EU says Czech PM in conflict of interest, wants money back

The European Commission says Czech Prime Minister Andrej Babis must return millions of euros subsidies after a draft audit report found the billionaire in a conflict of interest, Czech media reported Saturday.

The Commission conducted the audit in January and February, suspecting Babis of taking decisions on EU subsidies as a politician but drawing them as an entrepreneur.

It found Babis, the second wealthiest Czech, still rakes in profits from the Agrofert food, chemicals and media holding he founded.

The Commission, which halted subsidies to Agrofert pending the audit verdict, said it wanted the Czech Republic to return the equivalent of 17.4 million euros (USD 19.5 million) in subsidies drawn counter to the rules.

The 64-year-old Slovak-born Babis transferred Agrofert to two trust funds in February 2017 -- months before he became prime minister -- to comply with conflict of interest regulations.

But citing the funds' articles of association, the Commission said that "Mr Babis is the settlor and the sole beneficiary of these Trust Funds."
In an emotional speech in parliament, he called the newspaper story "a filthy lie" and accused lawmakers of "having no other topics but Agrofert."
The Commission declined to comment on the matter on Friday. Its spokesperson told AFP that it "never comments on ongoing audit procedures and certainly not on leaks."