By Robert Graham, Financial Times EFL
Stiff sentences were handed out on Wednesday to the three central figures in France’s biggest ever corruption trial involving the diversion of €300m from Elf [n/k/a TotalFina Elf], the former state oil group, for personal enrichment and bribes during the late eighties and early nineties. The sentences bring to an end an investigation stretching back over eight years and which has thrown light on the corruption rampant in the final years of the late Francois Mitterrand’s second term in office as president. A total of 37 people stood trial in this case, preceded by an earlier one involving corrupting charges - rejected on appeal - against former foreign minister Roland Dumas.
Elf, set up as a state run company by Gen Charles de Gaulle to ensure French independent sources of oil, had long been used as an unofficial arm of French foreign policy, as well as to provide under-the-table funds to political parties. But this system was exploited by Loik le Floch-Prigent, the head of Elf from 1989-1993, and a group of cronies to their own personal benefit under the protection of President Mitterrand. On Wednesday Mr le Floch-Prigent was given a five year prison sentence along with Alfred Sirven, Elf’s general affairs director and André Tarallo, in charge of the group’s African operations. The court also handed down fines of euros 2m for Mr Tarallo; euros1m for Mr Sirven and €350,000 for Mr Le Floch-Prigent. This reflected the degree of their enrichment, balanced by the extent to which stolen funds had been recovered in offshore accounts. |