The Budapest Metropolitan Police (BRFK) have launched a criminal investigation into alleged fraud at the Budapest branch of Ankara’s Yunus Emre Institute, local news portal 24.hu reported on September 8.

The case could unveil the Hungarian arm of an international scandal involving several countries, the daily said. A larger series of international crimes may lie behind it, an unnamed insider, who has a perspective on Turkish-Hungarian cultural relations, was quoted as saying.

The institute is a state-funded flagship soft-power tool, launched in 2007 by then Turkish PM and current president Recep Tayyip Erdogan, to project his cultural influence abroad. It stands accused of systematically misusing personal and commercial data belonging to Hungarian citizens over several years.

Internal police records suggest that multiple Hungarian individuals were listed as paid employees of the institute’s grand facility, located on Budapest’s prestigious tree-lined boulevard Andrassy Avenue, without their knowledge or consent.

The employee not aware he’s an employee

In one stark account detailed by the publication, a Hungarian literary expert who previously undertook brief and freelance technical roles at cultural events for modest sums, was called to the institute in June. Expecting an introductory chat with incoming management, the individual was instead met by three officials dispatched from Ankara.

The auditors presented documents showing the figure listed as a full-time and salaried employee, with a role that he denied ever having or receiving compensation for. However, paper records stated that he received a Hungarian forint (HUF) 0.4mn ($1,276) monthly salary over a two-year period.

Metadata embedded in the audited transcript indicated that the document was drafted by Veysel Akarslan, head of financial and administrative affairs at the institute's headquarters in Ankara.

Following the meeting, the individual filed a formal complaint with Hungarian law enforcement, triggering the BRFK's criminal fraud investigation. Hungarian police confirmed that the probe was under way, adding that no suspects had yet been formally questioned.

The Hungarian allegations have surfaced amid broader scrutiny of potential financial irregularities within Yunus Emre Institute's international operations, which span dozens of cultural centres globally and operate on a budget running into the hundreds of millions of Turkish lira.

The investigators refrained from outlining the full scope of potential financial exposure as the gathering of evidence continued.

Turkish journalist reported fraud claims

Turkish journalist Ismail Ari, who investigated the alleged fraud at the institute, was temporarily imprisoned, while a former director of the Budapest branch, thought to be facing allegations that he was involved in claimed offences, was appointed director of the Lebanon branch, 24.hu also reported.

The branches in Germany, Poland and Iraq are also under investigation according to the Hungarian publication.

In 2024, Ari, who works for Turkish daily Birgun, reported a claimed fraud committed with fake invoices at Yunus Emre Foundation, which manages the institute.