Andrej Babiš, the self-styled billionaire that won the recent parliamentary vote, has declined to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that could block him from assuming the position of prime minister.
Babiš, whose ANO party came first in the autumn election but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert group, which operates in farming, food processing, and chemical industries.
“I have consistently said I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with Czech and EU regulations,” the billionaire commented. “This is different from selling a pastry in a bakeshop.”
The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed prime minister.
The Czech constitution “clearly mandates the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.
The president “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was settled.
Babiš's numerous firms, mostly under the Agrofert group, operate in the Czech Republic and other regional countries, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.
Under national legislation, cabinet members cannot obtaining state support or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.
Babiš affirmed he would “abide by the regulations” if selected as premier, but declined to explain how in beforehand because the issue was “an highly personal and private affair for me, and the media will always criticise me regardless”.
During his first term as prime minister, from 2017 to 2021, Babiš encountered several 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 court and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal details.
The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.
The incoming administration, if approved, is expected to strengthen the populist movement in central and eastern Europe and could strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.
Pavel, who as president has a role for foreign policy, also demanded that the government agenda add a statement on the official stance on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.
The head of state has previously stated he would not approve any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by nominating independent technocrats.
