🔗 Share this article Czech Tycoon Secures Prime Ministerial Office, Promising to Disentangle Commercial Empire The incoming government represents a distinct shift from its firmly Ukraine-supporting previous government. Entrepreneur Andrej Babis has officially become the nation's new prime minister, with his complete ministerial team expected to be appointed in the coming days. His selection came after a fundamental stipulation from President Petr Pavel – a official vow by Babis to give up oversight over his vast agribusiness and chemical holding company, Agrofert. "I vow to be a prime minister who champions the interests of the entire populace, both locally and globally," stated Babis following the event at Prague Castle. "A leader who will work to make the Czech Republic the best place to live on the face of the Earth." Lofty Ambitions and a Vast Business Presence These are high-reaching aspirations, but Babis, 71, is used to thinking big. Agrofert is so firmly entrenched in the Czech economic fabric that there is even a mobile tool to help shoppers bypass purchasing products made by the group's more than 200 subsidiaries. If a product – for example, frankfurters from Kostelecké uzeniny or sliced bread from Penam – belongs to an Agrofert company, a negative symbol appears. Babis, who was formerly prime minister for four years until 2021, has adopted more right-leaning positions in recent years and his cabinet will feature members of the far-right SPD and the Eurosceptic "Motorists for Themselves" party. The Pledge of Withdrawal If he honors his pledge to withdraw from the company he founded and grew, he will cease to profit from the sale of a single Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no insight of the conglomerate's financial health, nor any capacity to influence its fortunes. State decisions on government procurement or subsidies – whether Czech or European – will be made independently of a company he will have relinquished ownership of or gain financially from, he emphasizes. Instead, he says 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 transfer to his children. This arrangement, he stated in a online address, went "far beyond" the demands of Czech law. Outstanding Issues The specific type of trust has yet to be clarified – a domestic trust, or one established overseas? The notion of a "fully independent trust" has no basis in Czech statutory law, and an battalion of attorneys will be needed to devise an structure that is legally sound. Skepticism from Observers 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. "The divide is insufficient. [Babis] obviously knows 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 impact the sector in which Agrofert functions," Kotora cautioned. Extensive Influence Beyond Agrofert But it's not only 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 majority-owned by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also operates a network of reproductive clinics, as well as a florist chain, Flamengo, and an underwear retailer, Astratex. The footprint of Babis into all corners of Czech life is broad. And as prime minister, for the second time, it is poised to become broader.
The incoming government represents a distinct shift from its firmly Ukraine-supporting previous government. Entrepreneur Andrej Babis has officially become the nation's new prime minister, with his complete ministerial team expected to be appointed in the coming days. His selection came after a fundamental stipulation from President Petr Pavel – a official vow by Babis to give up oversight over his vast agribusiness and chemical holding company, Agrofert. "I vow to be a prime minister who champions the interests of the entire populace, both locally and globally," stated Babis following the event at Prague Castle. "A leader who will work to make the Czech Republic the best place to live on the face of the Earth." Lofty Ambitions and a Vast Business Presence These are high-reaching aspirations, but Babis, 71, is used to thinking big. Agrofert is so firmly entrenched in the Czech economic fabric that there is even a mobile tool to help shoppers bypass purchasing products made by the group's more than 200 subsidiaries. If a product – for example, frankfurters from Kostelecké uzeniny or sliced bread from Penam – belongs to an Agrofert company, a negative symbol appears. Babis, who was formerly prime minister for four years until 2021, has adopted more right-leaning positions in recent years and his cabinet will feature members of the far-right SPD and the Eurosceptic "Motorists for Themselves" party. The Pledge of Withdrawal If he honors his pledge to withdraw from the company he founded and grew, he will cease to profit from the sale of a single Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no insight of the conglomerate's financial health, nor any capacity to influence its fortunes. State decisions on government procurement or subsidies – whether Czech or European – will be made independently of a company he will have relinquished ownership of or gain financially from, he emphasizes. Instead, he says 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 transfer to his children. This arrangement, he stated in a online address, went "far beyond" the demands of Czech law. Outstanding Issues The specific type of trust has yet to be clarified – a domestic trust, or one established overseas? The notion of a "fully independent trust" has no basis in Czech statutory law, and an battalion of attorneys will be needed to devise an structure that is legally sound. Skepticism from Observers 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. "The divide is insufficient. [Babis] obviously knows 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 impact the sector in which Agrofert functions," Kotora cautioned. Extensive Influence Beyond Agrofert But it's not only 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 majority-owned by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also operates a network of reproductive clinics, as well as a florist chain, Flamengo, and an underwear retailer, Astratex. The footprint of Babis into all corners of Czech life is broad. And as prime minister, for the second time, it is poised to become broader.