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🇵🇾 Paraguay /Conflict & Security

Brussels suspends part of Czech agricultural payments over possible conflict of interest

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Official statement Under investigation
  • The European Commission has suspended some rural development aid to the Czech Republic over a possible conflict of interest involving Prime Minister Andrej Babiš.
  • The suspension does not cover direct Common Agricultural Policy payments, which the Commission considers low risk if beneficiary selection involves no discretion.
  • Brussels has told Czech authorities to take corrective action and will continue monitoring the system, while a related EU-funds fraud case involving Jana Nagyová remains part of the background.

Brussels has suspended part of the European Union’s agricultural support for the Czech Republic, citing a possible conflict of interest involving Prime Minister Andrej Babiš.

The measure applies only to aid from the European Agricultural Fund for Rural Development, which the European Commission considers more exposed to conflicts of interest. It does not cover direct payments under the Common Agricultural Policy, which appear to carry a low risk as long as beneficiary selection is not discretionary, agriculture spokeswoman Louise Bogey said.

Possible conflict of interests in relation to the management of cohesion policy and agricultural funds.

· European CommissionThe Commission’s assessment formed the basis for suspending part of the Czech Republic’s rural development aid.

After what it called a thorough assessment, the Commission concluded that Babiš faces a possible conflict of interest in the management of cohesion policy and agricultural funds. It also said a trust fund created by Babiš does not sufficiently resolve the situation.

Bogey said the Czech prime minister must not take measures that could create a conflict of interest. Czech authorities must adopt appropriate steps both to prevent such situations in areas under his responsibility and to address circumstances that could objectively appear to involve one.

Must not take any measure that could involve a conflict of interests.

· Louise BogeyThe European Commission agriculture spokeswoman described the restriction placed on the Czech prime minister.

Until those steps are taken, Brussels has asked the Czech authorities not to declare spending from operations dating back to Dec. 9 if they involve cohesion funds and entities controlled by or associated with Babiš. Only projects or payments unaffected by a conflict of interest may support reimbursement requests to the Commission. Brussels said it would closely monitor the current system and any changes.

The decision follows a Prague appeals court ruling on Aug. 31 that upheld the conviction of Czech lawmaker Jana Nagyová for fraud involving EU funds. Nagyová had advised Babiš in a 2007 operation in which a company from his Agrofert agricultural group was separated from the group to obtain €2 million in small-business aid before later returning to Agrofert. Investigations began after Babiš entered politics in 2013, and he was charged in the case but currently has immunity.

Only projects or payments not affected by a conflict of interests may be used to support reimbursement requests to the Commission.

· Louise BogeyShe explained which Czech projects could still qualify for EU reimbursement.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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