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FRENCH COURT Convicts and Jails Ex-Leaders of Oil Company. After a riveting eight-month trial that gave the French a replay of a decade of corporate malfeasance, a French court has convicted several senior executives of the former French oil company Elf Aquitaine of corruption and sentenced them to jail terms. The senior executives were also fines for their role in bilking Elf of hundreds of millions of dollars while it was still a state-owned company. (New York Times, November 13, 2003, summary by Sherldine Tomlinson). 3 OFFICIALS FROM ELF CONVICTEDOF GRAFT Having been convicted on embezzling company funds, three senior executives of the former French oil company Elf Aquitaine, Loik Le Flock-Prigent, 60, former chief executive; Alfred Sirven, 76, Prigent’s deputy share the same sentence with 5 years in prison and Adre Tarallo, Elf’s African activities coordinator was given 4-year jail term. In terms of fines, the first, Prigent was fined $435,000 while Sirven and Tarallo faced fine worth E1m each. (IHT, 13 Nov 2003, summarized by Hanh Vu). Corruption trial closes of former French Prime Minister. The corruption trial of a former French prime minister with close political ties to President Jacques Chirac has ended with a verdict expected Jan. 30, 2004. In closing arguments, lawyers for Alain Juppe argued he shouldn't be held accountable for a long-running jobs scandal at Paris City Hall dating back to Chirac’s 18-years as the Paris mayor. Prosecutors allege that city funds were used to pay members of Chirac’s center-right party, known by the initials RPR and that Juppe, the deputy mayor for finance, knew of the payments. (Associated Press Oct 16 2003 summary by Sherldine Tomlinson). French public
prosecutor demands suspended sentence for Juppe over corruption charges. The French public prosecutor has demanded an
eight-month suspended prison sentence for Alain Juppe, the former prime
minister and presidential hopeful who is facing corruption charges for his
role in alleged party financing abuses. Juppe has consistently denied any
knowledge of the way outside companies were being compelled to take on RPR
workers, even though these included his own secretary. Juppe has also denied
that the seven RPR workers whose salaries were paid by the town hall had fake
jobs. (Financial Times 11 Oct 2003 summary by Sherldine Tomlinson). Former French PM starts corruption trial. The former conservative Prime Minister of France, Alain Juppe, has gone on trial for his alleged role in a system of illicit financing for the former political party of President Jacques Chirac. The alleged fraud took place in the late 1980s and early 1990s, when Chirac was Mayor of Paris and Mr Juppe was secretary general of the RPR party. (BBC News, September 30, 2003, summary by Sherldine Tomlinson). Elf trial hit by lawyer´s revelations. According to reports, the Elf corruption trial was disrupted for several hours as defence lawyers demanded that the investigating magistrate mainly responsible for bringing the case to court be reprimanded for publishing a revealing book about the case. Eva Joly, who retired last year after becoming France’s best-known anti-corruption judge, has written about the surveillance, mysterious breakings and death threats to which she was subjected during her eight-year Elf investigation. Thirty-seven people are on trial in Paris in connection with claims that about 2bn francs was siphoned from the accounts of the then state-owned oil giant Elf during the 1980s and early 1990s. The money was allegedly paid out in illegal sweeteners and used to fund a variety of political parties. (The Guardian, June 17, 2003, summary by Sherldine Tomlinson). Prosecutor seeks prison terms for 3 Men. A French
prosecutor demanded the maximum prison sentence for the former president of
state-run oil giant Elf Aquitaine, saying he and two other senior officials
were at the heart of a vast corruption network that lined their pockets and
secretly bankrolled politicians and African leaders. Loik Le Floch-Prigent
faces a myriad of charges, including abuse of company funds, publication of
false information and presentation of inaccurate accounts. Prosecutors say
that during his tenure, from 1989 to 1993, about $300 million was embezzled
from the company, the forerunner of today's TotalFinaElf. Prosecutor Catherine
Pignon told the court that Le Floch-Prigent, his former second-in-command
Alfred Sirven, and former top Africa executive Andre Tarallo, were “at the
heart of a system” that allowed corruption to prosper at the company for
years, with millions misdirected in the form of commissions, inflated bills
and other means. (Assoicated
Press June 05, 2003 summary by Sherldine Tomlinson). Cresson charged with corruption. According to judicial officials, a Belgian investigating magistrate has charged a former French Prime Minister, with counterfeiting and personally benefiting from EU contracts. The charges follow an inquiry into allegations made by Belgian Euro-MP Nelly Maes in 1999, which accused Ms Cresson of operating a fraudulent training scheme. Ms Cresson is faced with accusations over the hiring of her dentist, who was allegedly paid hundreds of thousands of francs in fictitious salaries as a scientific consultant. She was also alleged to have produced forged documents to hide the fact that he had not been genuinely employed. Several members of her staff had also been charged with corruption. (BBC News, March 25, 2003, summary by Sherldine Tomlinson). Elf Oil Corruption Trial Opens in PARIS. Former president of Elf Aquitaine, Le Floch-Prigent, and his deputy, Alfred Sirven and the 35 other former company officials have all been investigated for abuse of company funds. France alleges that Elf paid out and received enormous commissions, inflated bills and used other devices to enrich a chosen few, from leaders of African nations where Elf had interests to some of the defendants. Investigators claimed that Sirven paid out an average of $1 million a year for six years on jewellery alone. (New York Times, March 18, 2003, summary by Sherldine Tomlinson). court overturns
former foreign minister’s conviction. A French appeals court has
acquitted former Foreign Minster Roland Dumas in a corruption case that had
riveted France. Dumas, 80, was convicted in May 2001 of receiving lavish
gifts and cash from the former state-owned oil company Elf Aquitaine while he
was serving as foreign minister. Many are complaining that high officials get
favored treatment. (NandoTimes,
January 29, 2003 summary by Sherldine Tomlinson). French court refuses release in Elf fraud scandal. The Paris appeals court refused to free Alfred Sirven, a key figure in a sensational scandal at the former state-run oil company Elf sentenced last year to four years in jail for abuse of company funds. The court rejected the appeal by Sirven, 75, whose lawyers had argued he was too old for prison and would not flee. Sirven, the former number two at Elf, was sentenced to four years in prison last year and has already served 19 months of that sentence. Former Foreign Minister Roland Dumas, his ex-lover Christine Deviers-Joncour, former Elf chairman Loik Le Floch-Prigent and Sirven were convicted of fraud in May 2001 for misusing 9.83 million euros of company funds. The Elf executives were said to have diverted the funds to pay Dumas and Deviers-Joncour in a murky scandal linked to the sale of French military frigates to Taiwan. The four will appeal their convictions in November. (Reuters, September 23, 2002 summary by Sherldine Tomlinson). BUGGING
SCANDAL LANDS MITTERRAND ALLIES IN JAIL
Twenty years after the event,
the full truth of the scandal known as France’s Watergate may finally come
out following a decision this week to send for trial 12 men accused of
running a huge, secret and illegal wiretapping operation for François
Mitterrand. The Paris public prosecutor’s
move follows a long inquiry into the activities of the late president’s
Elysée palace anti-terrorist cell, which on his orders tapped the phones of
some 150 people, from lawyers and rival politicians to journalists and an
actor, between 1983 and 1986. “We are
a long, long way from what a democracy should expect after such a monumental
violation of people’s rights,” said Antoine Comte, one of several lawyers who
were the victims of eavesdropping. Several figures still prominent today,
including Louis Schweitzer, head of Renault, and Christian Prouteau, the head
of the anti-terrorist cell, are accused of illegal phone-tapping, maintaining
computerized records of private information, and infringing privacy
laws. (Source: The Guardian, Jon
Henley, Paris, August 9, 2002,
Summary by: Shatarupa Chaki). PARIS MOVES TO
RAISE CORPORATE STANDARDS In its first
formal reaction to the global crisis in investor confidence following the
Enron and WorldCom scandals, the French government promised measures to improve
standards of corporate governance and financial reporting in France. Among
the measures proposed by Francis Mer, finance minister, are the formal
requirements that companies create audit and remuneration committees and
those auditing firms are barred from providing consultancy services to the
same clients. Mer cited that he would submit a bill to the National Assembly
in the autumn to merge the COB and the Financial Markets Council. He said the
new body, which was proposed by the previous government and echoes the
creation of the Financial Services Authority in the UK, should have "a
sanctions regime and undisputed authority". He also said that he wanted
banking and insurance sector surveillance bodies to work together more
closely. (Financial Times, July 12,
2002, summary by Sherldine
Tomlinson). Paris, COURT RULES FOR PROBE OF CHIRAC. A French court upheld an inquiry into suspect cash payments for trips that President Jacques Chirac took abroad in the 1990s. Chirac enjoys judicial immunity as head of state; nevertheless he could be called for questioning if he loses the May 5 vote to Lionel Jospin, the Socialist presidential candidate. Accusations center on a series of luxury trips to New York, Tokyo and an Indian Ocean resort from 1992 to 1995, when Chirac was mayor of Paris. Chirac has strongly rejected claims that the money stemmed from graft in Paris City Hall under his 1977-95 tenure. (International Herald Tribune, 21 March, 2002, summary by Pavlidis George). MONEY LAUNDERING AND STAINED REPUTATIONS- CALL FOR REFORM OF JUDICIAL SYSTEM The plethora of high profile judicial investigations into business leaders and politicians which started in the 1990s on the basis of public anger over several corruption scandals, are now coming to a conclusion. The process, which has left several stained reputations, has now made the detention of top bankers a routine affair in France. Ever since the 90s, the judges have asserted their independence and have become very familiar names as a result of their crusade against corruption. However in recent weeks, it is the magistrates and not the arrested bankers and politicians, who are under the firing line for alleged excesses resulting in a chorus of demands for the reform of the French judicial system. The controversy was sparked when Daniel Bouton, chairman of Societe Generale Bank and two of his top associates were held for questioning on money laundering and alleged tax evasion, amongst 90 others and several other banks like Bank Leumi, American Express Bank and Barclays, which are also being investigated on the same. Mr. Bouton known and publicly endorsed to be a respectable banker was being held responsible for not enriching himself, but for not having enforced the money laundering legislation. His arrest has roused France’s already exasperated business community, and the banking federation has been calling for clarifications of the 1996 money- laundering laws. It is believed that French Bank cheques were being endorsed to new beneficiaries after which they were being cashed at money changers in Israel and then sent to France through other International Correspondent banking networks and were finally being cleared by banks such as Societe Generale. The business community has complained that more than half the heads of France’s listed companies have been investigated for one offence or the other, which was evidence of the extent of abuse of the judicial system. The fate of business executives like Mr. Bouton and politicians such as former finance minister, Dominique Strauss-Kahn who was acquitted of suspicions of forgery after two- years of investigations, has led to the demand for the reform of the judicial system which is seen as being extremely slow and hampered by the dual role of magistrates as prosecutors and judges. The necessity of French companies with international interests to mention the proceedings along with all legal documentation that goes with new mergers, listings and acquisitions has become particularly embarrassing due to the long delays and the impossibility of assuring the interested parties that those being investigated are innocent under the law unless proved otherwise. Whilst the need to clarify the law and specify the role of banks in curbing money laundering has been accepted, politicians who campaigned against tax evasion and laundering have not absolved bankers of their role in being vigilant against laundering crimes. With the impending presidential and legislative elections in April this year, any reforms however are likely to be delayed, as no party would do it at such a precarious moment. (Financial Times, January 24, 2002, summary by Aruna Balakrishnan). Fugitive French official faces extradition The French government has requested to extradite a former Dominican Republic aide to the French President, Jacques Chirac. He is to face questioning relating to corruption allegations. Didier Schuller who was the mayor of Paris vanished in 1995 after he was accused of diverting public funds to Chirac RPR party. Correspondents say that the questioning of Mr. Schuller could damage Mr. Chirac bid for re-election later this year. (BBC News, January 31, 2002, summary by Sherldine Tomlinson). JOSPIN CORRUPTION CHARGES DROPPED. A regional association of taxpayers in Toulouse had accused French Prime Minister, Lionel Jospin, of employing two people in fictitious jobs at an economic development agency, which he ran during the 1990s. The investigation against Mr Jospin has been dropped because the investigating magistrate in the case, Serge Lemoine, ruled there was no evidence of any wrongdoing. Mr Jospin's office had said that the allegations were "unfounded and politically motivated." Nevertheless, Mr Jospin had agreed to testify if necessary. This willingness contrasts with President Chirac's refusal to be questioned over similar allegations. (Source: BBC news, November 27, 2001, summary by Pavlidis George). MONEY LAUNDERING PROBE AT BARCLAYS BANK The Managing Director of Barclays Bank, France, Henri-Paul Pellegrino, and two other executives were taken in for questioning. The Managing Director was placed under formal investigation as per the system in France, which allows for this, only after a judge feels that there is evidence of breach of the law. It is alleged that in France, between 1996 and now, a network of Jewish Association has been laundering illegally acquired money through Barclays Bank and the bank has not conducted proper background checks on these accounts despite the fact that large amounts of money have been transacted through them in cash. Over all 80 people, including six rabbis are under investigation in this case. Earlier this year in June, The AXA SA Chairman, Claude Bebear and the Chief executive of the French Insurer, Henri de Castries were placed under formal investigation over allegations of tax evasion and money laundering. The recent move involving the Barclays Bank is being seen as a stern message from regulators, which is expected to cause reputational damage to the financial organisations irrespective of any subsequent prosecution. (International Herald Tribune, November 20, 2001, summary by Aruna Balakrishnan). CHIRAC SPARED FROM SCANDAL HEARINGS DUE TO PRESIDENTIAL IMMUNITY- COURT RULING. The highest court in France has ruled that President Jacques Chirac cannot be forced to testify on the allegations of favouritism and misappropriation of public money against him, as long as he is president. At an earlier hearing the prosecutor had argued that Chirac could appear as witness, provided he was willing to, so long as he was not the accused and the case was not relevant to his tenure as President. However, France’s constitution on presidential immunity has always been vague leaving it open to debate. Hence this decision is likely to set a precedence in future and is expected to have implications even on lawmakers who enjoy parliamentary immunity. (CNN, October 10, 2001, summary by Aruna Balakrishnan).) FORMER FINANCE MINISTER ABSOLVED OF CORRUPTION CHARGES. Former Finance Minister Dominique Strauss-Kahn was absolved of the charges of financial wrongdoing at Elf Aquitaine, a state-run oil giant. However, he is still on trial on the other charge of forgery of bills pertaining to the work he did for National Insurance for French students, a health insurance company for over 800,000 students, with an imminent 3- year prison term if indicted. These charges had put an end to his successful political run in November 1999.(Associated Press, October 3, 2001, summary by Aruna Balakrishnan). ANTI- CORRUPTION LEGISLATOR STANDS RESOLUTE IN HIS INTENT. Mr. Arnaud Montebourg, a rather young socialist legislator, has emerged as a corruption- busting politician in a country known for its habits of political cronyism. Proving the skeptics wrong, he has managed to gather the support of several, though not the total, number of assembly members, for his petition of impeachment of President Jacques Chirac. President Chirac is being investigated on charges of illicit fund raising when he was Mayor of Paris, creating non- existent jobs for his party members and using funds from ambiguous sources for his luxury trips, but has claimed presidential immunity from judicial proceedings. Mr. Montebourg, a non- conformist, has surprised political circles by actually disclosing his personal assets and public spending on his website, which is unheard of in the French system as there is no obligation on legislators to do so. He seems to be setting an example for his demands for more accountability from politicians, greater powers to the Parliament, independence of judiciary and power to the people. A lawyer by profession, Mr Montebourg was motivated to run for office in 1997 so that he could change things by working from inside, and transform the French political system. Just as his impeachment petition was gaining momentum, certain Socialist leaders started to work against him by insulting and ridiculing him under the fear that an impeachment proposal from the Socialist- controlled assembly would be seen by the public as a witch hunt in the run up to elections. However, despite the fact that his petition is largely seen as a lost cause, Mr Montebourg, stays resolute in his intent and efforts. (International Herald Tribune, September 12, 2001, summary by Aruna Balakrishnan) Paris, CHIRAC WINS FRESH ROUND IN LEGAL
BATTLE. Graft-busting magistrates conceded that they lack the necessary
legal authority to question French President Jacques Chirac over a serious
flights-for-cash scandal. Chirac had already ruled out testifying, cloaking himself
in presidential immunity. Basically, the magistrates decided not
to push him on the issue, despite the fact that Paris Prosecutor, Jean-Pierre
Dintilhac, wants the president called in as a witness to the case.
Apparently, there are suspect cash payments of up to 2.4 million francs
($312,200) made by Chirac for trips between 1992 and 1995. Legal sources
expect Dintilhac to appeal against the decision in
the law courts. Meanwhile, the 68-year-old president, who runs for a
re-election next year, denies any wrongdoing. (Source: Reuters, July
17,
2001, summary by Pavlidis George). FORMER FRENCH FINANCE MINISTER SEES VICTORY IN ELF CASE. Dominique Strauss-Kahn, former French Finance Minister, who resigned in 1999 under corruption allegations expects to cleared of any role in the Elf-Aquitaine scandal. He believes the investigating magistrate, Eva Joly, will declare lack of prosecutorial evidence. He is a close ally of Lionel Jospin, Prime Minister, and a clean bill of political health for Strauss-Kahn would enhance Jospin’s election campaign next year. However, a further case against Strauss-Kahn, involving fraudulent dating of fee justification documents remains pending. He believes the court will not consider this serious as both parties were in agreement. (International Herald Tribune, June 30, 2001, summary by Marg Reynolds). FRENCH MAN EXPOSES JUDICIAL CORRUPTION, GIVEN ASYLUM IN U.S. Karim Christian Kamal has been given political asylum in the United States by Judge Ronald N. Ohata following his claim that he was targeted by French authorities for trying to expose judicial corruption and a child sex ring. Kamal, of Moroccan descent, claimed his wife involved and ensnared their 12-year old daughter in an alleged pedophile ring and that he was wrongfully prosecuted in France by authorities who claimed he was a liar. Kamal thanked the American justice system and is relieved that he can now focus on fighting for the custody of his daughter. (Excite.com, (AP) June 23, 2001, summary by Marg Reynolds). ASSEMBLY DEBATES BILL THAT WOULD STRIP PRESIDENT OF IMMUNITY A bill designed to strip Jacques Chirac, President, from immunity from prosecution to face corruption charges may be approved in the Socialist-dominated Assembly next week, but will unlikely pass the Conservative-dominated Senate. Chirac’s popularity ratings remain high, but public opinion surveys suggest citizens would like him to give evidence in the case. Arnaud Montebourg, Socialist Assembly member has collected 30 of 58 signatures required for the first step to impeach the President, but some analysts believe immunity legislation may be a less aggressive and more publicly supported approach. Michele Alliot-Marie, Rally for the Republic Party President, believes Socialists are merely trying to tarnish the President’s name. (NYT, June 13, 2001, summary by Marg Reynolds). COMMUNIST CHIEF FACES SLUSH FUND RETRIAL Robert Hue, leader of the Communist Party, is one of twenty co-defendants at a retrial in which Hue’s party was accused of accepting illicit funds from companies that won public works contracts in Communist-run towns. Both trials have been annulled on technical grounds, Hue denies charges against him, and he could be stripped of his civil rights if convicted ahead of his possible candidacy in the presidential election next year. Also named in the corruption trial is Jean-Dominique Deschamps, former Chairman of the Compagnie Generale des Eaux, now known as Vivendi. (AOL News (Reuters), June 11, 2001, summary by Marg Reynolds). THE UPHILL BATTLE AGAINST CORRUPTION A chance at a clean break with a culture pushed by some of the French political elite which includes threats, lack of funds, active sabotage, payoffs and corruption may be pushed by a brave corps of French magistrates. The recent scandal of senior officials involving the formerly state-owned Elf-Aquitaine may not result in jail terms for those convicted and appeals may be so protracted as to result in those convicted to protest their human rights have been violated. Eva Joly, magistrate, believes international pressure is required for the investigation to continue as prosecution of the openly defiant, supposedly worldly, French politicians who regularly dirty their laundry will bring the country lasting benefits. Charles Pasqua, former Interior Minister and member of the European parliament, has claimed immunity from prosecution; however, Ms. Joly has appealed directly to Parliament to lift his immunity. (WP, June 3, 2001, summary by Marg Reynolds). EX-MINISTER, FORMER MISTRESS AND THREE EXECUTIVES GO TO JAIL FOR CORRUPTION IN PETROLEUM COMPANY Roland Dumas, former French Foreign Minister, has been convicted in a huge corruption case, however his lawyer, Jean-Rene Farthouat, stated his sentence was considerably less than the two years which prosecutors has requested. Christine Deviers-Joncours was sentenced to three years with eighteen months suspended and a $200,000 fine; Loik Le Floch-Prigent has been sentenced to a three and a half year term and a $260,000 fine; Alfred Sirven was sentenced to four years and a $300,000 fine; and a middleman was sentenced to eighteen months and a $150,000 fine. (NYT, May 30, 2001, summary by Marg Reynolds). CHIRAC IMPEACHMENT MOVEMENT GROWS Arnaud Montebourg, ruling Socialist Party member, has secured 30 of the 58 signatures required to launch a Bill to be considered by Parliament for President Jacques Chirac to be impeached for his alleged role in a party financing scandal. Vincent Peillon, Party spokesman, stated Montebourg’s approach was unlikely to succeed and impeachment was not a right solution at this time. If the required 58 signatures to the resolution are garnered, Chirac faces trial by the High Court of Justice, composed of 12 National Assembly and 12 Senate members. (Yahoo News (AFP), May 21, 2001, summary by Marg Reynolds). JOURNALISTS LAUNCH ‘NAME AND SHAME’ CAMPAIGN A blacklist has been launched by the group ‘Journalists Without Borders’, in conjunction with the release of the group’s annual report, which listed thirty-two journalists that were killed during 2000 and seventy-four who remained in prison at year end. Eleven of the journalists were killed in Europe, which suggests the march of democracy that was hoped for in transition regimes has slipped back into old, authoritarian, intolerant ways. Included on the ‘name and shame’ list of groups or heads-of-state are: the Basque separatist gang ETA, kidnap gangs in Chechnya, leaders on both sides of the bloody conflict in Colombia, Cuba’s Fidel Castro, Iraq’s Saddam Hussein, North Korea’s Kim Jong-il, Democratic Republic of Congo’s Joseph Kabila, Russia’s Vladimir Putin, the Ukraine’s Leonid Kuchma, Belarus’ Alexander Lukashenko, and Afghanistan’s Mullah Mohammad Omar. (Sur Info Network, May 7, 2001, summary by Marg Reynolds). JUDGE DROPS CORRUPTION INVESTIGATION INTO CHIRAC Eric Halphen, prosecutor, was forced under French law to end his investigation of the illegal political party funding scandal he had amassed against President Jacques Chirac, as the head of state is protected by presidential immunity. Only the High Court of Justice is in a position to go forward with the investigation; however, MPs of the National Assembly may make a decision on impeachment proceedings. Lionel Jospin, Socialist Prime Minister, is expected to be Chirac’s main rival in the election to be held next year. Jospin’s party is also believed to have benefited from the kickbacks, therefore, he has not capitalized on the scandal. (The Scotsman Online, Apr 27, 2001, summary by Marg Reynolds). PRESIDENT AGAIN NAMED BY WITNESS IN PARIS BRIBERY SCANDAL. Francois Ciolina, former deputy head of the Public Planning and Construction Office in Paris, stated to Judge Eric Halphen that contracts had been awarded with organized favoritism on a fraudulent basis during the time Jacques Chirac, President, had been mayor of Paris. Mr. Chirac was mayor from 1977 to 1995, has repeatedly denied accusations of involvement in bribe taking, and Ciolina is himself under investigation for influence peddling. In a tape from the now deceased Jean-Claude Mery, it was stated that Mr. Chirac was present when a contractor paid 5 million francs ($685,000) in return for a lucrative building contract. A total of six pending corruption cases linked to funding for the Rally for the Republic (RPR) party and Mr. Chirac’s tenure as mayor may undermine his re-election chances next year. (AOL News (Reuters), Apr 4, 2001, summary by Marg Reynolds). NEW ‘INVESTIGATIVE CULTURE’ BRINGS DELUGE OF ANTI-CORRUPTION ACTIVISM High level corruption of politics and business affairs is being shaken by a new ‘investigative culture’ comprised of more aggressive analysts, journalists, and investigative magistrates. (WP, Mar. 25, 2001, summary by Marg Reynolds). PRESIDENT REFUSES SUMMONS IN CORRUPTION CASE President Jacques Chirac refused a summons by Judge Eric Halphen to appear as a ‘simple witness’ on the grounds it violated the constitutional separation of powers. A kickback scheme dating to the years Chirac was mayor of Paris was organized by his Rally for the Republic party and Chirac’s direct implication was documented in a videotape by Jean-Claude Mery. The scandal involves bribes from building contractors to finance Chirac’s and other political parties. It has been suggested France should soon change the constitutional text on presidential immunity. (Yahoo News (AP), Mar. 29, 2001, summary by Marg Reynolds). CORRUPTION INVESTIGATIONS CASCADE TO BRITAIN. Arcadi Gaydamak, Russian-born multi-millionaire with French, Israeli, Canadian and Angolan passports is wanted for questioning by magistrates about a 450 million illegal arms sale to Angola which lead to the arrest of Jean Christophe Mitterand in December. The international arrest warrant issued also includes fraud, abuse of trust and trafficking in influence. In a second related case, Pierre Falcone, a Franco-Brazilian arms dealer, is under arrest in Paris on the same charges. In a third related case, Jacques Attali, former Mitterand advisor and former head of the European Bank for Reconstruction and Development, is being investigated for receiving 150,000 from Pierre Falcone to help with a 44 million tax claim. Philippe Courroye and Isabelle Prevost-Desprez are the investigating magistrates in the money laundering and tax avoidance inquiry into the financial affairs of Gaydamak and Falcone. Jose Eduardo dos Santos, Angolan President, confirmed last week that he had been instrumental in acquisition of arms from eastern Europe. (The Guardian, Mar. 26, 2001, summary by Marg Reynolds). SEVENTEEN
‘CORRUPT’ MAYORS CELEBRATE VICTORY IN FRENCH POLLS, EIGHT HAVE CRIMINAL
RECORDS Eight newly elected
municipal mayors with criminal records demonstrate the rejection of voters of
‘clean’ and politically correct leaders.
Amongst the election victors are:
Patrick Balkany with a 15-month suspended sentence for employing
servants on taxpayer funds; Gilles Catoire with an 8-month suspended sentence
for false accountancy; Francois Bernadin with an 18-month suspended sentence
for fraud; Elisabeth Hermanville with an 18-month suspended sentence for
theft of equipment worth Fr. 400,000 and also Alain Juppe from Bordeaux and
Robert Hue from Montigny. A further
nine mayors were returned to office although charged with offenses such as
fraud or favoritism. (The Times, Mar.
20, 2001, summary by Marg Reynolds). FORMER
FOREIGN MINISTER CORRUPTION TRIAL, DEFENCE OPENS FINAL AGRUMENTS The corruption trial of former
Elf-Aquitaine key employees continues, with Pierre-Francois Veil, defense
lawyer, stating Loik Le Floch-Pigent could not have known of his alleged
crimes, therefore the case against him proves nothing. Defendants face charges of misappropriating
company assets and Jean-Pierre Champrenault, state prosecutor, noted it was a
‘mafia-type operation’. He has
recommended a two-year sentence with a 2.5 million franc fine for Roland
Dumas; a three-year term with one-year suspended and a 1 million franc fine
for Christine Deviers-Joncour; and a five-year sentence with a 2.5 million
franc fine for each of Loik Le Floch-Pigent and Alfred Sirven. (China Times
Interactive (AFP), Mar. 20, 2001, summary by Marg Reynolds). PRESDIENT
CHIRAC DOGGED BY CORRUPTION CLAIMS
Arnaud Montebourg, Socialist deputy, has presented an impeachment
motion to parliament against Jacques Chirac.
Other parties are involved, however, the suspected abuses result from
investigation of RPR party financing scams during the time Chirac was mayor
of Paris. Michel Roussin, former chief
aide to Chirac, was arrest last week and further investigations include
allegations of huge bribes for public works contracts from construction
companies. Montebourgh staed 22 of the
58 signatures required for the motion to be debated have been pledged. (Yahoo News (Reuters), Mar. 19, 2001,
summary by Marg Reynolds). ELF
AQUITAINE: THE CORRUPTION COVER-UP
TODAY IN PARIS Fugitive, Alfred
Sirven, former executive of Elf-Aquitaine, together with Roland Dumas, former
French Foreign Minister; Loik Le Floch-Prigent, ex-Director of Elf-Aquitaine;
and Christine Deviers-Joncour, Dumas’ former mistress; face charges of fraud
for allegedly siphoning millions of dollars in illegal slush funds from 1989
to 1993. Authorities believe Sirven to
have corruption information involving high-ranking French politicians to be
investigated at the hearing.
(Deutsche Welle, Mar. 12, 2001, summary by Marg Reynolds). EX-OIL
EXECUTIVE RETURNS TO COURT Alfred
Sirven, extradited last month from four years in the Philippines, is on trial
in a major misappropriation scheme involving $400 million slush fund to buy
influence in France and around the world.
Sirven was formerly in No. 2 position at Elf Aquitaine, taken over
last year by the French-Belgian group, TotalFina. (Yahoo News, Mar. 11, 2001, summary by
Marg Reynolds). FORMER
FRENCH OFFICIAL TRIED ON CORRUPTION CHARGES
Roland Dumas, formerly Foreign Minister, could receive up to five
years in prison, but will more likely face fines for his part in the scandal
involving Elf Squitaine. Dumas is
being tried for illegally receiving funds through his then-mistress,
Christine Deviers-Joncour, in the amount of $9.18 million. Also involved in the scandal are Loik Le
Floch-Progent, former Elf President and Alfred Sivren, formerly second
highest at Elf. (Institute for
Global Ethics, Jan. 24, 2001, summary by Marg Reynolds). MITTERAND
SON SAYS INNOCENT IN ANGOLA ARMS SCANDAL
Jean-Christophe Mitterand, son of former President Francois Mitterand,
is presently facing allegations of arms trafficking. He denies wrongdoing, but has admitted that
$1.8 million was deposited in a Swiss bank account from billionaire arms
dealer, Pierre Falcone. This is one
strand linked to the slush funds and corruption scams at Elf Aquitaine. Investigations are continuing into the
early 1990’s sale of $550 million of Russian arms to Angola by Pierre
Falcone. (Yahoo News (Reuters), Mar.
9, 2001, summary by Marg Reynolds). WE HONOR EVA JOLY of Paris FRANCE/COLOMBIA: CRUSADERS AGAINST CORRUPTION – EXCERPT In the interesting political movement today, informally known as the ‘global rebellion against corruption’, two brave women began a process of change and reform and refused to be intimidated by the power elites. Eva Joly, a judge in Paris, led the investigation into payoffs and thievery at the formerly state-owned oil company Elf Aquitaine. Ingrid Betacourt, Member of the Colombian House of Representatives, caused inquiries into big commission payments on a dubious arms deal and also probed into whether former President Ernesto Samper’s election campaign has been financed by drug lords. The women have explained their motivation and the movement they symbolize in recent memoirs. The complete article by David Ignatius of the Washington Post may be viewed at http://www.washingtonpost.com/wp-dyn/articles/A17189-2001Mar3.html (WP, Mar. 4, 2001, summary by Marg Reynolds). France has accused Swiss banks of being lax on money laundering and tax evasion and this has angered Swiss Bankers Assoc. (NY Times February 26, 2001). PARIS. French foreign minister, Roland Dumas, once France's
fifth-highest ranking figure, threatened magistrates and refused to explain
the origin of dubious funds. These funds were used to buy a dozen
antique Greek states from his former mistress, Christine Deviers-Joncour, who
is also on trial. She testified that she bought the statues at Mr.
Dumas's request. The court was
trying to establish whether Mr. Dumas was aware at the time that the 264,000
francs used to buy the statues came from Elf Aquitaine. He denied
knowing the origin of the funds. Deputy Prosecutor Jean-Pierre Champreanult
had asked Mr. Dumas to explain the origin of about 10 million francs( $1.4
million) deposited in a series of cash deposits to his bank account over a
period of eight years before the current case broke. Mr. Dumas is on
trail with six others for benefiting from commissions paid out in
16-billion-franc contract for the sale of six frigates to Taiwan. His former
mistress, Miss Deviers Joncour, has admitted to receiving the equivalent of
65 million francs to lobby Mr. Dumas to approve the sale. She claims
she was placed in a phony job by Elf Aquitaine to lobby the minister to agree
to the sale of six frigates to Taiwan. (IHT, February 1,2001 summary by B.
Gray). Paris.
FUGITVE ARRESTED. A corruption scandal fugitive Alfred Sirven married to a
Filippina Vilma Medina, was arrested in Philippines. Sriven, 74, a number two
oil executive at Elf Aquitaine, was tried in absentia in the context of a
multimillion dollar corruption case against former French Foreigh ministerm
Roland Dumas and his mistress Christine Deviers-Joncour who got expensive gifts
($40,000 worth antique statues and $9 million). Mr. Dumas threatened by
saying that one day he will “take care” of a certain magistrate. The
presiding judge, Sophie Portier suspended the session temporarily and Mr.
Duma apologized. (NY Times, Feb. 3, 2001, p. A6). DEAD
MAN PAINTS FRENCH PRESIDENT AS CORRUPT
Jean-Claude Mery left a post-humus video-taped confession in which he
stated city contractors has paid him millions of dollars, with the full
knowledge of then-mayor of Paris, Jacques Chirac. Chirac denied these accusations, which also
involve the Socialist Party and the Liberal Democrat Party. Alleged vote-rigging by Chirac’s successor
as mayor, Jean Tiberi, is under investigation and some newspapers and
prosecutors have likened political corruption in France to that of Italy,
where several thousand politicians have been accused of crimes in the last
decade. (Chicago Tribune, Dec. 22,
2000, summary by Marg Reynolds). LAGOS
STATE UNCOVERS 4,065 GHOST WORKERS. The Payroll Verification Committee of the
Lagos State Government has found fraudulent salary overpayments amounting to
N15m, with 4,065 ghost civil workers discovered in the month of August alone.
Mr. A.O. Doherty, chairman of the committee and also the Special Adviser to
Governor Bola Tinubu on Information Technology, further revealed that a total
of N7.2m in gratuities and pension payments for 62 pensioners were duplicated
in different pension paypoints. Six dead staff and four retired staff were
also accounted for in the monthly payroll of three schools in the Mushin
Branch of the Teaching Service Commission (TESCOM). The recurrence on the
payroll of 1,351 teachers, 1,852 civil servants and 844 pensioners are being
investigated. Governor Tinubu has promised to improve the living conditions
of workers in the state. (All Africa, 14 November 2000, summary by Debbie
Uy). Paris, FRENCH LAWYER SEEKS THE TESTIMONY OF CHIRAC IN CORRUPTION
CASE. On Tuesday, Pierre Divier, a French lawyer, asked a court to call
French President Jacques Chirac to testify about a Paris corruption case. Mr.
Chirac was the mayor of Paris in the period 1977-1995 and allegedly he
ignored three audits indicating irregularities in a contract for printing
city documents. Mr. Chirac who, as President, is by law immune from prosecution
as long as he is in office, has denied the accusations. (Source: Reuters,
November 21, 2000, summary by Pavlidis George). Paris, FORMER FINANCE MINISTER FACES CHARGES OF FALSIFYING DOCUMENTS. The former Socialist finance minister of France, Dominique Strauss-Kahn, will stand trial on the charge that he backdated documents in order to justify consulting fees. Mr. Strauss-Kahn has denied the accusation that he received from a student health insurance fund the equivalent of $100,000 for allegedly phony legal consulting job. A court is also examining whether Strauss-Kahn concealed evidence of an alleged corruption scandal, by keeping videotape made by a man who accused President Jacques Chirac of participating in illegal party financing (Source: The Associated Press, 26 Oct, 2000, summary by Pavlidis George). PARIS - Former finance minister
Dominique Strauss-Kahn is to stand trial on charges of document falsification
in a case, which prompted him to resign from the French government over a
year ago. Strauss-Kahn received around $100,000 for serving as an alleged
consultant with a student health insurance fund. He is charged with
justifying his fees by backdating documents.
In addition, the former minister has also been placed under formal
investigation in another corruption scandal involving the former state-run
oil giant Elf. (AP Press, October 26,
2000. Summary by Fabian Camacho). FASHION DESIGNER INVOLVED INTO CORRUPTION SCANDAL, Karl Lagerfeld, the famous fashion designer has cropped up as a figure in a corruption scandal involving French politician Jacques Chirac, reports the Guardian. Strauss-Kahn, former Finance Minister apparently received evidence implicating Chirac in a "vast covert fundraising operation" from a lawyer named Alain Belot who was hoping to arrange a "massive tax break" for Lagerfeld. According to the Guardian, the fashion designer faced a major investigation last year after it was discovered he had not paid any tax in six years. (Source: Tradeweave Insight, September 26, 2000, summary by Pavlidis George). CHIRAC´S CORRUPTION SCANDAL,
Strauss-Kahn, former Finance Minister and close friend of Prime Minister
Lionel Jospin, faces charges of obstructing justice. Strauss-Kahn was given a
video by lawyer Alain Belot when he was still in charge of the Finance
Ministry. French media said that Belot had demanded a huge tax cut for one of
his clients, fashion designer Karl Lagerfeld, as payment for the video, in
which a former Chirac aide detailed a substantial slush fund set up to help
the president's center-right Rally for the Republic (RPR) party. "I deny
all political connections that people are trying to make as well as any
connections with any tax dossier," Strauss-Kahn told the French press.
Nevertheless, Socialist Prime Minister Lionel Jospin, anxious to limit the
fallout for his coalition, promised a swift inquiry. (Source: YAHOO NEWS
(Reuters), September 25, 2000, summary by Pavlidis George). Former Prime Minister, Mrs. Cresson, who was a member of European
Commission Trichet's Problem. Jean-Claude Trichet the governor of the
Banque de France. (See item 6, http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid= http://www.lemonde.fr/article/0,2320,seq-2284-87840-QUO,00.html) Headline, 25-AUGUST-2000, Link
may not work after a few days.
http://www.voila.co.uk/News/afp/eco/000818002007.5dzb73l4.html The Index of Economic Freedom (by Driscoll-Holmes-Kirkpatrick) for 2001 places France in the “Mostly Free” category with a rank of 39 (Ranks range from 1 for Hong Kong to 155 for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation analysis indicates that countries free from economic regulation are less corrupt. After allowing for some exceptions by 20% trimming, the correlation is near 0.9. |
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copyright: Hrishikesh
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