🔗 Share this article A Czech Billionaire Assumes Prime Ministerial Post, Vowing to Disentangle Corporate Empire The incoming government will be a clear departure compared to its strongly pro-Ukrainian previous government. Entrepreneur Andrej Babis has been sworn in as the nation's new prime minister, with his full cabinet slated to assume their roles shortly. His appointment came after a fundamental stipulation from President Petr Pavel – a public vow by Babis to relinquish command over his sprawling food-processing, agriculture and chemicals conglomerate, Agrofert. "I promise to be a prime minister who upholds the interests of every citizen, domestically and internationally," stated Babis following the ceremony at Prague Castle. "A prime minister who will work to establish the Czech Republic the best place to live on the face of the Earth." High Aspirations and a Vast Business Presence These are grandiose goals, but Babis, 71, is used to ambitious plans. Agrofert is so thoroughly integrated in the Czech commercial ecosystem that there is even a specialized application to help shoppers bypass purchasing products made by the group's numerous subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or sliced bread from Penam – falls under an Agrofert company, a negative 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 far-right SPD and the EU-skeptical "Motorists for Themselves" party. The Commitment of Withdrawal If he honors his vow to separate himself from the company he built from scratch, 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 knowledge of the conglomerate's economic status, nor any capacity to influence its performance. Governmental decisions on government procurement or subsidies – whether Czech or European – will be made with no consideration for a company he will have severed ties with or gain financially from, he further notes. Instead, he proposes that Agrofert, worth an estimated $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an independent administrator, where it will remain until his death. Then, it will pass to his children. This arrangement, he commented in a Facebook video, went "well above" the stipulations of Czech law. Outstanding Issues What kind of trust remains unclear – a trust under Czech law, or one based abroad? 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 works. Criticism from Anti-Corruption Groups Watchdog organizations, including Transparency International, continue to doubt. "A blind trust is not the answer," 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 portfolio. From an high office, even at a EU level, he could potentially influence in matters that would impact the sector in which Agrofert operates," Kotora warned. Wide-Ranging Interests Beyond Agrofert But it's not only food – and it's not only Agrofert. In the eastern suburbs of Prague, a medical facility stands near 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, majority-owned by Babis. Hartenberg also manages a chain of fertility centers, as well as a florist chain, Flamengo, and an lingerie store chain, Astratex. The footprint of Babis into every facet of Czech life is extensive. And as prime minister, for the second occasion, it is poised to become even wider.
The incoming government will be a clear departure compared to its strongly pro-Ukrainian previous government. Entrepreneur Andrej Babis has been sworn in as the nation's new prime minister, with his full cabinet slated to assume their roles shortly. His appointment came after a fundamental stipulation from President Petr Pavel – a public vow by Babis to relinquish command over his sprawling food-processing, agriculture and chemicals conglomerate, Agrofert. "I promise to be a prime minister who upholds the interests of every citizen, domestically and internationally," stated Babis following the ceremony at Prague Castle. "A prime minister who will work to establish the Czech Republic the best place to live on the face of the Earth." High Aspirations and a Vast Business Presence These are grandiose goals, but Babis, 71, is used to ambitious plans. Agrofert is so thoroughly integrated in the Czech commercial ecosystem that there is even a specialized application to help shoppers bypass purchasing products made by the group's numerous subsidiaries. If a product – for example, Viennese-style sausages from Kostelecké uzeniny or sliced bread from Penam – falls under an Agrofert company, a negative 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 far-right SPD and the EU-skeptical "Motorists for Themselves" party. The Commitment of Withdrawal If he honors his vow to separate himself from the company he built from scratch, 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 knowledge of the conglomerate's economic status, nor any capacity to influence its performance. Governmental decisions on government procurement or subsidies – whether Czech or European – will be made with no consideration for a company he will have severed ties with or gain financially from, he further notes. Instead, he proposes that Agrofert, worth an estimated $4.3bn (£3.3bn), will be transferred to a fiduciary structure managed by an independent administrator, where it will remain until his death. Then, it will pass to his children. This arrangement, he commented in a Facebook video, went "well above" the stipulations of Czech law. Outstanding Issues What kind of trust remains unclear – a trust under Czech law, or one based abroad? 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 works. Criticism from Anti-Corruption Groups Watchdog organizations, including Transparency International, continue to doubt. "A blind trust is not the answer," 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 portfolio. From an high office, even at a EU level, he could potentially influence in matters that would impact the sector in which Agrofert operates," Kotora warned. Wide-Ranging Interests Beyond Agrofert But it's not only food – and it's not only Agrofert. In the eastern suburbs of Prague, a medical facility stands near 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, majority-owned by Babis. Hartenberg also manages a chain of fertility centers, as well as a florist chain, Flamengo, and an lingerie store chain, Astratex. The footprint of Babis into every facet of Czech life is extensive. And as prime minister, for the second occasion, it is poised to become even wider.