungary and elsewhere to assist them with their investigations into the theft of Emfesz as we are keen that the ownership of Emfesz should be restored to Mabofi as soon as possible.”

Mr Brown added: “Meanwhile, we are continuing with our own necessary and appropriate legal actions against Mr Goczi and all other persons and entities involved in the fraudulent transfer of Emfesz and will vigorously protect our interests to recover ownership of Emfesz and to secure damages that have resulted from this fraud.”