BUDAPEST (Reuters) - The head of a Hungarian anti-corruption office tasked with stamping out fraud in the spending of European Union funds denied charges of misappropriation and abuse of power on Friday after authorities searched his office the previous day.

The Integrity Authority was created under EU pressure in late 2022 in a country that has had frequent quarrels with the bloc over rule-of-law issues. It is independent of Prime Minister Viktor Orban's government but had complained last year that it needed greater powers.

The chief prosecutor's office said late on Thursday that the head of the authority, Ferenc Biro, has been accused of misusing nearly 14 million forints ($35,000) by making his office rent two company cars for him, one of which was unlawfully used by his wife.

He is also accused of unlawfully curtailing some of the official powers of his deputies, the office said in a statement.

After searching several locations including the offices of the Integrity Authority and seizing evidence, "the Prosecutor General's Office questioned the chairman of the Integrity Authority as a suspect," the statement said.

Biro, a former partner of PricewaterhouseCoopers with two decades of experience of forensic accounting and compliance, denied the accusations in a statement to Reuters on Friday.

"The accusations are unfounded, I filed a complaint against them. I did not commit any crimes," Biro said in an email.

"I was attacked personally, which aimed at undermining the Integrity Authority. The operation of our organization has always been transparent and we have always worked according to the highest ethical and legal standards," he wrote.

The Integrity Authority said last year it has requested greater powers including for prosecutions, raids and sanctions. In a paper submitted to the Justice Ministry and the European Commission it complained that it lacks teeth to expose wrongdoing in the Eastern European nation.

($1 = 401.55 forints)

(Reporting by Anita Komuves; Editing by Frances Kerry)