Dispute over Conflict of Interest: President Pavel Urges Babiš to Provide Clarity Before Taking Office

President Petr Pavel is demanding a public explanation from Andrej Babiš on how he intends to resolve his conflict of interest with the Agrofert group. Babiš refuses and refers to the constitution.

President Petr Pavel is requesting a clear statement from the designated Prime Minister and ANO leader Andrej Babiš on how he plans to address his potential conflict of interest. This arises if Babiš becomes Prime Minister, as he is also the owner of the agricultural and chemical group Agrofert, which receives state subsidies.

According to the news portal novinky.cz, Babiš has rejected the president’s demand. He points out that the Czech constitution does not consider a conflict of interest as an obstacle to taking office. However, Pavel has repeatedly asked that Babiš publicly disclose his approach.

“If Andrej Babiš is appointed Prime Minister, he automatically enters into a conflict of interest. He himself announced immediately after the election at a press conference that he would resolve this conflict in accordance with the law,” Pavel said on Monday during a visit to the Karlovy Vary region.

As reported by nonvinky.cz, the President made it clear that he shares responsibility for the situation through his appointment of the Prime Minister, who will go on to form the next government. “I cannot demand things that the law or the constitution does not allow. But it is entirely legitimate to require Andrej Babiš to now explain to the public, as he announced publicly, how he intends to resolve his conflict of interest,” Pavel continued.

The president did not specify particular methods that could be used. According to the law, however, a government member must resolve their conflict of interest within 30 days of appointment.

Possible options could be that Babiš sells Agrofert – which would hardly be realistic within the deadline – or transfers the companies into a so-called “blind trust,” over which he would have no control. Alternatively, the group could be transferred to his children, or Babiš could theoretically forgo state subsidies and participation in public tenders.

Pavel warned of potential consequences for the Czech Republic: “If the European Union concludes that Andrej Babiš is in a conflict of interest or has not satisfactorily resolved it, this could lead to restrictions on EU funds – which we would all feel.”

Another meeting between President Pavel and the ANO leader is scheduled for Wednesday. Resolving the conflict of interest will be a central topic.