Berliner Boersenzeitung - Businessman or politician? Billionaire Czech PM under fire again

EUR -
AED 4.240369
AFN 72.15222
ALL 96.010337
AMD 436.919504
ANG 2.066474
AOA 1058.793523
ARS 1611.346204
AUD 1.619451
AWG 2.081217
AZN 1.956813
BAM 1.954992
BBD 2.322141
BDT 141.961354
BGN 1.902418
BHD 0.435943
BIF 3443.207399
BMD 1.154628
BND 1.475803
BOB 8.002694
BRL 5.953725
BSD 1.159021
BTN 106.671933
BWP 15.538581
BYN 3.421487
BYR 22630.709035
BZD 2.32374
CAD 1.569088
CDF 2514.779555
CHF 0.902925
CLF 0.02624
CLP 1036.117313
CNY 7.927964
CNH 7.941814
COP 4277.400294
CRC 546.088594
CUC 1.154628
CUP 30.597642
CVE 110.219467
CZK 24.401878
DJF 206.38474
DKK 7.472313
DOP 70.322776
DZD 152.019482
EGP 60.501383
ERN 17.31942
ETB 179.476842
FJD 2.542721
FKP 0.861459
GBP 0.862986
GEL 3.134839
GGP 0.861459
GHS 12.557812
GIP 0.861459
GMD 84.865656
GNF 10160.978406
GTQ 8.886329
GYD 242.829685
HKD 9.03661
HNL 30.67999
HRK 7.534179
HTG 152.079809
HUF 387.852834
IDR 19508.768085
ILS 3.611873
IMP 0.861459
INR 106.414793
IQD 1518.082222
IRR 1526158.440873
ISK 144.802275
JEP 0.861459
JMD 181.545788
JOD 0.818637
JPY 183.472718
KES 149.235293
KGS 100.972297
KHR 4652.158731
KMF 491.871195
KPW 1039.203539
KRW 1708.901395
KWD 0.354321
KYD 0.96568
KZT 569.203375
LAK 24825.626652
LBP 103846.100171
LKR 360.285917
LRD 212.092383
LSL 18.976577
LTL 3.409316
LVL 0.698422
LYD 7.371955
MAD 10.850618
MDL 19.986743
MGA 4805.015002
MKD 61.626888
MMK 2424.742133
MNT 4122.187229
MOP 9.342467
MRU 46.280084
MUR 53.008821
MVR 17.838953
MWK 2009.669786
MXN 20.47174
MYR 4.534194
MZN 73.792291
NAD 18.976577
NGN 1612.160702
NIO 42.653118
NOK 11.181475
NPR 170.679925
NZD 1.957112
OMR 0.443952
PAB 1.159021
PEN 3.972159
PGK 4.994002
PHP 68.655391
PKR 323.852513
PLN 4.26462
PYG 7511.896763
QAR 4.226054
RON 5.093531
RSD 117.396804
RUB 91.506257
RWF 1693.600357
SAR 4.332422
SBD 9.289193
SCR 16.157733
SDG 693.931492
SEK 10.71179
SGD 1.473265
SHP 0.86627
SLE 28.4012
SLL 24211.971348
SOS 661.229703
SRD 43.267957
STD 23898.468664
STN 24.490201
SVC 10.139538
SYP 128.022081
SZL 18.975161
THB 36.770303
TJS 11.109011
TMT 4.041198
TND 3.396597
TOP 2.780068
TRY 50.935488
TTD 7.863764
TWD 36.731256
TZS 3002.032787
UAH 51.094292
UGX 4282.230969
USD 1.154628
UYU 46.620741
UZS 14079.415542
VES 505.331309
VND 30335.541759
VUV 138.091343
WST 3.13415
XAF 655.68613
XAG 0.013274
XAU 0.000223
XCD 3.12044
XCG 2.088575
XDR 0.815463
XOF 655.68613
XPF 119.331742
YER 275.496587
ZAR 19.12766
ZMK 10393.037421
ZMW 22.542687
ZWL 371.789749
  • RBGPF

    0.1000

    82.5

    +0.12%

  • CMSC

    -0.0100

    23.24

    -0.04%

  • BP

    1.6200

    41.56

    +3.9%

  • BCE

    -0.5000

    25.89

    -1.93%

  • RIO

    0.4000

    92.08

    +0.43%

  • CMSD

    0.0700

    23.15

    +0.3%

  • RELX

    -0.4300

    34.76

    -1.24%

  • RYCEF

    -0.3300

    17.35

    -1.9%

  • BCC

    -0.6400

    71.9

    -0.89%

  • GSK

    -0.1700

    55.15

    -0.31%

  • BTI

    -0.2500

    59.16

    -0.42%

  • NGG

    -0.1600

    89.69

    -0.18%

  • JRI

    0.2100

    12.85

    +1.63%

  • AZN

    -1.6800

    193.31

    -0.87%

  • VOD

    -0.0600

    14.4

    -0.42%

Businessman or politician? Billionaire Czech PM under fire again
Businessman or politician? Billionaire Czech PM under fire again / Photo: Michal Cizek - AFP

Businessman or politician? Billionaire Czech PM under fire again

Since entering politics in 2011, Czech Prime Minister Andrej Babis has been grappling with a conflict of interest as a billionaire businessman and politician, and his latest stint in power is no exception.

Text size:

Babis, a Donald Trump fan who has been back in office since December, insists he obeyed Czech law when he transferred his Agrofert food and chemicals group to the RSVP Trust fund run by an independent administrator last month.

But the European Commission, the anti-corruption watchdog Transparency International and media at home and abroad are scratching their heads.

"The RSVP Trust statutes confirm that Prime Minister Babis has not resolved his conflict of interest," said David Kotora, heading Transparency International's Czech branch.

"The Czech law is so vague that he may pass... but we are convinced that he will fail to comply at the European level," he told AFP.

A European Commission notice from 2021 defines a conflict of interest as a situation wherein a "financial actor's" impartiality is compromised "for reasons involving... economic interest or any other direct or indirect personal interest".

Besides having a say on the Czech budget, Babis attends European Council talks on the EU budget as premier.

Agrofert said it received the equivalent of $80 million in Czech and EU subsidies in 2024, and $103.5 million in 2023.

Before taking office, Babis vowed to "irreversibly" transfer Agrofert to RSVP Trust, saying his children will inherit the holding after his death.

"I have no influence on Agrofert and I have and will not have any profits from it," said Babis, the seventh wealthiest Czech worth $4.6 billion according to Forbes magazine.

But the RSVP Trust statutes recently published by the Seznam Zpravy news site say the independent administrator will only run the fund while Babis is a government member.

When he quits, the management will be passed onto three of Babis's four children, who could theoretically put Babis back in charge.

- 'Complicated' -

Under the statutes, the fund will manage Agrofert and then pass it on to Babis's offspring "in order to ensure the long-term fulfilment of their material needs".

Bohumil Havel, a business law expert from Prague's Charles University, said the statutes were "complicated" and enabled "multiple interpretations".

He told AFP Babis most probably complied with the Czech conflict of interest law, dubbed "lex Babis".

"However, there is the general rule... that each government member must avoid a conflicting behaviour benefiting for instance their relatives," Havel added.

Kotora also said Babis would be interested in "passing the assets on to his children".

"He said it was irreversible and that he will never get Agrofert back. Which is not true because the fund enables that," he added.

Transparency International has also slammed Babis for keeping other businesses including the chemicals and investment group SynBiol.

Babis, who calls Transparency International "a corrupt NGO", blames local political opponents for stoking the problem.

"They have made up this conflict of interest. And they are only trying to harm me, to get me out of politics," he told AFP recently.

- Deja-vu -

It is a deja-vu for Babis who transferred Agrofert to two trust funds when he first served as premier from 2017 to 2021, but publicly available documents showed he was still its beneficial owner.

The Czech finance ministry stopped asking the EU for subsidy payments for Agrofert following an EU audit.

The group only had to return some domestic subsidies, including $5 million for Babis's bakery equipment.

The European Commission inquired about the current allegations in a letter on February 19.

"The answer is being drafted and we cannot anticipate... We will respond to all questions asked by the European Commission," regional development ministry spokeswoman Veronika Lukasova told AFP.

For Kotora, the letter from Brussels is a good sign.

"The premier said nobody in the EU administration was interested. So this has been refuted," he said.

Earlier this month, the Czech parliament declined to strip Babis of immunity to face trial over EU subsidy fraud worth $2.5 million from 2007.

Babis is charged with taking a farm out of Agrofert to make it eligible for a subsidy for small companies -- a case he calls "clearly politically motivated".

(G.Gruner--BBZ)