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Czech PM Faces Fresh Accusations of Conflict of Interest

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Czech Prime Minister Andrej Babis has been accused of a conflict of interest after insisting an exception be made to the country’s implementation of an EU guideline on money-laundering.

“This is a monstrous exception, tailor-made for Babis and his situation,’’ David Ondracka, the country head of Transparency International, a corruption watchdog, tweeted on Tuesday.

Transparency International has accused Babis, the founder of a large business empire that spans areas such as agriculture, food and media, of conflicts of interest in the past.

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Babis is said to have transferred his holding company to a trust fund in order to continue to benefit from national subsidies.

The directive foresees the actual owners of companies, foundations and trusts being entered in a national register, but the Czech exception would apply to trust funds, meaning Babis would not be named as the owner.

The draft is currently heading to parliament, where Babis also needs votes from opposition lawmakers as he faces criticism from the CSSD, partners in the governing coalition.

Jan Hamacek, who leads the CSSD, argues that an exception for trust funds is unnecessary.

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