Babis Cashed Out Agrofert Dividends amid EU Investigation

Czech Prime Minister Andrej Babis admitted on Wednesday that he received a dividend of roughly €175m ($200m) last year from his main company, Agrofert, paying himself the amount before transferring the company to a trust. Agrofert paid roughly €30m ($34m) in taxes on that amount, he added, according to news website iDNES.cz.

Babis says he transferred the conglomerate to the trust permanently to comply with Czech and European rules on conflicts of interest. Agrofert, which operates in agriculture, chemicals and food processing, is a recipient of EU subsidies.

The European Union is investigating whether the arrangement complies with its rules, given that Babis, as a member of the European Council, has a say over the EU budget. The prime minister insists that neither he nor his family will regain actual ownership of Agrofert and that the arrangement is in order. However, the Czech news website www.seznamzpravy.cz has previously reported that the trust's bylaws will transfer control to his children once Babis leaves office.

Babis's net worth stands at €3.6bn ($4.1bn), according to Forbes. Through the Hartenberg Fund, he also owns other assets, including dozens of health and fertility clinics across Europe, which he retained even after joining the government late last year.

(Reuters, Max)