NGO: Brussels confirms Czech PM’s agri business conflict of interest

An NGO has confirmed that European Commission Director-General Elisabeth Werner has written to the Czech government, stating that Prime Minister Andrej Babiš's relationship with agro-chemical company Agrofert constitutes a conflict of interest under EU financial regulations. Babiš had attempted to avoid this conflict by placing Agrofert in a trust fund, but the Commission has deemed the arrangement insufficient.

Transparency International Czechia received a letter from Werner confirming this, stating that "the Commission concluded that Mr. Babiš' situation constitutes a conflict of interest." The trust fund and measures currently being implemented have been deemed insufficient by the Commission to resolve the issue. Babiš has been under scrutiny since his return to power last year, with concerns over Agrofert and other companies receiving EU funds.

Babiš has denied any wrongdoing, stating he does not own Agrofert and does not benefit from it. Werner warned in her letter that Brussels would take necessary steps to protect EU funds, including potential suspension of payments or application of financial corrections. The conflict echoes Babiš's first term as prime minister, when a Commission audit found he controlled Agrofert, leading to Czech taxpayers footing the bill for erroneously paid EU subsidies.

Brussels has frozen €3.18 million in reimbursements to the Czech state for farm subsidies paid to Agrofert, and has not reimbursed any paid-out subsidies until doubts about Babiš's involvement are resolved. The agricultural paying agency in Czechia has sent clarifications to the Commission, but Agrofert and its subsidiaries deny any involvement in the communication between the Commission and Czech authorities.