Andrej Babiš, the billionaire populist who won last month's Czech election, has refused to sell his vast business empire, Agrofert, despite a conflict of interest that could prevent him from becoming prime minister. In a social media post on Thursday, Babiš stated he would never sell the conglomerate, which spans farming, food processing and chemicals, and insisted he would resolve the issue in line with Czech and EU laws.
Czech President Petr Pavel has demanded that Babiš publicly explain how he will eliminate conflicts of interest arising from his business activities before he can be appointed. Pavel's office cited a 2020 constitutional court ruling requiring the president to consider potential conflicts of interest when appointing ministers. Babiš, whose net worth is estimated at $3.9bn, said the matter was "extremely sensitive and personal" and refused to disclose details.
Under Czech law, government ministers cannot receive public aid or contracts. Babiš's companies, most under Agrofert, benefit from tens of millions of euros in national and EU subsidies and public contracts. Transparency International has said Babiš must either sell the business, refuse public contracts, or stay out of government to avoid a conflict of interest.
During his first term as prime minister from 2017 to 2021, Babiš faced legal battles and an EU investigation over potential conflicts of interest. He temporarily moved assets to trust funds but retained influence, which courts and the European Commission deemed insufficient. Babiš confirmed last month he is again the sole owner of Agrofert and is "taking steps" to address the issue.
Babiš has signed a coalition agreement with two right-wing fringe parties, the far-right, pro-Russian SPD and the Motorists for Themselves. The new government could bolster the populist bloc in central and eastern Europe and affect western support for Ukraine, though Babiš has assured Ukraine's president of Czech support. President Pavel has also demanded the coalition programme include a commitment to fulfilling NATO obligations.
