🔗 Share this article A Czech Tycoon Secures PM Role, Pledging to Disentangle Corporate Interests Andrej Babis's government is set to be a distinct shift from its firmly Ukraine-supporting previous government. Tycoon Andrej Babis has officially become the nation's new premier, with his full cabinet slated to be appointed in the coming days. His confirmation followed a key stipulation from President Petr Pavel – a official commitment by Babis to relinquish control over his vast food-processing, agriculture and chemicals conglomerate, Agrofert. "I vow to be a prime minister who defends the interests of every citizen, at home and abroad," stated Babis following the ceremony at Prague Castle. "A prime minister who will work to establish the Czech Republic the best place to live on the face of the Earth." Lofty Ambitions and a Far-Reaching Business Presence These are lofty ambitions, but Babis, 71, is used to thinking big. Agrofert is so thoroughly integrated in the Czech economic fabric that there is even a mobile tool to help shoppers steer clear of purchasing products made by the group's numerous subsidiaries. If a product – for example, frankfurters from Kostelecké uzeniny or sliced bread from Penam – is part of an Agrofert company, a negative symbol is displayed. Babis, who was formerly prime minister for four years until 2021, has shifted to the right in recent years and his cabinet will feature members of the right-wing SPD party and the EU-skeptical "Motorists for Themselves" party. The Commitment of Separation If he honors his vow to withdraw from the company he founded and grew, he will stop gaining from the sale of a single Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no knowledge of the conglomerate's economic status, nor any ability to sway its prospects. State decisions on state contracts or subsidies – whether national or EU-funded – will be made independently of a company he will no longer own or gain financially from, he further notes. Instead, he proposes that Agrofert, valued at $4.3bn (£3.3bn), will be placed in a trust managed by an third-party manager, where it will stay until his death. Upon that event, it will be inherited by his children. This arrangement, he stated in a online address, went "well above" the demands of Czech law. Unanswered Questions The legal nature of this trust has yet to be clarified – a Czech trust, or one established overseas? The notion of a "blind trust" does not exist in Czech statutory law, and an team of legal experts will be necessary to craft an solution that is functional. Doubts from Watchdogs Watchdog organizations, including Transparency International, are still skeptical. "A blind trust is an inadequate measure," argued David Kotora, the head of Transparency International's Czech branch, in an comment. "The divide is insufficient. [Babis] undoubtedly is acquainted with the managers. He knows Agrofert's range of businesses. From an high office, even at a European level, he could potentially influence in matters that would impact the industry in which Agrofert functions," Kotora warned. Broad Reach Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the eastern suburbs of Prague, a medical facility towers over the O2 arena. While it is the property of a company called FutureLife a.s, that company is majority-owned by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also manages a network of fertility centers, as well as a florist chain, Flamengo, and an lingerie store chain, Astratex. The footprint of Babis into multiple areas of Czech life is extensive. And as prime minister, for the second time, it is about to get even wider.
Andrej Babis's government is set to be a distinct shift from its firmly Ukraine-supporting previous government. Tycoon Andrej Babis has officially become the nation's new premier, with his full cabinet slated to be appointed in the coming days. His confirmation followed a key stipulation from President Petr Pavel – a official commitment by Babis to relinquish control over his vast food-processing, agriculture and chemicals conglomerate, Agrofert. "I vow to be a prime minister who defends the interests of every citizen, at home and abroad," stated Babis following the ceremony at Prague Castle. "A prime minister who will work to establish the Czech Republic the best place to live on the face of the Earth." Lofty Ambitions and a Far-Reaching Business Presence These are lofty ambitions, but Babis, 71, is used to thinking big. Agrofert is so thoroughly integrated in the Czech economic fabric that there is even a mobile tool to help shoppers steer clear of purchasing products made by the group's numerous subsidiaries. If a product – for example, frankfurters from Kostelecké uzeniny or sliced bread from Penam – is part of an Agrofert company, a negative symbol is displayed. Babis, who was formerly prime minister for four years until 2021, has shifted to the right in recent years and his cabinet will feature members of the right-wing SPD party and the EU-skeptical "Motorists for Themselves" party. The Commitment of Separation If he honors his vow to withdraw from the company he founded and grew, he will stop gaining from the sale of a single Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no knowledge of the conglomerate's economic status, nor any ability to sway its prospects. State decisions on state contracts or subsidies – whether national or EU-funded – will be made independently of a company he will no longer own or gain financially from, he further notes. Instead, he proposes that Agrofert, valued at $4.3bn (£3.3bn), will be placed in a trust managed by an third-party manager, where it will stay until his death. Upon that event, it will be inherited by his children. This arrangement, he stated in a online address, went "well above" the demands of Czech law. Unanswered Questions The legal nature of this trust has yet to be clarified – a Czech trust, or one established overseas? The notion of a "blind trust" does not exist in Czech statutory law, and an team of legal experts will be necessary to craft an solution that is functional. Doubts from Watchdogs Watchdog organizations, including Transparency International, are still skeptical. "A blind trust is an inadequate measure," argued David Kotora, the head of Transparency International's Czech branch, in an comment. "The divide is insufficient. [Babis] undoubtedly is acquainted with the managers. He knows Agrofert's range of businesses. From an high office, even at a European level, he could potentially influence in matters that would impact the industry in which Agrofert functions," Kotora warned. Broad Reach Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the eastern suburbs of Prague, a medical facility towers over the O2 arena. While it is the property of a company called FutureLife a.s, that company is majority-owned by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also manages a network of fertility centers, as well as a florist chain, Flamengo, and an lingerie store chain, Astratex. The footprint of Babis into multiple areas of Czech life is extensive. And as prime minister, for the second time, it is about to get even wider.