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Andrej Babiš

Andrej Babiš

Prime minister of the czech republic
Andrej Babiš
The basics

Quick Facts

Intro Prime minister of the czech republic
Is Businessperson Politician Economist
From Czech Republic Slovakia
Type Business Finance Politics
Gender male
Birth 2 September 1954, Bratislava, Bratislava Region, Slovakia, First Czechoslovak Republic
Age 66 years
Residence Průhonice, Prague-West District, Central Bohemian Region, Czech Republic
Politics Communist Party of Czechoslovakia, ANO 2011
Peoplepill ID andrej-babis
Andrej Babiš
The details (from wikipedia)

Biography

Andrej Babiš (Czech pronunciation: [ˈandrɛj ˈbabɪʃ]; born 2 September 1954) is a Czech politician of Slovak origin who has been the Prime Minister of the Czech Republic since December 2017, and previously served as Minister of Finance and Deputy Prime Minister for the Economy from January 2014 to May 2017. Before entering politics, he was a businessman and entrepreneur.

Babiš was born in Bratislava in present-day Slovakia, and moved to the Czech Republic following the Velvet Revolution. The second richest man in the Czech Republic with an estimated net worth of about $4.04 billion according to Bloomberg, he is a former CEO and sole owner of the Agrofert group, which owns two of the largest Czech newspapers, Mladá fronta DNES and Lidové noviny. Babiš has led ANO 2011 since founding it in 2012 as a protest movement against established politics. He has been a member of the Chamber of Deputies (MP) since 2013. Babiš was sacked from the government by Prime Minister Bohuslav Sobotka on 24 May 2017 after a month-long coalition crisis triggered by allegations that Babiš avoided paying taxes as CEO of Agrofert in 2012.

Following the 2017 legislative election, which resulted in a hung parliament with no possible coalitions, Babiš was appointed Prime Minister on 6 December 2017 and a week later formed a minority government composed of ANO party members and independents. He became the oldest and wealthiest person ever to assume the premiership, as well as the first Prime Minister in the history of the Czech Republic to be from a different party than ODS or ČSSD. On 16 January 2018, his government lost motion of confidence vote (78 MPs for while 117 against) in the Chamber of Deputies and he resigned the following day. His second cabinet, confirmed by the Chamber of Deputies on 12 July 2018, is the first government since the fall of Communism in 1989 to rely on support from the Communist Party.

Babiš had been under investigation by both Czech Police and OLAF from 2015 to 2017 amid allegations that an anonymous company he controlled unlawfully received €2m subsidy from the European Union. In September 2017, he was stripped his parliamentary immunity after a police request in connection with the case and Babiš was formally charged on 9 October 2017. OLAF concluded its investigation in December 2017 stating it has found irregularities and endorsed the steps taken by the Czech Police. Due to his re-election in the 2017 election he regained his parliamentary immunity and the Chamber of Deputies voted again to lift it on 19 January 2018. As well as alleged fraud, Babiš is the subject of sustained criticism from political opponents and the media regarding a number of issues, including conflict of interest, his past role in the communist secret police, and allegations of intimidation of opponents. Despite this, Babiš remains one of the most popular politicians in the Czech Republic.

Early life and career

Babiš was born on 2 September 1954 to a Slovak family in Bratislava, Czechoslovakia (present-day Slovakia). His father, a diplomat and member of the Communist Party of Czechoslovakia, represented Czechoslovakia during the negotiation of the General Agreement on Tariffs and Trade (GATT) in Geneva and as a consultant at the United Nations. He is nephew of Ervin and Viera Scheibner.

Babiš spent part of his childhood abroad, and was educated in Paris and Geneva. Later, he studied at a gymnasium in Bratislava and continued to the University of Economics, where he studied international trade. In 1978, after graduating, he joined the Slovak communist controlled international trade company, Chemapol Bratislava, which later became Petrimex. In 1985 he was appointed as the organisation's representative in Morocco. He joined the Communist Party in 1980. He has been accused of being a "powerful agent" for the Czechoslovak secret state security service, StB, during the 1980s, as well as being a KGB officer.

Business career

Headquarters of Agrofert in Chodov, Prague.

Babiš returned from Morocco to Czechoslovakia in 1991, after the Velvet Revolution, and settled in the Czech Republic after the dissolution of Czechoslovakia.

In January 1993, Babiš became managing director of a newly established Petrimex subsidiary operating in the Czech Republic, Agrofert. He had suggested establishing Agrofert while he was a director at Petrimex, during which time Agrofert was recapitalised by OFI, a company of unknown ownership based in Baar, Switzerland, which took control of Agrofert from Petrimex. Petrimex later fired Babiš and sued him, unsuccessfully, for allowing the firm's stake in Agrofert to be diluted. Soon thereafter, Babiš emerged as the 100% owner of Agrofert. The source of the initial financing for Babiš's takeover of Agrofert from Petrimex was still undisclosed as of the start of 2016, although Babiš has said that the money came from his Swiss former schoolmates.

Babiš gradually developed Agrofert into one of the largest companies in the country, starting as a wholesale and trading firm, but later acquiring various agricultural, food processing, and chemical companies. In 2011 Agrofert Holding consisted of more than 230 companies, mainly in the Czech Republic, Slovakia, and Germany. It is the fourth largest company in the Czech Republic by revenue, exceeding CZK 117 billion. The history of Agrofert, detailed in a book by the journalist Tomáš Pergler, is closely linked to its control of the Czech petrochemicals industry. One reviewer of the book said the account "captures much of what has led Czechs to the conviction that they live in a corrupted, clientist country – and (paradoxically) then to vote for the ANO movement." When Babiš entered politics he resigned as CEO, but remained sole owner until February 2017, when he was legally obliged to put his companies in trust in order to remain as Minister of Finance.

While Babiš's business activities initially focused mainly on agriculture, he later acquired a large empire of media companies. In 2013, Agrofert purchased the company MAFRA, publisher of two of the biggest Czech newspapers, Lidové noviny and Mladá fronta DNES, and operator of the Óčko television company. Agrofert also owns Radio Impuls, the most listened to radio station in the Czech Republic (as of late 2014). These acquisitions have led critics to question Babis's political motives, amid accusations that he was amassing too much power, and that the media outlets he controls publish sympathetic coverage of him.

Political career

Babiš with Austrian Foreign Minister Sebastian Kurz in February 2015

In 2011, Babiš founded his party, ANO 2011, "to fight corruption and other ills in the country's political system". The party contested the legislative elections in October 2013 and emerged as the second largest party, with 47 seats (of 200) in the Chamber of Deputies. The American political consulting firm, Penn Schoen Berland, was credited with the party's successful result.

In the subsequent coalition government, formed of the Social Democrats, ANO, and the Christian Democrats, Babiš served as the Minister of Finance. During his tenure in this role, Babiš introduced controversial policies such as electronic registration of sales, known as EET, proposed reverse charging of value-added tax, and VAT control statement for companies. His critics claimed he was tightening regulations on small and medium-sized enterprises and sole proprietorship while turning a blind eye to big corporations, to the benefit of his own Agrofert holding. During this time he stated many times that he would like to be the next Prime Minister of the Czech Republic if ANO 2011 led the government.

In May 2015, after the government's decision to extend reduced taxation of biofuels (a segment of the fuel market controlled significantly by companies in the Agrofert portfolio), the opposition initiated a vote of no confidence against the cabinet. On 26 May 2015 while speaking to the Chamber of Deputies, Babiš said that he was forced to enter politics because of "corrupted opposition" (referring to the ODS) that "created him". In November 2016, Babiš criticized alleged links among CEFC China Energy, the Czech Social Democratic Party, and Czech Prime Minister Bohuslav Sobotka, saying that CEFC's focus on private Czech companies "brings no yield to the Czech Republic."

Babiš with Polish Prime Minister Mateusz Morawiecki, Warsaw, Poland, October 2018

European migrant crisis

In September 2015, deputy prime minister Babiš called for NATO intervention against human trafficking in the Mediterranean. After talks on the migrant crisis with NATO Secretary General Jens Stoltenberg, Babiš said that "NATO is not interested in refugees, although Turkey, a NATO member, is their entrance gate to Europe and smugglers operate on Turkish territory".

Babiš rejected the European Union's refugee quotas, saying: "I will not accept refugee quotas [for the Czech Republic]. ... We must react to the needs and fears of the citizens of our country. We must guarantee the security of Czech citizens. Even if we are punished by sanctions." After the 2016 Berlin attack he said that "unfortunately... [Angela Merkel's open-door migration] policy is responsible for this dreadful act. It was she who let migrants enter Germany and the whole of Europe in uncontrolled waves, without papers, therefore without knowing who they really are."

2017 government crisis

Andrej Babiš was sacked from the government by Prime Minister Bohuslav Sobotka on 24 May 2017 after a month-long coalition crisis triggered by allegations that Babiš avoided paying taxes as CEO of Agrofert in 2012.

Prime Minister (2017–present)

Andrej Babiš during his first full day in office with Visegrad Group leaders on 14 December 2017 at the European Council.

Following the 2017 election to the Chamber of Deputies, in which ANO 2011 won with 29% of the vote, and won 78 out of 200 seats, President Miloš Zeman asked Babiš to form a government. The Civic Democratic Party and other parties refused to join a coalition government with Babis, citing the ongoing criminal investigation into alleged EU subsidy fraud and, as a result, on 27 October 2017 Babiš announced that he would try to form a minority government. Freedom and Direct Democracy (SPD) and the Communist Party voiced their willingness to join the government, but were refused by Babiš.

On 6 December 2017, Babiš was appointed the Prime Minister of the Czech Republic. He assumed the office on 13 December 2017, when his government took full control of the executive government. He is the only incumbent head of government to be charged with a crime by the Czech police and prosecutor, as well as both the oldest and the wealthiest Prime Minister in the country's history, and the first Prime Minister from a party other than ODS and ČSSD.

During his first days in office, he attended the European Council summit dealing with fiscal responsibilities, Brexit and migration, and spoke on the phone with new Polish Prime Minister Mateusz Morawiecki regarding the invocation of the Article 7 by the European Commission. His government carried out personnel changes at the ministries, Czech Railways and the Railway Infrastructure Administration.

On 16 January 2018, Babiš's cabinet lost a vote of no confidence by 117 votes to 78.

In February 2018, his cabinet approved the European Fiscal Compact and sent it to the Chamber of Deputies for further approval. They also proposed changes to the Civil Service Act, which has been the subject of controversy since it was passed in 2015 by Bohuslav Sobotka's government, in which Babiš served as Minister of Finance.

Babiš with Bulgarian Prime Minister Boyko Borisov, 16 May 2018

After losing the confidence vote, Babiš's administration continued to carry out personnel changes, meeting with criticism from the opposition. Minister of Health Adam Vojtěch fired Svatopluk Němeček, a former Minister and head of the University Hospital in Ostrava, as well as the director of the Bulovka Hospital. Minister of Industry and Trade Tomáš Hüner and Minister of Interior Lubomír Metnar fired the heads of CzechInvest and Czech Post, respectively.

In March 2018, Babiš ordered three Russian diplomats to leave the country in a show of solidarity with the United Kingdom after a former Russian double agent Sergei Skripal was poisoned in Salisbury.

In June 2018, German Chancellor Angela Merkel said that there had been "no moral or political justification" for the post-war expulsion of ethnic Germans from Czechoslovakia. Babiš responded: "I reject this characterisation – especially when we recall the horrors of Heydrich, Lidice, Ležáky and the killing of our paratroopers. I have the feeling that there is some internal political struggle in Germany now, and it is very unfortunate that old wounds are opening because of it."

In the summer of 2018, Babiš reached a coalition agreement with the Social Democrats. The new cabinet took office after winning a confidence vote on 12 July 2018, with support from the Communist Party.

Controversies

Alleged cooperation with StB

According to the documents of the National Memory Institute in Slovakia, Babiš collaborated with the State Security Police (StB) of communist Czechoslovakia, under the code name agent Bureš. He denies the accusations, and in 2012 sued the institute for defamation. In January 2018, the Bratislava regional court ruled definitively that Babiš was an StB agent. This final court case may not be appealed.

Protest against Babiš in Brno, 10 May 2017
Protest against Babiš in Prague, 17 November 2018

Twelve unrelated cases investigated by StB from 1982 to 1985 were associated with the code name Bureš, according to the Slovak National Memory Institute. Babiš appeared once at the court during the process. The District Court in Bratislava issued a ruling on 26 June 2014 that there was insufficient evidence to put Andrej Babiš on a list of intentional cooperators with StB. The decision was criticised in the Slovak press, and the National Memory Institute announced it would appeal to a higher court. On 30 June 2015, Bratislava's County Court upheld the verdict, but in October 2017 the Slovak Constitutional Court upheld the National Memorial Institute's appeal, annulling the earlier court decisions and finding that Babiš had been an agent of the former communist secret police.

Babiš has also been accused of using his StB background and Communist Party connections to enrich himself. Babiš has denied that he was a StB collaborator, but his close associates include Czech lawyer Libor Široký, now chairman of Agrofert's supervisory board, who is reportedly also a former member of one of the StB units most closely linked to the Soviet KGB. Critics who accuse him of KGB connections also point to his alleged support for the 2014 Russian annexation of Crimea, and his opposition to international sanctions against Russia. When a Lebanese arms dealer with alleged Russian connections was released by Czech authorities instead of being extradited to the United States, and it was revealed that every official involved in the release was an ANO party member or was associated with Babis, he was again accused of having an allegiance to Russia. Opposition MP Miroslav Kalousek said that it no longer mattered what information the Slovak National Memory Institute had about Babiš, because his behaviour as a politician had proven his StB training.

In March 2015, Babiš condemned Russia's annexation of Crimea. In October 2015 Anne Applebaum, a Pulitzer Prize-winning journalist specializing in Russian and Eastern European affairs, listed Babiš among several Eastern European leaders who she considered to be agents of influence for Putin's Russia. Writing in The Washington Post, she suggested that old labels from Soviet Communist days, such as "useful idiots" and "fellow travelers", were no longer adequate to describe Babis and the other figures she had named. To illustrate her point, she listed several quotes from each leader that sounded very similar to each other and to the arguments broadcast at the same time by official Russian news sources.

Babiš responded to Applebaum with a letter to The Washington Post stating that he had no friends in Russia and was an American ally. US journalist Gabriel Meyr challenged those claims by citing three examples of actions Babiš has taken that have furthered Russian policy goals, such as a Czech government loan guarantee to a Russian company with a record of defaults, owned by a close friend of President Putin. Another example was the Czech Finance Ministry's continued racing of the thoroughbred horses owned by Chechen President Ramzan Kadyrov, a close ally of Putin, even though he is under international sanctions. The final example was that Babis had disclosed in 2007 that Agrofert was negotiating to purchase gas from the Czech subsidiary of Gazprom instead of its German supplier.

In February 2016, on the day commemorating the Communist takeover in 1948, hundreds of protesters opposed to Babiš gathered in Wenceslas Square to protest that Babiš was advancing an agenda that would infringe Czech freedoms, described by leaders of the protest as a quiet revolution, happening in gradual steps.

EU subsidies fraud

The farm, owned by one of Babiš' companies, which according to police and OLAF received illegal subsidy from the European Union.
An equestrian facility of the farm resembles stork's nest.

Babiš was accused of illegally obtaining €2 million in EU subsidies designated for small businesses by concealing his ownership of a farm and a convention center called "Storks Nest". Czech police requested that the Lower House lift his parliamentary immunity on two occasions, in September and November 2017. In both cases the Lower House lifted the immunity and the police have initiated criminal proceedings. He is accused of the crime of alleged fraud (§212,Criminal Code, 2009) and of wilful damage to the financial interests of the European Union (§ 260, Criminal Code, 2009) in the criminal conspiracy (§ 89, Art.17, Crime Code (the Czechoslovakian Criminal Code, 1961).

This case was investigated by the European Anti-Fraud Office (OLAF). OLAF's final report was delivered to the Czech officers of the Ministry of Finance on 27 December 2017. Journalist Sabina Slonková published a report of the results on the website Neovlivni.cz on 3 January 2018, concluding that OLAF's final report confirmed the results of the investigation by the Czech Police and prosecutors that the fraud was planned from the beginning. The complete text of the final report translated into Czech was published on the website aktualne.cz on 11 January 2018, with a commentary by Vladimir Piskacek, one of the directors of the Economia AS media company, which publishes Hospodářské noviny, defending the right to publish information openly.

Alleged kidnapping of son

In November 2018, Seznam News television aired an interview with Babiš' son Andrej Babiš Junior (born 1982) in which he alleged that he had been kidnapped by an associate of his father in order to obstruct the corruption inquiry relating to the Stork's Nest Farm. Babiš Junior was quoted as saying he had been held in Crimea, Kaliningrad, Moscow and Kryvyi Rih in Ukraine, to stop him from giving a statement to the police about his involvement in the case. Prime Minister Babiš denied the kidnapping but admitted that his son had entered Crimea, among others, also saying that his son suffers from schizophrenia.

Partnership with Zeman

Babiš has been linked closely to President Miloš Zeman since at least 2001, when Zeman was Prime Minister, and his business interests are alleged to have benefited from the association. In 2001, Zeman oversaw the sale of Unipetrol, a state-owned chemical company, to Babiš. Babiš pulled out of the sale, but later oversaw the sale of the firm to a Polish company. According to Polish reports, the sale was accompanied by substantial bribery, although Babis denies any bribes were paid. The Unipetrol deal is cited often as evidence of a strong partnership between Babiš and Zeman that persists.

Conflicts of interest

Connections between companies in the AGROFERT portfolio

Babis has been criticized by media and opposition politicians for his alleged conflict of interest, as the Minister of Finance and the owner of companies subsidized by EU funding programmes. During a visit to the Czech Republic in March 2014, the German Member of the European Parliament Ingeborg Gräßle expressed concern that someone with such a personal financial interest simultaneously being a leading representative of a state, could not guarantee to the EU that its resources are properly distributed. A 2014 article in the political newspaper Politico commented that "the Czech Republic is now a paradox: a society disgusted with corruption has given huge power to a man whose business interests amount to the biggest conflict of interest in the country’s post-1989 history."

In May 2015, Babis's alleged financial irregularities and accusations from the public and the opposition that he had promoted his companies in government procurements triggered a vote of no confidence against the Bohuslav Sobotka's government, called by the opposition parties ODS, TOP 09, and Dawn. The motion was defeated by 47-105.

On 5 June 2015, a retired senior American intelligence officer published an opinion article using Babiš as an example of a corrupt politician with conflicts of interest and probable ties to Russia. In the article, he speculated whether United States government investigations into bribery and corruption in FIFA may herald more aggressive investigation of other corrupt practices. The article mentioned that several investigations had been launched by a team of police and prosecutor, which were questionable cases that did not hold up in court.

Intimidation

Babiš has a reputation for surrounding himself with senior police officers, security agents, and former Communist informers.

In June 2015, Babiš provoked controversy when a member of parliament, Ladislav Šincl of the Social Democrats (ČSSD), criticised a change in policy from the Finance Ministry on a bill reducing commissions for life insurance mediators in the Chamber of Deputies, and alleged that the benefits to Babiš's business interests may be the cause of the change. On 17 June 2015, Babiš met with Šincl and accused him of corruption and taking bribes from businessman and senator Ivo Valenta, owner of the Synot gambling group. According to witnesses, Babiš brought to the meeting a folder marked with a yellow note labelled Šincl, and started shouting at Šincl that he knew Šincl took bribes from Valenta and was corrupt. He later moved onto his family and Šincl's former jobs.

On 18 June 2015, Babiš admitted he had a folder with Šincl's name, but denied intimidation, saying, "It's not the materials. It's articles from the media. Do the media write lies? I just showed what the media writes, I think they do their job well. When I go to a meeting, I prepare myself so I know who I am dealing with". Babiš's coalition partners ČSSD (Šincl's party) and KDU-ČSL demanded an apology, but Babiš refused, saying that Šincl had lied about him in the Parliament. Prime Minister Bohuslav Sobotka, also the chairman of ČSSD, called a coalition meeting on the same day.

Šincl described Babiš' tactic, of reading potentially damaging facts about him from a file marked with his name, was reminiscent of StB tactics. Miroslav Kalousek, the first deputy chairman of the opposition party TOP09, also accused Babiš of using StB practices, which Babiš denied.

MF Dnes leaked tapes

On 1 May 2017, Twitter account @skupinasuman posted a tape of Babiš's private conversations with an unknown number of people, in which he labelled Minister of Foreign Affairs Lubomír Zaorálek as an "idiot" and attacked investigative journalist Sabina Slonková, among others. On 3 May 2017, a video on YouTube alleged that Andrej Babiš had interfered with the editorial independence of Mladá fronta DNES, the nation's largest quality newspaper by circulation, owned by Babis's trust. In conversation with MF Dnes journalist Marek Přibil he discusses the date of publication of damaging stories about Minister of Interior Milan Chovanec and Minister of Health Miloslav Ludvík. On the tape, Babiš is recorded instructing Přibil to tell František Nachtigall, the director of strategic development, about when and how to publish the stories.

Comments about Lety concentration camp

On 1 September 2016, while visiting Varnsdorf, a city with large Romani population, Babiš said: "What those idiots [journalists] write in newspapers, that the camp in Lety was a concentration camp, that is a lie, it was a labor camp, people who didn't work ended up there". Babiš's comments were heavily criticized by both coalition partners and opposition MPs calling on him to resign. Prime Minister Bohuslav Sobotka condemned the remarks on Facebook, saying that "between populism and extremism there is a thin line and Babiš crossed it" and asked him to "properly apologize and visit Lety to learn about history of our state."

Minister for Human Rights and Equal Opportunities Jiří Dienstbier called for Babiš to step down as Finance Minister and First Deputy Prime Minister. The leaders of both opposition parties, Petr Fiala from ODS and Miroslav Kalousek from TOP 09 also called for Babiš to step down.

Media criticism

Foreign Policy magazine gave Babis the nickname Babisconi, a portmaneau of his surname and the surname of former Italian Prime Minister Silvio Berlusconi, the subject of numerous political and financial scandals. In response, Babiš threatened to sue the magazine, but has never done so.

In August 2015, the Swiss weekly L'Hebdo published an article entitled: "Why do Czech Oligarchs Buy Unprofitable Media Outlets?" examining the purchase of media companies by several Czech business people, and also their connections with Francophone Switzerland. The article focused much of its attention on Babiš, and his purchase of media outlets in the Czech Republic. The author pointed out that Babiš had claimed to invest in Mladá fronta DNES only for profit, but had given no answer when told it was an unprofitable investment, and went on to accuse journalists at Babis's newspapers of doing his work.

Writing in Politico, Adam Drda expressed the view that Andrej Babis is associated with the decline of Czech democracy more than any other single person.

Andrej Babiš with his then-partner (now wife) Monika in 2015

Andrej Babiš was a winner of the Green Pearl prize for the anti-ecological comment of the year 2013:

"We all gave a shit about democracy once. How to explain that regarding the construction of a new highway, (someone has the right to talk about) a badger, an ecological terrorist and that each mayor wants an exit (to his town)."

Personal life

Babiš' first wife was physician Beata (later Beatrice) Adamičová, a schoolmate, whom he married in the 1970s. They had two children, Adriana (born 1979) and Andrej (born 1982), both of whom were involved in the Stork's Nest case. Since 2007 Adriana has been married to Agrofert manager Martin Bobek.

Since the 1990s Babiš has lived with his former secretary Monika Herodesová (born 1974), with whom he has two children, Vivien and Frederik. Both Monika and her brother Martin Herodes were also involved in the Stork's Nest case.

In 2013 Monika changed her surname to Babišová, and they married in 2017.

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References
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http://www.praguemonitor.com/2016/02/26/finmins-opponents-warn-his-creeping-freedom-restriction
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