🔗 Share this article A Czech Wealthy Magnate Assumes PM Office, Pledging to Cut Commercial Holdings Andrej Babis's cabinet is set to be a clear departure from its strongly pro-Ukrainian previous government. Wealthy businessman Andrej Babis has been sworn in as the nation's new head of government, with his full cabinet slated to take their posts within days. His appointment came after a fundamental demand from President Petr Pavel – a public vow by Babis to cede control over his extensive agribusiness and chemical conglomerate, Agrofert. "I vow to be a prime minister who champions the interests of all our citizens, at home and abroad," stated Babis after the event at Prague Castle. "A leader who will work to make the Czech Republic the finest location to live on the whole globe." Grand Visions and a Pervasive Business Presence These are high-reaching aspirations, but Babis, 71, is accustomed to thinking big. Agrofert is so thoroughly integrated in the Czech economic fabric that there is even a specialized application to help shoppers avoid purchasing products made by the group's numerous subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or sliced bread from Penam – belongs to an Agrofert company, a negative symbol is displayed. Babis, who was formerly prime minister for four years until 2021, has moved rightward in recent years and his cabinet will feature members of the right-wing SPD party and the Eurosceptic "Motorists for Themselves" party. The Commitment of Separation If he honors his promise to withdraw from the company he established, he will stop gaining from the sale of any Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no information of the conglomerate's economic status, nor any capacity to influence its prospects. State decisions on state contracts or subsidies – whether national or EU-funded – will be made without regard to a company he will have severed ties with or gain financially from, he emphasizes. Instead, he explains that Agrofert, worth an estimated $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an autonomous trustee, where it will stay until his death. Upon that event, it will transfer to his children. This arrangement, he stated in a online address, went "far beyond" the demands of Czech law. Outstanding Issues The legal nature of this trust remains unclear – a trust under Czech law, or one established overseas? The legal framework of a "fully independent trust" is not recognized in Czech statutory law, and an army of lawyers will be needed to craft an arrangement that is legally sound. Criticism from Watchdogs Critics, including Transparency International, continue to doubt. "Such a trust is not the answer," argued David Kotora, the head of Transparency International's Czech branch, in an comment. "There's no separation. [Babis] undoubtedly is acquainted with the managers. He knows Agrofert's range of businesses. From an position of power, even at a EU level, he could potentially influence in matters that would affect the sector in which Agrofert functions," Kotora cautioned. Wide-Ranging Interests Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the outskirts 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 controlled by Hartenberg Holding, and Hartenberg Holding is, in turn, majority-owned by Babis. Hartenberg also manages a network of reproductive clinics, as well as a flower shop network, Flamengo, and an underwear retailer, Astratex. The influence of Babis into every facet of Czech life is extensive. And as prime minister, for the second occasion, it is set to grow even wider.
Andrej Babis's cabinet is set to be a clear departure from its strongly pro-Ukrainian previous government. Wealthy businessman Andrej Babis has been sworn in as the nation's new head of government, with his full cabinet slated to take their posts within days. His appointment came after a fundamental demand from President Petr Pavel – a public vow by Babis to cede control over his extensive agribusiness and chemical conglomerate, Agrofert. "I vow to be a prime minister who champions the interests of all our citizens, at home and abroad," stated Babis after the event at Prague Castle. "A leader who will work to make the Czech Republic the finest location to live on the whole globe." Grand Visions and a Pervasive Business Presence These are high-reaching aspirations, but Babis, 71, is accustomed to thinking big. Agrofert is so thoroughly integrated in the Czech economic fabric that there is even a specialized application to help shoppers avoid purchasing products made by the group's numerous subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or sliced bread from Penam – belongs to an Agrofert company, a negative symbol is displayed. Babis, who was formerly prime minister for four years until 2021, has moved rightward in recent years and his cabinet will feature members of the right-wing SPD party and the Eurosceptic "Motorists for Themselves" party. The Commitment of Separation If he honors his promise to withdraw from the company he established, he will stop gaining from the sale of any Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no information of the conglomerate's economic status, nor any capacity to influence its prospects. State decisions on state contracts or subsidies – whether national or EU-funded – will be made without regard to a company he will have severed ties with or gain financially from, he emphasizes. Instead, he explains that Agrofert, worth an estimated $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an autonomous trustee, where it will stay until his death. Upon that event, it will transfer to his children. This arrangement, he stated in a online address, went "far beyond" the demands of Czech law. Outstanding Issues The legal nature of this trust remains unclear – a trust under Czech law, or one established overseas? The legal framework of a "fully independent trust" is not recognized in Czech statutory law, and an army of lawyers will be needed to craft an arrangement that is legally sound. Criticism from Watchdogs Critics, including Transparency International, continue to doubt. "Such a trust is not the answer," argued David Kotora, the head of Transparency International's Czech branch, in an comment. "There's no separation. [Babis] undoubtedly is acquainted with the managers. He knows Agrofert's range of businesses. From an position of power, even at a EU level, he could potentially influence in matters that would affect the sector in which Agrofert functions," Kotora cautioned. Wide-Ranging Interests Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the outskirts 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 controlled by Hartenberg Holding, and Hartenberg Holding is, in turn, majority-owned by Babis. Hartenberg also manages a network of reproductive clinics, as well as a flower shop network, Flamengo, and an underwear retailer, Astratex. The influence of Babis into every facet of Czech life is extensive. And as prime minister, for the second occasion, it is set to grow even wider.