EXPLAINED: How a conflict-of-interest uproar is rocking Czech government talks

President Petr Pavel’s warning that he would not appoint ANO leader Andrej Babiš as prime minister until he announced a solution to his conflict of interest is set to dominate an urgent Nov. 27 session of the Chamber of Deputies, Speaker Tomio Okamura said Tuesday. 

Deputies from outgoing coalition and current opposition parties say that Babiš, whose ANO won the election and is forming a coalition with the Freedom and Direct Democracy (SPD) movement and the Motorists, publicly clarifies how he will resolve his business operations before any transfer of power. 

The clash escalates a standoff that comes during talks over who will control the next Czech government as Babiš readies up for his second term as prime minister.

The core issue is Babiš’ ownership of the Agrofert holding, a network of some 250 companies engaged in government contracts and that receive EU subsidies. Pavel claimed that the conflict of interest was “even more obvious than it was during Babiš’ first term.” 

He warned that the EU could “delay or suspend EU money for the entire Czech Republic,” stressing that “this already concerns all of us, not only Agrofert.”

Reuters cites corruption watchdog Transparency International as writing that, to make a clean break with his firms, Babiš should either sell them, stop taking any public contracts, or stay out of government.

“It would be in the interest of all citizens to hear a clear message on how the conflict of interest will be resolved before the prime minister is appointed,” Pavel said publicly this week. 

Pirates chair Olga Richterová said that “in order for Pavel not to become an accomplice in the illegal state of conflict of interest, it must be clear in advance how Babiš, if appointed, will resolve it.”

Babiš says he cannot take action before his appointment is assured. He promised citizens on Instagram: “Believe me…I cannot afford to take irreversible steps unless I am sure I will be the prime minister.” 

He added: “As soon as the president appoints me, I will resolve it.” SPD chief Okamura said Babiš had already “brought it closer” to incoming coalition parties privately, including technical details and “a specific date,” saying “it was the first half of December.” Okamura said he was satisfied with Babiš’ explanation.

Analysts say Pavel is within his authority. Constitutional lawyer Ondřej Preuss told the media the president had not contradicted his role by requiring Babiš to present a solution before the appointment.

Political scientist at Charles University’s Faculty of Social Sciences Jakub Čapek said he believes Pavel’s move is “fulfilling Pavel’s role within the political system.”