Brigadier General Sandor Laborc, head of Hungary's National Security Office, resigned on Monday, and Prime Minister Gordon Bajnai accepted his resignation.
The Prime Minister's Office said in a statement that Laborc's successor will be Brigadier General Laszlo Balajti, currently general manager of the Specialized National Security Service.
Laborc, who leaves his post on Sept. 1, cited the termination of the key points of an investigation into alleged wrongdoing involving security firm UD as the reason why he "will be unable to perform work of full value in the future."
The local wire service MTI reported that Laborc, whose appointment in November 2007 triggered a firestorm of protest because of his "close ties to the KGB," had initiated an investigation into security firm UD, a company responsible for computer security, on charges of illegal data gathering that involved hacking into government and private networks.
UD had been suspected of playing a role in an effort to depose the leader of the tiny conservative MDF party, Ibolya David, and replace her with someone more ready to cooperate with the center-right Fidesz party, Hungary's leading conservative force.
The National Bureau of Investigation (NNI) conducted a series of searches and seized multiple computers, servers and other items, initiating proceedings on charges involving violations of private security, unauthorized accessing of state secrets and hacking. All of these charges were dropped in the summer of 2009.
Still under investigation are charges of abuse of products and services used in military technology or usable for military as well as civilian purposes, influence peddling, abuse of office and abuse of personal data. Police reported that NNI has continued delving into these matters.
Laborc opposed halting any portion of the investigation, arguing that not all avenues of evidence gathering had been exhausted. He was apparently overruled, which triggered his resignation.