Financial Crime World

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Slovak Register Exposes Prime Minister’s Hidden Ownership Stake

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A recent discovery in the Slovak Register has shed light on a potential conflict of interest involving Czech Prime Minister Andrej Babiš. According to Transparency International Czech Republic (TI), Babiš is listed as the controlling person, or beneficial owner, of Agrofert a.s., a company with significant interests in various sectors.

Beneficial Ownership Transparency Law


The finding was made possible by Slovakia’s beneficial ownership transparency law, which requires companies to disclose their ultimate controllers and owners. In this case, the record for Agrofert shows that Babiš has the power to remove four of its five controlling entities, effectively making him the de facto owner.

Questions About EU Funding Eligibility


The revelation raises serious concerns about conflict of interest and EU funding policies. As TI notes, the European Parliament has previously ruled that companies owned by politicians should not receive EU subsidies. Given this precedent, there are questions about whether Agrofert’s eligibility to use public funds should be re-examined.

Conflict of Interest Act Violations


Furthermore, the Conflict of Interest Act prohibits ministers and the Prime Minister from owning or controlling media outlets. However, Agrofert also owns MAFRA Publishing Company, a.s., which has raised concerns about its independence and impartiality. TI analyst Milan Eibl notes that Babiš’s continued dominance over Agrofert creates an obvious conflict of interest.

Public Statements Contradicted


“This is an offense that contradicts Prime Minister Babiš’s public statements that he no longer has any business ties to Agrofert,” Eibl said.

Calls for Greater Transparency and Accountability


The discovery has sparked calls for greater transparency and accountability in Czech politics. TI director David Ondráčka emphasized the need for a thorough investigation into the matter, adding that his organization will continue to push for reforms to prevent similar situations from arising in the future.

Essential Policy Changes Needed


“Babiš’s ownership of Agrofert creates a clear conflict of interest, and we believe it is essential to address this issue through legislation and policy changes,” Ondráčka said.