POLITICO: Czech MEP found guilty in €2 million EU subsidy fraud case

European Parliament lawmaker Jana Nagyová has been found guilty of EU subsidy fraud in a case involving around €2 million in funding linked to Agrofert, the agriculture conglomerate founded by Czech Prime Minister Andrej Babiš, POLITICO reports.

Prague’s High Court upheld a lower court ruling on August 31, sentencing Nagyová, a Patriots for Europe MEP and former adviser to Babiš, to a suspended three-year prison term with a five-year probation period. She was also fined approximately €20,000 for subsidy fraud and harming the EU’s financial interests.

Nagyová has repeatedly denied the allegations. Her lawyer said she plans to appeal the verdict to the Czech Supreme Court. The European Parliament waived her parliamentary immunity in April.

The ruling concludes another stage in a long-running investigation conducted by Czech authorities and the European Anti-Fraud Office (OLAF).

Prosecutors accused Nagyová of helping restructure Čapí Hnízdo (Stork’s Nest), a recreational complex in central Czechia, by separating it from Agrofert and presenting it as an independent company. Prosecutors said the arrangement was intended to allow the facility to qualify for EU subsidies reserved for small and medium-sized enterprises. Agrofert later regained ownership of the site.

The case initially involved both Nagyová and Babiš. However, Prague’s municipal court separated the proceedings after the Czech parliament declined in March to lift Babiš’s parliamentary immunity. Proceedings against the prime minister will remain suspended for the duration of his mandate. Babiš has denied any wrongdoing.

Babiš placed Agrofert into a trust fund after returning as prime minister in December and maintains that he no longer has ties to the conglomerate he founded. Critics, however, argue that the new ownership structure has not fully addressed concerns over potential conflicts of interest.

By Vafa Guliyeva