Liliane Bettencourt - Political Scandal

Political Scandal

In June 2010 during the Bettencourt affair, Bettencourt became embroiled in a high-level French political scandal after other details of the tape recordings made by her butler became public. The tapes allegedly picked up conversations between Bettencourt and her financial adviser, Patrice de Maistre, which indicate that Bettencourt may have avoided paying taxes by keeping a substantial amount of cash in undeclared Swiss bank accounts. The tapes also allegedly captured a conversation between Bettencourt and Éric Woerth, who was soliciting a job for his wife managing Bettencourt’s wealth, while he was acting as budget minister and running a high-profile campaign to catch wealthy tax evaders. Moreover, Bettencourt received a €30 million tax rebate while Woerth was budget minister.

In July 2010 the scandal appeared to widen after Bettencourt’s former accountant, Claire Thibout, alleged in an interview with the French investigative web-site Mediapart, that conservative French politicians were frequently given envelopes stuffed with cash at the Bettencourt’s mansion in Neuilly-sur-Seine. She alleged that Woerth, while acting as treasurer for the Union for a Popular Movement (UMP), was given an envelope containing €150,000 in cash in March 2007 towards the presidential campaign of Nicolas Sarkozy. She also made, then retracted, a claim that Sarkozy was a frequent visitor to the Bettencourt’s home while he was mayor of Neuilly-sur-Seine from 1983 to 2002 and received envelopes containing cash. A few days later, she affirmed to receive pressure from the French police in order to retract her testimony about Nicolas Sarkozy's illegal cash. Mr Sarkozy and Mr Woerth both deny wrongdoing. Following these allegations, French police raided the home and office of de Maistre, who heads Clymène, the company owned by Bettencourt to manage her wealth. Political donations are limited to €7,500 for political parties and €4,600 for individuals. Contributions above €150 must be paid by cheque with the donor clearly identified.