Czech state fund sued Agrofert for non-return of subsidies for CZK 5 mil.

16 February 2022

The state Support and Guarantee Fund for Agriculture and Forestry (PGRLF) has sued the Agrofert group due to non-return of subsidies for five million crowns. According to the fund, four Agrofert companies, whose revenues amounted to approximately 161 billion crowns the year before, were illegally drawing subsidies for small and medium-sized enterprises. The companies rejected the error and the return of subsidies. According to the server, Agrofert spokesman Pavel Heřmanský did not want to comment on this.

According to the State Register of Real Owners, the real owner of Agrofert is MP and former Prime Minister Andrej Babiš (YES), although due to the Conflict of Interest Act, in 2017 he invested his shares in trust funds. The controversial subsidies from PGRLF were received by the companies ZEMOS, AGS AGRO České Budějovice, ZS Vilémov and SPV Pelhřimov from Agrofert in the years 2010 to 2013, even before Babiš’s entry into the government. During the inspection last year, the fund came to the conclusion that the support for crop and animal insurance was received by these companies unjustifiably, because at the time of drawing they did not meet the status of small and medium-sized companies. He therefore asked for a refund.

Agrofert’s companies refused to return the subsidies for five million crowns, so PGRLF intervened in the lawsuit. “A court settlement has been reached,” Barbora Šenfeldová, a spokeswoman for the fund, told iROZHLAS.cz. She did not want to provide more information.

Due to the dispute over the return of subsidies, Agrofert cannot draw further support from the fund. According to the subsidy conditions, the applicant for support must not have arrears to the state or other institutions, including PGRLF. The fund is a joint stock company whose sole owner is the Ministry of Agriculture.

Source: iROZHLAS.cz and CTK

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