🔗 Share this article Czech Wealthy Magnate Secures Prime Ministerial Post, Pledging to Disentangle Corporate Empire The incoming cabinet is set to be markedly different from its strongly pro-Ukrainian predecessor. Entrepreneur Andrej Babis has officially become the nation's new premier, with his government slated to take their posts in the coming days. His appointment followed a key stipulation from President Petr Pavel – a official commitment by Babis to cede oversight over his extensive food-processing, agriculture and chemicals group, Agrofert. "I promise to be a prime minister who defends the interests of all our citizens, both locally and globally," affirmed Babis after the ceremony at Prague Castle. "A leader who will work to make the Czech Republic the finest location to live on the whole globe." Lofty Ambitions and a Far-Reaching Business Presence These are grandiose goals, but Babis, 71, is used to large-scale thinking. Agrofert is so thoroughly integrated in the Czech economic fabric that there is even a dedicated app 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 thumbs-down symbol appears. Babis, who previously served as prime minister for four years until 2021, has moved rightward in recent years and his cabinet will include members of the far-right SPD and the Eurosceptic "Drivers for Themselves" party. The Promise of Divestment If he upholds his pledge to divest from the company he established, he will no longer benefit from the sale of a single 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 capacity to sway its fortunes. Administrative decisions on public tenders or subsidies – whether national or EU-funded – will be made independently of a company he will have relinquished ownership of or profit from, he emphasizes. Instead, he explains that Agrofert, valued at $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an third-party manager, where it will remain until his death. At that point, it will pass to his children. This arrangement, he commented in a Facebook video, went "far beyond" the requirements of Czech law. Outstanding Issues The legal nature of this trust remains unclear – a trust under Czech law, or one established overseas? The legal framework of a "fully independent trust" is not recognized in Czech statutory law, and an team of legal experts will be needed to devise an structure that is legally sound. Skepticism from Observers Critics, including Transparency International, remain unconvinced. "A blind trust is not a solution," argued David Kotora, the head of Transparency International's Czech branch, in an interview. "The divide is insufficient. He undoubtedly is acquainted with the managers. He knows Agrofert's holdings. From an executive position, even at a European level, he could theoretically intervene in matters that would affect the industry in which Agrofert functions," Kotora advised. Wide-Ranging Interests Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the outskirts of Prague, a private health clinic stands near the O2 arena. While it is owned by 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 runs a network of reproductive clinics, as well as a florist chain, Flamengo, and an lingerie store chain, Astratex. The influence of Babis into multiple areas of Czech life is broad. And as prime minister, for the second occasion, it is poised to become even wider.
The incoming cabinet is set to be markedly different from its strongly pro-Ukrainian predecessor. Entrepreneur Andrej Babis has officially become the nation's new premier, with his government slated to take their posts in the coming days. His appointment followed a key stipulation from President Petr Pavel – a official commitment by Babis to cede oversight over his extensive food-processing, agriculture and chemicals group, Agrofert. "I promise to be a prime minister who defends the interests of all our citizens, both locally and globally," affirmed Babis after the ceremony at Prague Castle. "A leader who will work to make the Czech Republic the finest location to live on the whole globe." Lofty Ambitions and a Far-Reaching Business Presence These are grandiose goals, but Babis, 71, is used to large-scale thinking. Agrofert is so thoroughly integrated in the Czech economic fabric that there is even a dedicated app 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 thumbs-down symbol appears. Babis, who previously served as prime minister for four years until 2021, has moved rightward in recent years and his cabinet will include members of the far-right SPD and the Eurosceptic "Drivers for Themselves" party. The Promise of Divestment If he upholds his pledge to divest from the company he established, he will no longer benefit from the sale of a single 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 capacity to sway its fortunes. Administrative decisions on public tenders or subsidies – whether national or EU-funded – will be made independently of a company he will have relinquished ownership of or profit from, he emphasizes. Instead, he explains that Agrofert, valued at $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an third-party manager, where it will remain until his death. At that point, it will pass to his children. This arrangement, he commented in a Facebook video, went "far beyond" the requirements of Czech law. Outstanding Issues The legal nature of this trust remains unclear – a trust under Czech law, or one established overseas? The legal framework of a "fully independent trust" is not recognized in Czech statutory law, and an team of legal experts will be needed to devise an structure that is legally sound. Skepticism from Observers Critics, including Transparency International, remain unconvinced. "A blind trust is not a solution," argued David Kotora, the head of Transparency International's Czech branch, in an interview. "The divide is insufficient. He undoubtedly is acquainted with the managers. He knows Agrofert's holdings. From an executive position, even at a European level, he could theoretically intervene in matters that would affect the industry in which Agrofert functions," Kotora advised. Wide-Ranging Interests Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the outskirts of Prague, a private health clinic stands near the O2 arena. While it is owned by 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 runs a network of reproductive clinics, as well as a florist chain, Flamengo, and an lingerie store chain, Astratex. The influence of Babis into multiple areas of Czech life is broad. And as prime minister, for the second occasion, it is poised to become even wider.