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Babis sworn in as Czech prime minister amid conflict-of-interest concerns
Andrej Babis, the billionaire founder of the Agrofert conglomerate, was formally appointed Czech prime minister on Wednesday following a commitment to distance himself from his business empire.
Presidential condition triggers divestment pledge
President Petr Pavel made the handover contingent on Babis publicly vowing to relinquish control of Agrofert, which spans food processing, agriculture, and chemicals. The 71-year-old tycoon, who previously led the country from 2017 to 2021, accepted the terms during a ceremony at Prague Castle.
"I pledge to serve as a prime minister who champions the interests of every citizen, both domestically and internationally. My goal is to transform the Czech Republic into the world's most desirable place to live."
Andrej Babis
Agrofert's pervasive footprint in Czech economy
The conglomerate's influence is so extensive that a mobile application flags products from its 200-plus subsidiaries-such as Kostelecké uzeniny sausages or Penam bread-with a disapproval icon to help consumers avoid them.
Babis asserts that placing Agrofert, valued at approximately $4.3 billion, into a trust will prevent him from accessing its financial details or influencing its operations. The trust, he claims, will remain under independent management until his death, after which ownership will transfer to his children.
Legal ambiguities and skepticism persist
Czech law lacks a formal framework for blind trusts, raising questions about the structure of the arrangement. Whether the trust will be domestic or offshore remains unspecified, though Babis described it as exceeding legal requirements.
Critics, including Transparency International, argue the measure falls short of ensuring genuine separation. David Kotora, the organization's Czech director, told Seznam Zpravy that Babis retains insider knowledge of Agrofert's operations and could theoretically exploit his political role to benefit the conglomerate's sectors.
Broader business interests beyond Agrofert
Babis's holdings extend beyond food and chemicals. His Hartenberg Holding controls FutureLife, a private healthcare provider near Prague's O2 arena, as well as fertility clinics, the Flamengo florist chain, and the Astratex lingerie brand.
Political shift and coalition composition
Babis's new cabinet reflects a rightward tilt, incorporating members of the far-right SPD and the Eurosceptic party Motorists for Themselves. The government is expected to assume office within days.
