Czech President Petr Pavel has signed amendments to the country’s conflict of interest law, introducing stricter regulations on media ownership by senior politicians and rules concerning the acceptance of subsidies and incentives. The amended law, known as “lex Babis,” will come into effect next year, and it aims to prevent conflicts of interest and enhance transparency in political affairs.

Under the new rules, politicians will be prohibited from transferring media ownership to close associates or trust funds. The law also introduces higher fines for breaches of these regulations. Notably, the tightened regulations do not extend to online media due to the lack of established regulations for this domain.

The amendments are part of a broader law on political parties that involves reorganizing the Office for Supervision of the Management of Political Parties and Movements. A new five-member board, comprising the chair and other members of the office, will assume some powers currently held by the chair of the office from next year.

The changes primarily affect Members of Parliament, Senators, members of the government, and the President, extending the ban on broadcasting and publishing periodicals to these officials. The ban applies to the actual owner of the media operator to prevent circumvention.

However, the approved amendment does include exceptions for media companies. The ban won’t apply to media published by political parties, their institutes, or companies under their control, nor to media operators exempt from publishing annual financial reports.

Fines are stipulated for violations of these regulations, with an official committing an offense via a company facing potential fines of up to 3% of the company’s assets. The authority could also impose corrective measures such as the sale of the media outlet before resorting to fines.

The amendment also eases restrictions on the use of data from asset disclosures of senior politicians, applying only to specific officials.

The aim of these amendments is to provide a more balanced framework for the Office for Supervision of the Management of Political Parties and Movements. The changes aim to ensure coordination among the office’s members and enhance their oversight activities. The Office monitors the transparency of political parties’ financial management, conducts audits, and oversees the transparency of election campaigns.

President Pavel, while supportive of the amendment, highlighted certain flaws in the new legislation in a letter to the lower house chair, requesting further adjustments to remedy these issues and enable him to fulfill his legal obligations.

The amendments reflect efforts to enhance transparency, accountability, and ethical practices within the realm of politics and media ownership in the Czech Republic.

Article by Prague Forum