Education Minister István Hiller on Thursday suspended Equal Opportunity Director Tímea Borovszky, due to possible crimes and dereliction of duty.

Hiller notified the cabinet of his decision. He said a disciplinary inquiry found evidence of bribery and he has filed a report on the matter to investigating authorities. Borovszky has denied the charges. Several members of her department were reprimanded.

The inquiry began after Attila Nagy, head of the Katapult Mentor Project, designed to help disadvantaged university students, said in a letter to Hiller that the directorate was using 11-12% of its commission fee to pay companies and foundations affiliated with staff members, which had not performed any work.

Nagy claims that Borovszky asked him to hand over Ft 600,000 from a Ft 45 million subsidy to a colleague last April. Nagy's secretary and Nagy decided after several meetings not to comply with the instruction. A weeks-long investigation was then conducted, after which several of Borovszky's staff were fired.

Hiller said irregularities and shortcomings had been uncovered in the Equal Opportunities Directorate, but added that they "can and must be remedied within the ministry". Hiller said all reports from within and outside the ministry that he was aware of had been investigated.

Borovszky told Népszabadság that the inquiries have found that none of Nagy's claims are valid. She said she is certain that a police inquiry will also prove her right.

State secretary Gergely Arató, who oversaw the directorate from its foundation in 2006 until August last year, had an affair with Borovszky, according to rumours.