President Pavel Signals Willingness to Negotiate with Babiš on Conflict of Interest Concerns
President Petr Pavel has indicated he is prepared to discuss potential solutions with Andrej Babiš regarding the Conflict of Interest Act, should Babiš’s party perform well in upcoming elections. This comes after a recent High Court decision in the Stork Nest case, which Babiš has dismissed as a politically motivated process. Pavel previously stated he would await a new ruling from the Municipal Court in Prague before speculating on a potential appointment of Babiš, but now appears open to dialog to address ongoing legal concerns.
The issue centers on Babiš’s continued registration as the beneficial owner of Agrofert, even after placing the holding in trust funds in 2017 due to amendments to the Conflict of Interest Act. The Stork Nest case alleges Babiš improperly secured a €2 million (approximately 49.9 million Czech crowns) subsidy for small and medium-sized enterprises by transferring Farm Čapí Hnízdo from Agrofert to his children and partner. While the company returned the subsidy in 2018, the legal proceedings and the question of Babiš’s potential conflict of interest remain significant hurdles to his possible future political roles. Pavel’s willingness to engage in negotiations suggests a potential path forward, contingent on finding a legally sound resolution.
