🔗 Share this article

Andrej Babiš, the self-styled tycoon that secured victory in last month's Czech election, has refused to sell his extensive corporate assets, while insisting he will resolve a conflict of interest that might prevent him from taking the role of prime minister.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October vote but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will address the conflict of interest in accordance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove ethical conflicts arising from his corporate dealings before being appointed premier.

The Czech constitution “explicitly requires the president to consider the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was resolved.

Business Operations and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert group, function in the nation and other regional states, benefiting from substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption organization Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Past Tenure and Current Intentions

Babiš said he would “abide by the laws” if selected as premier, but did not want to explain how in advance because the issue was “an extremely sensitive and private affair for me, and the media will always question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to disclose specifics.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist movement in the region and might challenge western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the government agenda add a statement on the government’s position on the conflict in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously said he would not approve any ministerial nominees who might doubt the nation's international alliances, a requirement that the ultra-conservative party has said it will satisfy by nominating independent technocrats.