More charges rock France in cash scam

July 09, 2010 11:23 pm | Updated November 07, 2016 11:42 pm IST - Paris:

Liliane Bettencourt,  L'Oreal's heiress. Photo: AP

Liliane Bettencourt, L'Oreal's heiress. Photo: AP

French President Nicolas Sarkozy's right wing government continues to be in defensive mode on Friday, accusing investigative journalists of adopting “fascist methods” as fresh charges surfaced that members of the government accepted illegal cash payments from France's richest woman.

Liliane Bettencourt (87), whose family founded the cosmetics giant l'Oreal and whose personal fortune is estimated at over €17 billions, regularly made cash payments to right wing politicians, her former accountant alleged during questioning by police.

However, Claire Thibout on Thursday denied she had ever named President Sarkozy as a direct recipient, and said a website which published an interview with her had “misinterpreted” her words. The President's closest adviser said he was “satisfied” the truth had been established since Ms. Thibout's retraction had exonerated the Head of State. French police on Friday carried out searches in the home and offices of Patrice de Maistre Ms. Bettencourt's wealth manager after Ms. Thibout stuck to her guns during questioning and said he had passed envelopes full of cash to several prominent right wing politicians. In return, newspapers have alleged, Ms. Bettencourt was spared enquiries into tax evasion and fraud.

The accountant alleged she had withdrawn €50,000 in cash, in March 2007 just prior to Mr. Sarkozy's election. An additional €100,000, drawn from a bank in Switzerland, was given to Labour Minister Eric Woerth, treasurer of the ruling centre-right UMP party, she said.

The wealth manager, Mr. Patrice de Maistre, has denied all allegations. But Ms. Thibout got unexpected support from Ms. Bettencourt's former secretary who said “everyone knew” that money was being given to politicians.

The burgeoning nature of the scandal which has now reached the highest echelons of the State has resulted in calls for the resignation of Mr. Woerth. Critics of Mr. Sarkozy say there was a clear conflict of interest. “The party treasurer cannot double up as Minister for Budget where he is expected to crack down on tax evaders. Mr. Woerth was taking with one hand so he could not crack the whip against Ms. Bettencourt with the other,” said commentator Alain Duhamel. Mr. Sarkozy's closest advisers have launched a unified attack against the press, especially the website Mediapart which had been breaking stories every day. They have also accused the Opposition Soicialist Party of “joining the wolves”.

Several defamation suits have been filed — by Edwy Plenel the editor of Mediapart against the spokesman of Mr. Sarkozy's party, by Mr. Woerth against the Socialist Party and by his wife against several journalists and opposition politicians.

The weather in Paris has been hot and muggy and this political crisis, which has all the ingredients of high drama — sleaze, big money, political bigwigs and the rich and famous — is proving better entertainment than most TV soaps. The French are glued to their sets every evening, ignoring mainstream entertainment channels to watch 24 hour news.

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