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Companies within the Agrofert holding have recently secured contracts from entities under the purview of the Czech Ministry of Agriculture, raising concerns about potential conflicts of interest. The situation comes as scrutiny intensifies over the business dealings of former Prime Minister Andrej Babiš, who previously owned the Agrofert conglomerate.
According to an investigation by the PastVina project of the Hlídač státu organization, the deals appear to violate conflict of interest laws. Babiš was the sole owner of Agrofert at the time, and regulations prohibit individuals or companies they control from participating in public tenders.
The Central Institute for Agricultural Testing and Control, for example, reportedly ordered fuel and fertilizer from Agrofert for approximately 250,000 Czech koruna (roughly $10,800 USD), investigators found.
Ministry spokesperson Vojtěch Bílý stated that the ministry will review the situation.
As of Tuesday, December 16, Andrej Babiš remained the sole owner of the Agrofert group, according to data from the register of beneficial owners, the investigative project reported. The Ministry of Justice subsequently closed public access to the register of beneficial owners following court rulings. Information will now only be available through a court order demonstrating legitimate interest.
Babiš announced he will relinquish control of Agrofert to address the potential conflict of interest. He claims he will have no further involvement with the company, even after leaving politics.
Babiš was required to resolve the conflict of interest within 30 days of his appointment as prime minister, or by January 8, 2026. However, according to iRozhlas.cz, that deadline does not apply to sections of the conflict of interest law that prevent companies owned by government members from receiving public funds or bidding on public contracts.
That prohibition, the report states, took effect immediately upon Babiš becoming prime minister on December 9. The State Agricultural Intervention Fund and the Agricultural and Forestry Support and Guarantee Fund ceased processing Agrofert’s subsidy applications at that time.
The PastVina project highlighted that the Central Institute for Agricultural Testing and Control issued an order to Navos, a company within the Agrofert holding, on Monday for a fuel delivery worth 119,080 koruna. Last week, the institute ordered fertilizer from Primagra, another Agrofert company, for 123,000 koruna. Additionally, Agri CS, also part of the Agrofert group, has a contract with Lesy ČR (Czech Forests) to provide tractor servicing for nearly 54,000 koruna, excluding VAT, as of December 9.
“Decisions regarding these orders are within the competence of the relevant organization. The Ministry will, however, have the situation investigated,” Bílý said. A response from Agrofert is pending.
Babiš has previously stated that Agrofert’s shares are managed through a trust structure by an independent administrator, overseen by an independent protector, both appointed by a neutral party. His children are set to inherit Agrofert upon his death. However, opposition politicians and some experts question whether this arrangement genuinely severs Babiš’s economic ties to the company.
A recent ruling by the Supreme Administrative Court determined that the conflict of interest Babiš faced during his first term as prime minister prohibited Agrofert companies from receiving subsidies and bidding on small-scale public contracts. Babiš served as prime minister from 2017 to 2021.
