Andrej Babis is now firmly ensconced in the post of Czech Republic Prime Minister. This appointment signals a dramatic change in the direction of this country’s leadership. He takes this legacy role seriously and applies himself to it. He is hellbent on severing connections to his vast business holdings, particularly his massive conglomerate, Agrofert. Babis’s full cabinet is expected to take office within days, setting the stage for his administration’s policies and initiatives.
Babis made Agrofert what it is today, building it from scratch. Now, he has promised to relinquish control of the company, which is engaged in food processing, agriculture and chemicals. Valued at an estimated $4.3 billion (£3.3 billion), Agrofert includes more than 200 subsidiaries. He puts Agrofert in a blind trust. An independent, third-party administrator oversees it to eliminate any possible conflict of interest during his term as Prime Minister.
Assuming Babis fulfills his pledge, he will no longer benefit from sales of any Agrofert goods. There are still questions about the nature of this trust that will hold Agrofert. Unfortunately, Czech law clearly does not recognize the notion of a “blind trust.” This leads to the unpredictability of when a Czech trust or a foreign trust will be the go-to choice. Many critics have raised warnings about the impact of this unusual deal on our system of governance.
As Prime Minister, Babis will of course have the theoretical ability to intervene in matters affecting his private company Agrofert. Further, he has promised the public that his government will take ethical considerations into account when awarding public tenders and subsidies. In these cases, Agrofert’s interests will not inform the decisions.
“I promise to be a prime minister who defends the interests of all our citizens, at home and abroad,” – Andrej Babis
Despite his promises, some observers remain cautious. In practice, according to David Kotora, an expert on political ethics known for challenging administrative overreach, Babis’s approach only went so far.
“A blind trust is not a solution,” – David Kotora
To help consumers identify products not made by Agrofert’s subsidiaries, a Farm Bill application has been created. This new tool is meant to better empower shoppers and create a new level of transparency in the marketplace.