PRAGUE – Czechia’s agriculture ministry will seek the return of CZK 5.1 billion (€205 million) in subsidies from companies linked to the Agrofert company, citing a conflict of interest involving former prime minister Andrej Babiš.
The funds were paid out between 2017 and 2021, during which time Babiš was both head of government and the ultimate owner of Agrofert.
The decision comes just weeks before the 3-4 October parliamentary elections, in which Babiš is leading the polls with ANO, a party affiliated to the Patriots for Europe in the European Parliament.
Agriculture Minister Marek Výborný, from the centre-right KDU-ČSL, said the move follows key rulings by the country’s top courts.
“We must proceed in accordance with the law, regardless of who is concerned. If someone wants to do politics, they must respect both Czech and European legislation. If they don’t, they cannot receive public support,” he said during a press conference on Wednesday.
Výborný said that some of the subsidies in question, such as those for the modernisation of barns and machinery, were “clearly in conflict with both national and European legislation.”
Of the €205 million, around €35 million are national subsidies and €172 million are direct payments under the EU’s Common Agricultural Policy (CAP). As repayment is being sought from individual subsidiaries rather than the holding company, almost 90 firms linked to Agrofert are expected to be affected.
Agrofert rejected the decision, insisting that there is “no reason or legal justification for any repayment of subsidies.”
“Most of the subsidies drawn were standard area-based payments, to which every farmer cultivating agricultural land properly or keeping livestock is entitled,” the conglomerate said in an official statement. They added that such subsidies are also commonly received by firms owned by government members or their relatives.
The remark appeared to be aimed at Labour Minister Marian Jurečka, also of KDU-ČSL, whose wife owns a farm that receives agricultural subsidies.
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