🔗 Share this article Czech Tycoon Secures Prime Ministerial Office, Vowing to Disentangle Corporate Holdings The incoming administration is set to be a distinct shift from its strongly pro-Ukrainian predecessor. Tycoon Andrej Babis has officially become the nation's new prime minister, with his full cabinet anticipated to be appointed in the coming days. His selection followed a central demand from President Petr Pavel – a formal assurance by Babis to relinquish oversight over his vast food-processing, agriculture and chemicals holding company, Agrofert. "I vow to be a prime minister who upholds the interests of the entire populace, both locally and globally," stated Babis after the event at Prague Castle. "A prime minister who will work to make the Czech Republic the top destination to live on the entire planet." Grand Visions and a Vast Business Presence These are high-reaching aspirations, but Babis, 71, is familiar with large-scale thinking. Agrofert is so thoroughly integrated in the Czech economic fabric that there is even a mobile tool 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 sliced bread from Penam – falls under an Agrofert company, a warning symbol shows up. Babis, who held the role of prime minister for four years until 2021, has shifted to the right in recent years and his cabinet will include members of the far-right SPD and the EU-skeptical "Drivers for Themselves" party. The Pledge of Withdrawal If he fulfills his pledge to withdraw from the company he built from scratch, he will cease to profit from the sale of any Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no knowledge of the conglomerate's financial health, nor any ability to sway its fortunes. Administrative decisions on government procurement or subsidies – whether Czech or European – will be made independently of a company he will no longer own or gain financially from, he further notes. Instead, he proposes that Agrofert, valued at $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an autonomous trustee, where it will stay until his death. Then, it will be inherited by his children. This arrangement, he stated in a social media post, went "exceeded" the requirements of Czech law. Outstanding Issues The specific type of trust remains unclear – a Czech trust, or one based abroad? The concept of a "fully independent trust" does not exist in Czech legislation, and an team of legal experts will be needed to craft an structure that is functional. Skepticism from Anti-Corruption Groups Watchdog organizations, including Transparency International, remain unconvinced. "A blind trust is an inadequate measure," argued David Kotora, the head of Transparency International's Czech branch, in an interview. "True separation is absent. [Babis] is familiar with the managers. He knows Agrofert's holdings. From an position of power, even at a EU level, he could possibly act in matters that would impact the industry in which Agrofert functions," Kotora cautioned. Extensive Influence Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the outskirts 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 controlled by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also runs a chain of fertility centers, as well as a florist chain, Flamengo, and an underwear retailer, Astratex. The footprint of Babis into every facet of Czech life is broad. And as prime minister, for the second time, it is poised to become broader.
The incoming administration is set to be a distinct shift from its strongly pro-Ukrainian predecessor. Tycoon Andrej Babis has officially become the nation's new prime minister, with his full cabinet anticipated to be appointed in the coming days. His selection followed a central demand from President Petr Pavel – a formal assurance by Babis to relinquish oversight over his vast food-processing, agriculture and chemicals holding company, Agrofert. "I vow to be a prime minister who upholds the interests of the entire populace, both locally and globally," stated Babis after the event at Prague Castle. "A prime minister who will work to make the Czech Republic the top destination to live on the entire planet." Grand Visions and a Vast Business Presence These are high-reaching aspirations, but Babis, 71, is familiar with large-scale thinking. Agrofert is so thoroughly integrated in the Czech economic fabric that there is even a mobile tool 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 sliced bread from Penam – falls under an Agrofert company, a warning symbol shows up. Babis, who held the role of prime minister for four years until 2021, has shifted to the right in recent years and his cabinet will include members of the far-right SPD and the EU-skeptical "Drivers for Themselves" party. The Pledge of Withdrawal If he fulfills his pledge to withdraw from the company he built from scratch, he will cease to profit from the sale of any Agrofert product – ranging from processed meats to agricultural chemicals. As prime minister, he states he will have no knowledge of the conglomerate's financial health, nor any ability to sway its fortunes. Administrative decisions on government procurement or subsidies – whether Czech or European – will be made independently of a company he will no longer own or gain financially from, he further notes. Instead, he proposes that Agrofert, valued at $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an autonomous trustee, where it will stay until his death. Then, it will be inherited by his children. This arrangement, he stated in a social media post, went "exceeded" the requirements of Czech law. Outstanding Issues The specific type of trust remains unclear – a Czech trust, or one based abroad? The concept of a "fully independent trust" does not exist in Czech legislation, and an team of legal experts will be needed to craft an structure that is functional. Skepticism from Anti-Corruption Groups Watchdog organizations, including Transparency International, remain unconvinced. "A blind trust is an inadequate measure," argued David Kotora, the head of Transparency International's Czech branch, in an interview. "True separation is absent. [Babis] is familiar with the managers. He knows Agrofert's holdings. From an position of power, even at a EU level, he could possibly act in matters that would impact the industry in which Agrofert functions," Kotora cautioned. Extensive Influence Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the outskirts 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 controlled by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also runs a chain of fertility centers, as well as a florist chain, Flamengo, and an underwear retailer, Astratex. The footprint of Babis into every facet of Czech life is broad. And as prime minister, for the second time, it is poised to become broader.