🔗 Share this article Czech Billionaire Takes PM Post, Promising to Sever Corporate Empire Andrej Babis's government will be a distinct shift compared to its strongly pro-Ukrainian predecessor. Wealthy businessman Andrej Babis has taken office as the nation's new premier, with his government expected to take their posts in the coming days. His appointment was contingent upon a central stipulation from President Petr Pavel – a official assurance by Babis to give up oversight over his extensive food-processing, agriculture and chemicals group, Agrofert. "I vow to be a prime minister who defends the interests of the entire populace, domestically and internationally," stated Babis after the swearing-in at Prague Castle. "A leader who will work to establish the Czech Republic the best place to live on the face of the Earth." Lofty Ambitions and a Pervasive Business Presence These are high-reaching aspirations, but Babis, 71, is used to thinking big. Agrofert is so deeply embedded in the Czech commercial ecosystem that there is even a dedicated app to help shoppers steer clear of purchasing products made by the group's numerous subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or packaged bread from Penam – is part of an Agrofert company, a thumbs-down symbol shows up. Babis, who previously served as prime minister for four years until 2021, has adopted more right-leaning positions in recent years and his cabinet will include members of the right-wing SPD party and the EU-skeptical "Drivers for Themselves" party. The Pledge of Separation If he upholds his promise to divest from the company he established, he will stop gaining from the sale of a single Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he asserts he will have no information of the conglomerate's financial health, nor any power to sway its fortunes. Administrative decisions on public tenders or subsidies – whether national or EU-funded – will be made without regard to a company he will no longer own or profit from, he further notes. Instead, he explains that Agrofert, valued at $4.3bn (£3.3bn), will be transferred to a trust managed by an third-party manager, where it will remain until his death. Then, it will transfer to his children. This arrangement, he remarked in a Facebook video, went "well above" the demands of Czech law. Unanswered Questions What kind of trust is still uncertain – a Czech trust, or one established overseas? The legal framework of a "blind trust" is not recognized in Czech legislation, and an battalion of attorneys will be required to craft an solution that works. Criticism from Watchdogs Critics, including Transparency International, are still skeptical. "Such a trust is not the answer," stated David Kotora, the head of Transparency International's Czech branch, in an statement. "The divide is insufficient. [Babis] is familiar 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 affect the industry in which Agrofert functions," Kotora cautioned. Broad Reach 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 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, majority-owned by Babis. Hartenberg also manages a network of fertility centers, as well as a flower shop network, Flamengo, and an lingerie store chain, Astratex. The influence of Babis into every facet of Czech life is wide. And as prime minister, for the second occasion, it is set to grow more extensive.
Andrej Babis's government will be a distinct shift compared to its strongly pro-Ukrainian predecessor. Wealthy businessman Andrej Babis has taken office as the nation's new premier, with his government expected to take their posts in the coming days. His appointment was contingent upon a central stipulation from President Petr Pavel – a official assurance by Babis to give up oversight over his extensive food-processing, agriculture and chemicals group, Agrofert. "I vow to be a prime minister who defends the interests of the entire populace, domestically and internationally," stated Babis after the swearing-in at Prague Castle. "A leader who will work to establish the Czech Republic the best place to live on the face of the Earth." Lofty Ambitions and a Pervasive Business Presence These are high-reaching aspirations, but Babis, 71, is used to thinking big. Agrofert is so deeply embedded in the Czech commercial ecosystem that there is even a dedicated app to help shoppers steer clear of purchasing products made by the group's numerous subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or packaged bread from Penam – is part of an Agrofert company, a thumbs-down symbol shows up. Babis, who previously served as prime minister for four years until 2021, has adopted more right-leaning positions in recent years and his cabinet will include members of the right-wing SPD party and the EU-skeptical "Drivers for Themselves" party. The Pledge of Separation If he upholds his promise to divest from the company he established, he will stop gaining from the sale of a single Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he asserts he will have no information of the conglomerate's financial health, nor any power to sway its fortunes. Administrative decisions on public tenders or subsidies – whether national or EU-funded – will be made without regard to a company he will no longer own or profit from, he further notes. Instead, he explains that Agrofert, valued at $4.3bn (£3.3bn), will be transferred to a trust managed by an third-party manager, where it will remain until his death. Then, it will transfer to his children. This arrangement, he remarked in a Facebook video, went "well above" the demands of Czech law. Unanswered Questions What kind of trust is still uncertain – a Czech trust, or one established overseas? The legal framework of a "blind trust" is not recognized in Czech legislation, and an battalion of attorneys will be required to craft an solution that works. Criticism from Watchdogs Critics, including Transparency International, are still skeptical. "Such a trust is not the answer," stated David Kotora, the head of Transparency International's Czech branch, in an statement. "The divide is insufficient. [Babis] is familiar 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 affect the industry in which Agrofert functions," Kotora cautioned. Broad Reach 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 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, majority-owned by Babis. Hartenberg also manages a network of fertility centers, as well as a flower shop network, Flamengo, and an lingerie store chain, Astratex. The influence of Babis into every facet of Czech life is wide. And as prime minister, for the second occasion, it is set to grow more extensive.