Former PM and Czech election favorite ordered to repay CZK 5 billion in funds

With the Czech general election just over a month away, a new twist has raised the stakes: the government demands that former Prime Minister Andrej Babiš' conglomerate Agrofert repay more than EUR 200 million (CZK 4.9 billion) in subsidies. The move adds pressure to an already closely watched contest set for Oct. 3-4, where Babiš and his populist, right-wing ANO party are comfortably the front-runners.

The case centers on Agrofert, the agriculture and chemicals firm founded by Babiš. Courts have ruled that Agrofert improperly received subsidies while he was in office from 2017 to 2021, despite his transfer of the firm into two trust funds. Judges determined he continued to control the company, making it ineligible for the payments.

European news website POLITICO reports that Agriculture Minister Marek Výborný Thursday announced the repayment figure for the first time, saying Agrofert must return exactly EUR 208 million (CZK 5.1 billion). Of that, CZK 4.24 billion were EU direct payments, with CZK 860 million from national subsidies.

“Based on the facts known to me and the Supreme Administrative Court’s decision, which the Constitutional Court confirmed at the end of April, we are moving forward with proceedings to reclaim payments made during that period to companies ultimately owned by Babiš,” Výborný said.

Babiš dismissed the decision as politically motivated. “Minister Výborný has been abusing his position and officials for political battles and only wants to gain visibility before the elections. The whole coalition is obsessed with Babiš and Agrofert,” he said.

Polls this week place Babiš’ populist ANO party at 33 percent, far ahead of the governing Together (Spolu) coalition at 20 percent. The government has faced backlash over unpopular pension reforms, inflation, and high energy costs, while Babiš campaigns on nationalist themes and promises to end Czech ammunition deliveries to Ukraine.

In a separate development, Prague’s High Court overturned a previous acquittal of Babiš in a related EUR 2 million (CZK 49 million) EU subsidy fraud case. The case now returns to a lower court, which cannot clear him again without new evidence. If he takes office, parliament would need to vote on lifting his immunity.

Both Babiš and co-defendant Jana Nagyová, a former adviser and now European Parliament member, deny wrongdoing and call the cases politically motivated.