Archive | April, 2015

Czech Republic: How bad is Babiš?

An article about billionaire Czech politician Andrej Babiš by UK-based think tankers Andrew Foxall and Ola Cichowlas   of the Henry Jackson Society on the website of Foreign Policy has set the cat among the pigeons. Indeed the highly critical portrait  has sufficiently enraged the Slovak-born finance minister and deputy prime minister, whose ANO movement came second in the 2013 election and now tops the polls, that he has threatened to sue.

The broad thrust of the piece on the Czechs’ ‘oligarch problem’ is a familiar one: that Babiš’ has accumulated a dangerous concentration of economic, political and media power, including expanding newspaper and TV holdings and influence he can wield over public broadcasters; that are huge potential conflicts of interests between his business empire political role (shifts in government policy on bio-fuel have been cited as an obvious example); and that his own personal, professional and business background raise questions about his democratic credentials.

With a Communist family background, he made a pre-1989 career as official in communist-era foreign organisation dealing the petro-chemicals, had contacts with communist-era secret police, which registered him as an informer (wrongly a Slovak court has ruled  – although appeals are ongoing).  His post-1989 business career has been criticised for the possibly legally dubious separation of the original (state-owned) Agrofert company from its Slovak parent and left unanswered questions about foreign-registered companies and funds – and political favours -which helped build up business empire.

Veteran Prague-based business analyst James de Candole does an excellent job here summing up this issues and Czech-speaking readers could do worse than read Tomáš Pergler’s meticulously researched biography.

The FP piece, however, does a less good job. Read More…