The politico-economic elites in France are closing the books on the Elf scandal, making an example of three former executives for taking too much for themselves, but without addressing any of the fundamental issues of France's incestuous relations between the state and business. The fact remains that the same elites, mostly graduates of the various ecoles superieure, move seamlessly between government and corporate posts and modify their ethics as needed. France uses "private" businesses for state purposes in a way that goes far beyond what we see in the U.S., and with far less potential for public disclosure.
The biggest corruption trial in French history is winding up, leaving largely untouched the question of political involvement in the siphoning off of [400 million euros] in the late 1980s and early 1990s from Elf, then a state-owned oil group. The prosecution this week sought prison sentences ranging from five to eight years and fines of up to [5 million euros] for the three main figures among the 37 defendants on trial. But the thrust of the prosecution case has centred on pure venality and personal enrichment.In particular this accusation has been levelled against the top three - Loik le Floch-Prigent, the Elf chief executive from 1989-93, Alfred Sirven, who handled the oil company's pay-offs to middle and foreign dignitaries, and André Tarallo, in charge of the oil group's substantial African interests.
However, by no means all the vanished funds were accounted for, and the judge never pressed them hard on whether money ended up with the politicians.
When Mr Le Floch-Prigent began to touch on the sensitive subject of Elf having a political slush fund, he said: "We financed the political process throughout my mandate. . . One political group seemed particularly close to Elf. . . But I ask the bench whether they want me to name names". He never was.
The political shadow behind this trial was that of the late president François Mitterrand who appointed the Elf chief executive and signed every year a secret list of foreign "commissions" the group paid which was then tax deductible.
via the Financial Times (may require subscription)
Posted by Alan at June 7, 2003 04:25 PM