Czech farm agency will review Babiš’s solution to conflict of interest questions

Czechia’s farm payment authority said today that it will review whether Prime Minister Andrej Babiš’s steps to sever ties with his agriculture empire, Agrofert, are legal.

Babiš pledged in December to divest from Agrofert, one of Central Europe’s largest agri-food and chemicals groups, in order to avoid conflicts of interest in both Prague and Brussels — and to comply with a condition set by Czech President Petr Pavel, who required the move before approving Babiš’s government.

“The State Agricultural Intervention Fund (SZIF), following the transfer of shares of the Agrofert group into the trust fund (RSVP Trust), requested an independent legal analysis from an external law firm,” said SZIF, a fund responsible for distributing EU Common Agricultural Policy payments in Czechia, including subsidies to Agrofert, in a press release.

“The analysis is intended to assess whether the legal arrangement through RSVP Trust is in compliance with national and European legislation,” the agency said, adding that there is no set deadline to complete it.

Babiš’s solution to place Agrofert in a trust fund — a step he formally completed last week — has come under renewed scrutiny after a leaked legal document suggested that ownership would transfer to his children not after his death, as he had previously claimed, but once his political career ends.

The Czech opposition and Transparency International argue that under this setup, Babiš would continue to hold major personal and family stakes in Agrofert throughout his life, potentially steering his decisions both in Czechia and at the EU level.

It’s a scenario the EU already knows well. Back when Babiš first served as prime minister from 2017 to 2021, he similarly placed Agrofert into trust funds. Yet in 2021, both Czech courts and the European Commission found that he still retained influence over them and was therefore in violation of EU conflict of interest rules.

In a separate matter, SZIF is also reviewing how to handle the €280 million that Agrofert received during Babiš’s first term. The agriculture ministry, under former minister Marek Výborný, said in October 2025 that it would begin recovering the funds, but the process has not moved since then.

“No decision has been made requiring us to return any subsidies. In fact, at this time we are not aware of any decision having been issued. We are convinced that we are entitled to the subsidies we applied for,” Pavel Heřmanský, Agrofert spokesperson, told POLITICO.

Babiš’s office did not respond to a request for comment. The Czech agriculture ministry declined to comment.