Czech Finance Minister Babis has possible conflicts of interest

Ingeborg Graessle, a member of the European Parliament’s Committee on Budgetary Control, criticized Andrej Babis, the current Czech minister of finance, stating that potential conflicts of interest are raised by Babis working as financing minister whilst also remaining active in business, news portal Ceskenoviny reported March 27.

 

“Czech businessman and ANO chairman Andrej Babis’s position as the finance minister means a serious conflict of interest that may hamper cooperation between the EU and the Czech Republic,” said Graessle, as cited by the news portal. “We watch such conflicts of interest in the Czech government with concern.”

Greassle’s visit to the Czech Republic is connected with an audit of mistakes linked to drawing EU funds. Greassle said that Babis’ companies have received EUR 2.6 mln in European funding and as the minister of finance, Babis is in fact the Czech guarantor of the money being allocated in accordance with the EU regulations.

“How can a person with such a massive personal financial interests simultaneously be the guarantor,” said Greassle, as cited by Ceskenoviny.

Greassle also said that the conflicts of interest make the Czech control systems untrustworthy, and it would be best if Babis sold or passed his business empire to another person.

“In any case, he must clearly prove that he has nothing to do with it anymore,” stated Greassle, as cited by the portal.

Jens Geier, a German politician and a MEP since 2009, said that this is Greassle’s private opinion and that the Czech Finance Ministry has explained to MEPs that Babis does not act in contradiction to Czech regulations.

“The European Parliament is not authorised to advise Prague on what steps to take in this respect,” said Geier, as cited by Ceskenoviny.

Czech Prime Minister Bohuslaw Sobotka sided partially with Greassle, saying that from the point of clarity it would be better if Babis quit his business ventures.

“From the point of view of clarity, in order to avoid questions of a possible conflict of interests, it would definitely be better for Babis to end his business activities and continue to focus on politics only,” said the prime minister, as cited by a news portal Ceskenoviny. “If Babis decides not to terminate his business activities and they are relatively broad – starting with agriculture and ending with media sphere – then he must naturally be very careful not to get into conflicts of interest.”

Sobotka also stated that in his opinion Babis should expect to be under the constant spotlight at the local media.

Reacting to Greassle’s accusations, Babis said he is not considering withdrawing from his business activities.

“I am accountable to my voters, not to Greassle who does not have the correct information,” said Babis as cited by the portal. “I do know the Czech laws on conflicts of interest.”

One of the richest Czechs, whose new ANO movement entered parliament for the very first time in the last Czech elections, Babis is a member of the center-left cabinet of the Social Democrats (CSSD), ANO and the Christian Democrats (KDU-CSL). On Jan. 29, 2014 he was appointed the new Czech minister of finance.

Photo courtesy of mfcr.cz