Czech Prime Minister Andrej Babiš has once again faced accusations that he has not severed ties with his agricultural company; he promised to do so to avoid a conflict of interest both at home and in Brussels, according to Politico.
In December, before taking office as prime minister, Babiš promised to end all involvement in the operations of the agricultural giant he founded, Agrofert. The company is one of Europe’s largest producers of agricultural chemicals and animal feed. Babiš, fulfilling the request of Czech President Petr Pavel, also said that his children would take over Agrofert shares only after his death.
Babiš’s action was supposed to prevent a long-standing conflict of interest. During the politician’s previous term as prime minister, both the European Union and local regulatory authorities found that Agrofert had illegally received subsidies worth 208 million euros and suspended payments, also demanding repayment of the funding already received. The situation is also made more serious at the EU level by the fact that, as prime minister, Babiš is involved in the formation of the bloc’s long-term budget, which also includes agricultural spending, from which Agrofert previously benefited.
Now the question has arisen about the veracity of Babiš’s promise to withdraw from involvement in Agrofert’s operations. The prime minister emphasizes that he has done even more than the law requires.
A document describing Babiš’s future relationship with the company has become available to the general public,
and it states that a trust has been established and Babiš will not be involved in the company’s daily work only as long as he is in office. As soon as Babiš ends his political career, the trust will transfer the management of the company into the hands of his family. The document, created on the 17th of December, was first published by the Czech media outlet Seznam Zprávy. The document states that the trust is intended to ensure independent management of the company while the founder of the trust holds a government position. Once that period ends (either when Babiš leaves office or in the event of his death), the company will automatically come under family management.
Opposition lawmakers see the document as evidence that Babiš will remain closely linked to Agrofert, potentially influencing his decisions in both domestic and European politics. Olga Richterová, a spokeswoman for the Pirate Party, said on the 3rd of February that the news of Babiš’s unresolved conflict of interest is the icing on the cake, and just shows that you can’t teach an old dog new tricks. She noted that the same techniques will be used that were used when Babiš was last in office.
Danuše Nerudová, a member of the European Parliament, told Politico that the current solution preserves the possibility of protecting the interests of the family business. She noted that Babiš’s companies have previously benefited disproportionately from the EU’s agricultural subsidy program, and the desire to do so has not disappeared because the name of the entity has been changed.
The European Commission, given the impact on the bloc’s budget, has indicated that it is monitoring developments and has stressed the requirement that anyone appointed to a position in an EU member state has a duty to ensure that their private interests do not conflict with the interests of the bloc.
Babiš responded to the Seznam Zprávy publication in the Deník N newspaper.
He did not deny the authenticity of the document and that it is related to the preservation of family interests,
but indicated that he does not see anything wrong with it. The prime minister emphasized what he had previously said, that he had done more than the law requires, and that the shares of the company he built for 30 years would not return to him.
Speaking to the Czech news agency ČTK, the prime minister repeatedly defended his position, stating that the Agrofert shares would not return to him and that he would not benefit from them. The solution was fully compliant with European and Czech law, and accused critics of trying to take his property away.
The transfer of the shares to the trust has not yet taken place, as Babiš is awaiting approval from the financial institutions of two European countries. David Kotora, executive director of the Czech branch of Transparency International, said that the trust is currently an inactive shell, and even after it starts operating, the solution will still not meet EU standards.
On the 3rd of February, Babiš called the renewed attention a celebration of hypocrisy, and noted that this is not a defense of democracy, but political theater. Since no one can defeat him, a conflict of interest is invented.
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