Key facts
- The European Public Prosecutor's Office (EPPO) has requested Czech police investigate EU subsidies to Agrofert.
- The investigation concerns funds paid from EU budgets, potentially violating conflict-of-interest rules linked to Prime Minister Andrej Babiš.
- The referral follows a criminal complaint over the failure to recover unlawfully paid subsidies.
- The National Center Against Organized Crime will handle the investigation.
- Agrofert maintains its companies are not targets and that subsidies are received legally.
The European Public Prosecutor's Office (EPPO) has formally requested that Czech police investigate the allocation of European Union subsidies to Agrofert, an agro-chemical conglomerate with ties to Czech Prime Minister Andrej Babiš. The request, detailed in a letter dated June 19 from European Delegated Prosecutor Daniela Bártíková, seeks to initiate criminal proceedings concerning funds provided from EU budgets.
This action stems from findings by Czech courts and the European Commission that Babiš maintained control over Agrofert, thereby violating EU conflict-of-interest regulations, even during periods when he served as prime minister. The EPPO's probe was prompted by a February criminal complaint from an opposition party concerning the alleged failure to recover subsidies paid unlawfully to the Agrofert group. The specialized unit, the National Center Against Organized Crime, has been entrusted with the investigation, focusing exclusively on EU funds.
Agrofert had previously placed the company into a trust fund to address conflict-of-interest concerns. However, scrutiny intensified following a leaked document suggesting Babiš had not fully divested his interests. The European Commission is currently assessing whether Prague has adequately separated Babiš's ties to Agrofert, a significant recipient of EU funds. Despite ongoing evaluations, the Czech Republic has continued to disburse Common Agricultural Policy subsidies to Agrofert. In a separate communication, DG AGRI Director-General Elisabeth Werner clarified that the Commission had not mandated or instructed Czech authorities to allocate these subsidies.
An Agrofert spokesman, Pavel Heřmanský, stated that the conglomerate's companies are not targets of the EPPO proceedings and are not parties to them. He emphasized that Agrofert companies receive subsidies in compliance with legal requirements and expressed understanding for the authorities' actions, while suggesting the complaints were politically motivated.