🔗 Share this article Czech Populist PM-Elect Declines to Divest Business Empire During Ethical Dispute Andrej Babiš, the self-proclaimed billionaire who secured victory in the recent Czech election, has declined to sell his extensive corporate assets, while insisting he will address a conflict of interest that could prevent him from assuming the role of head of government. Stance on Business Holdings Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he would not divest his Agrofert group, which is active in farming, food processing, and chemicals. “I have repeatedly stated I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with national and European laws,” Babiš remarked. “This is different from selling a roll in a bakeshop.” Head of State's Demand The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will remove ethical conflicts stemming from his business activities before assuming the role of premier. The national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the ways to address it” when appointing cabinet members, Pavel's office noted. The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was settled. Business Operations and Legal Issues Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the nation and other central European states, receiving substantial funds in national and EU farming and other grants, as well as government deals. Under national legislation, cabinet members cannot obtaining state support or agreements. The ethics organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter public office. Past Tenure and Present Intentions Babiš said he would “follow the laws” if appointed as premier, but declined to explain how in advance because the matter was “an highly personal and personal matter for me, and journalists will always question me regardless”. During his first term as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while retaining certain control over them. A judicial body and the European Commission both determined that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “taking steps” to avoid a conflict of interest, but refused to reveal details. Governing Deal and International Implications The billionaire populist has signed a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy. The new government, if approved, is expected to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing. Pavel, who as head of state shares responsibility for international relations, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling Nato obligations. The head of state has earlier said he would not endorse any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will satisfy by proposing independent technocrats.