Prague, March 22 (CTK) – PM Bohuslav Sobotka has asked the agriculture minister to propose ways to minimise the impact of a fine the EU may impose on Prague for a clash of interest in the distribution of farming subsidies in connection with Jaroslav Faltynek, ANO deputy head and former Agrofert board member.
The EC has proposed a fine of 800,000 euros for the Czech Republic.
In his letter to Minister Marian Jurecka (Christian Democrats, KDU-CSL), Sobotka (Social Democrats, CSSD) also asked him to propose changes to prevent similar troubles.
The affair is to be subsequently discussed by the cabinet comprised of the CSSD, ANO and the KDU-CSL.
According to several web servers, an EU check has shown that Faltynek faced a conflict of interest in the distribution of agricultural subsidies.
He was a member of the board of Agrofert, a chemical, agricultural and food holding, and, at the same time, he controlled the distribution of subsidies as a member of the State Agricultural Intervention Fund (SZIF) board.
Sobotka asked Jurecka to inform him whether a clash of interest might have occurred.
“I ask you to comment on the affair and propose steps to be taken to minimise its impact on the Czech Republic. I also ask for information on what sources will be used to cover the possible fine,” Sobotka wrote.
Furthermore, he asked what changes will be made as far as the rules of personnel filling of bodies such as the SZIF are concerned.
The EC says that apart from Faltynek, a clash of interest was also faced by SZIF supervisory board chairman Ladislav Velebny (CSSD) and SZIF member and lawmaker Petr Kudela (KDU-CSL).
Deputy PM, Finance Minister and former Agrofert owner Andrej Babis said earlier on Wednesday that no clash of interest occurred.
He said Jurecka should protest against the accusation and possibly file a legal action against the fine, which has not taken effect yet.
The Czech Republic has submitted a request for the launch of conciliation proceedings in Brussels. The SZIF wants the EC to withdraw the fine. If the fine were definitively imposed, the SZIF is reportedly ready to initiate its challenging at the European Court of Law.
