🔗 Share this article A Czech Billionaire Takes PM Office, Promising to Sever Corporate Empire Andrej Babis's cabinet is set to be a clear departure from its strongly pro-Ukrainian forerunner. Wealthy businessman Andrej Babis has been sworn in as the Czech Republic's new prime minister, with his full cabinet expected to assume their roles within days. His appointment came after a fundamental demand from President Petr Pavel – a official vow by Babis to give up control over his extensive agribusiness and chemical holding company, Agrofert. "I vow to be a prime minister who upholds the interests of the entire populace, both locally and globally," declared Babis after the ceremony at Prague Castle. "A prime minister who will work to establish the Czech Republic the finest location to live on the whole globe." Lofty Ambitions and a Far-Reaching Business Presence These are high-reaching aspirations, but Babis, 71, is used to thinking big. Agrofert is so firmly entrenched in the Czech commercial ecosystem that there is even a dedicated app to help shoppers avoid purchasing products made by the group's over two hundred subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or packaged bread from Penam – falls under an Agrofert company, a negative symbol shows up. 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 far-right SPD and the EU-skeptical "Motorists for Themselves" party. The Pledge of Separation If he fulfills his promise to divest from the company he founded and grew, he will cease to profit from the sale of any Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he asserts he will have no knowledge of the conglomerate's financial health, nor any ability to sway its fortunes. Governmental decisions on public tenders 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 says that Agrofert, valued at $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an independent administrator, where it will stay until his death. At that point, it will transfer to his children. This arrangement, he commented in a social media post, went "well above" the stipulations of Czech law. Outstanding Issues The legal nature of this trust has yet to be clarified – a domestic trust, or one based abroad? The legal framework of a "fully independent trust" is not recognized in Czech legislation, and an team of legal experts will be required to craft an structure that works. Skepticism from Watchdogs Skeptics, including Transparency International, continue to doubt. "A blind trust is not a solution," 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 holdings. From an executive position, even at a EU level, he could possibly act in matters that would impact the sector in which Agrofert functions," Kotora warned. Extensive Influence Extending Past Agrofert But it's not only food – and it's not just Agrofert. In the eastern suburbs of Prague, a private health clinic stands near 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 chain of reproductive clinics, as well as a florist chain, Flamengo, and an underwear retailer, Astratex. The footprint 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 forerunner. Wealthy businessman Andrej Babis has been sworn in as the Czech Republic's new prime minister, with his full cabinet expected to assume their roles within days. His appointment came after a fundamental demand from President Petr Pavel – a official vow by Babis to give up control over his extensive agribusiness and chemical holding company, Agrofert. "I vow to be a prime minister who upholds the interests of the entire populace, both locally and globally," declared Babis after the ceremony at Prague Castle. "A prime minister who will work to establish the Czech Republic the finest location to live on the whole globe." Lofty Ambitions and a Far-Reaching Business Presence These are high-reaching aspirations, but Babis, 71, is used to thinking big. Agrofert is so firmly entrenched in the Czech commercial ecosystem that there is even a dedicated app to help shoppers avoid purchasing products made by the group's over two hundred subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or packaged bread from Penam – falls under an Agrofert company, a negative symbol shows up. 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 far-right SPD and the EU-skeptical "Motorists for Themselves" party. The Pledge of Separation If he fulfills his promise to divest from the company he founded and grew, he will cease to profit from the sale of any Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he asserts he will have no knowledge of the conglomerate's financial health, nor any ability to sway its fortunes. Governmental decisions on public tenders 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 says that Agrofert, valued at $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an independent administrator, where it will stay until his death. At that point, it will transfer to his children. This arrangement, he commented in a social media post, went "well above" the stipulations of Czech law. Outstanding Issues The legal nature of this trust has yet to be clarified – a domestic trust, or one based abroad? The legal framework of a "fully independent trust" is not recognized in Czech legislation, and an team of legal experts will be required to craft an structure that works. Skepticism from Watchdogs Skeptics, including Transparency International, continue to doubt. "A blind trust is not a solution," 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 holdings. From an executive position, even at a EU level, he could possibly act in matters that would impact the sector in which Agrofert functions," Kotora warned. Extensive Influence Extending Past Agrofert But it's not only food – and it's not just Agrofert. In the eastern suburbs of Prague, a private health clinic stands near 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 chain of reproductive clinics, as well as a florist chain, Flamengo, and an underwear retailer, Astratex. The footprint 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.