PRAGUE — In a high-profile legal ruling that has roiled the Czech political landscape just months after Prime Minister Andrej Babiš formed his new government, a municipal court in Prague found former close aide Jana Nagyová guilty of fraud connected to a $2 million European Union subsidy scheme on Monday. The court handed Nagyová a three-year suspended prison sentence and ordered her to pay a fine of 500,000 Czech koruna, equal to approximately $24,000. The verdict is not binding, as Nagyová retains the right to file an appeal to challenge the conviction.
The case, one of the most controversial political legal matters in modern Czech history, names both Nagyová and Babiš, a populist billionaire who began his third term as prime minister in December 2024, as co-defendants. The fraud allegation centers on the Stork’s Nest farm, a property that was deliberately restructured to qualify for EU agricultural subsidies earmarked exclusively for small and medium-sized enterprises.
Originally owned by Agrofert, the large industrial conglomerate controlled by Babiš, the farm was transferred into the names of Babiš’s family members to meet the small-business eligibility criteria for the funding. After securing the $2 million in subsidies, full ownership of the property was transferred back to Agrofert — a company that would never have qualified for the targeted funding on its own. Agrofert has since returned the disputed subsidy to authorities.
Unlike Nagyová, who currently serves as a member of the European Parliament and has already had her legal immunity lifted by EU legislative bodies, Babiš retains parliamentary immunity from criminal prosecution. In March, lawmakers in the lower chamber of the Czech Parliament voted down a motion to revoke Babiš’s immunity, a decision that means any trial against the sitting prime minister cannot proceed until his current term ends in 2029. Babiš has repeatedly denied any wrongdoing, framing the entire case as a politically motivated attack against his administration.
Babiš’s return to the prime minister’s office came after his populist political movement ANO — which translates to YES in Czech — secured a decisive victory in October national elections. He went on to form a narrow governing coalition with two small right-wing and populist parties: the anti-immigrant Freedom and Direct Democracy party, and the right-wing Motorists party. The coalition’s stated policy agenda marks a notable shift from the previous Czech government, including plans to reduce Czech military and political support for Ukraine amid the ongoing Russian invasion, and to push back against a number of flagship European Union policy initiatives. The conviction of Babiš’s former closest associate is expected to amplify domestic tensions, with opposition leaders already calling for greater transparency and accountability for the new administration.