Czech billionaire Babis defends fraud in trial with presidential contest

PRAGUE (Reuters – Former Prime Minister of Czech Andrej Babis was charged with fraud over a subsidy of 2 million euros. This occurred just days before the start of the presidential election, in which he is a favorite.

Babis has been a major force in Czech politics for over ten years, first as a powerful minister of finance and then as prime Minister. In 2021, however, opposition parties combined with Babis to defeat him, despite ANO winning the most seats at parliament.

Babis, now 68, wants to win the presidency with his opposition party and replace Milos Zeman (whose second term expires in March).

However, the Agrofert chemicals and farming, food, media conglomerate owner, who is now a trustee, has been facing conflict of interest allegations for years due to his large business empire.

Babis faces charges that he illegally tap an EU subsidy. This was before he founded his ANO party in 2011 to build the Stork’s Nest conference center near Prague. He also hides his ownership of the project.

Babis denies wrongdoing and has dismissed the case against his as politically motivated. Before entering court on Wednesday, he did not speak with reporters.

Babis could appeal against the sentence, which could see him sentencing to jail. However, observers warn that the trial may turn off some voters who aren’t yet certain about their decision to vote in the presidential election.

Babis is the fifth-richest citizen of the country, according to Forbes 2021. He is also one of the favourites in the election. The first round of voting begins on January 13-14.

Polls show that Babis, Petr Pavel, the former Czech Army chief general and Danuse Nerudova, the former university rector, have equal chances to reach round 2. The second round will see the top two candidates clash on January 27-28.

According to polls, Babis loses in the second round.

Babis’s ANO has maintained its lead in party polls despite the fact that its leader has been accused of conflict of interest.

He was found in conflict by the European Commission because Agrofert, which employed over 30,000 people, tapped development subsidy funds while he was in government.

According to Le Monde newspaper French prosecutors have also been investigating him regarding the purchase in France of property through offshore firms. He has denied any wrongdoing.

(Reporting by Robert Muller, Editing by Jason Hovet and Nick Macfie).