The Czech Republic will soon have a new head of government: former Prime Minister Babis – and he also has an old problem: his conflicting interests as a politician and a businessman. Now the Czech president is increasing the pressure.
It’s not just Andrej Babis who will return to the Czech Republic. One of his biggest critics is also back. Mikulas Minar once again became the head of the citizens’ movement “A Million Moments for Democracy”.
While still a student, the 32-year-old organized the biggest mass protests since 1989. Six years ago, 250,000 people demonstrated against Prime Minister Babis.
Now, on the 36th anniversary of the “Velvet Revolution,” thousands cheer the Minar in Prague. “We cannot accept that we are ruled by people who are in conflict of interest. People who abuse the power entrusted to them to obtain billions of crowns in subsidies for their companies or for their sponsoring companies,” Minar said.
The Prime Minister will continue to provide benefits to Babis
The main focus is on Babis and his Agrofert group. The company is one of the largest private companies in the Czech Republic and one of the largest recipients of European Union subsidies. After political changes in 1989, former communist foreign trade representative Babis founded the company. He was never able to credibly explain where the initial capital came from.
Babis, who was born in Slovakia, is now one of the richest people in the Czech Republic. Agrofert covers more than 200 companies, especially in the agricultural, food industry and chemical sectors. In Germany, Babis owns the Piesteritz nitrogen plant and baked goods producers Lieken and Golden Toast.
As prime minister, Babis will continue to benefit from public money and have a say in its distribution, a classic conflict of interest. President Petr Pavel called for a solution before appointing Babis. “We know from Andrej Babis’ previous term in office that conflicts of interest were a problem during his four years in power. I demand that he be clear and transparent about how he works so that the public can get an idea. We have learned our lesson and cannot let it pass,” said Pavel.
The conflict could become a problem for the entire Czech Republic
From 2017 to 2021, Babis outsourced his group of companies into two trust funds. However, he was still in control; His wife sits on the supervisory board. Czech courts have found this, as has the European Union Commission. Therefore, the government of Petr Fiala, whose term of office is ending, is currently demanding the return of almost 300 million euros of public money from Agrofert. “Andrei Babis’ company mistakenly received subsidies of around seven billion crowns during his first term in government, and now they have to return them,” Fiala said. This is money that should go to citizens or other companies that make claims.
The president warned that the potential prime minister’s conflict of interest could also be a problem for the Czech Republic. If Babis offers only false solutions again, Brussels could freeze or cut subsidies. The populist ANO should field another candidate, says former NATO general Pavel. But right now it doesn’t look like that. Businessman Babis founded the party. It is completely tailored to him.
Babis himself rejected all criticism: “I think the atmosphere in some media is so tense that they will write that I have a conflict of interest even if I die. I have said that I am investigating it and this will be in line with the views of the Czech courts and the European Commission.”
Babis is playing with time
However, the Czech election winner only wanted to present his solution when his appointment as head of government was imminent. He then has 30 days to end his conflict of interest.
Most lawyers think that Babis cannot simply transfer his Agrofert group to his family members, but that he must sell it or at least transfer it to a trust fund that has no influence over him, which is called a blind trust. However, Andrej Babis wants to return to office in mid-December, in time for the next EU summit in Brussels.
