French president denies allegations of illegal campaign contributions

By Kim Willsher, Los Angeles Times

July 7, 2010 12 AM PT

Reporting from Paris — French President Nicolas Sarkozy on Tuesday vehemently denied published allegations that he received illegal campaign contributions from the nation’s richest woman, Liliane Bettencourt, just before his election in 2007.

The accusation, if true, would mark the first time the French leader has been directly implicated in the unfolding scandal involving the L’Oreal heiress’ billions. It also would be another blow to his conservative administration, which has been hit by allegations that led to the resignations of two ministers.

“I would love it so much if the country could excite itself over the big problems … rather than get wrapped up in the first horror,” the president said.

Sarkozy, whose poll ratings have plummeted to the lowest levels since he was elected, described the claims as “a slander with only one goal, to smear, with no basis in reality.”

The allegation was made by one of Bettencourt’s former accountants, who told the investigative website Mediapart that the payment of nearly $200,000 was made to Sarkozy’s presidential campaign via Eric Woerth, treasurer of the French leader’s ruling Union for a Popular Movement, or UMP.

Claire Thibout, the accountant, said she was asked to withdraw the cash from the heiress’ bank account by Bettencourt’s financial advisor in March 2007, shortly before Sarkozy was elected. Thibout said she was told that the money was “to fund Sarkozy’s presidential campaign.”

Thibout’s lawyer confirmed the allegations to French journalists and said police had been informed.

The accusation is also damaging to Woerth, who is labor minister as well as the UMP treasurer. French election rules limit donations to individuals to $5,800 and to political parties to $9,400. The maximum for cash donations is $189.

Woerth previously faced repeated calls to resign after it was revealed that his wife worked for Bettencourt, handling part of her fortune, while he was budget minister. The heiress was later found to have $98 million in Swiss bank accounts.

Woerth also vehemently denied receiving the donation, insisting that he had “never touched an illegal euro.” The Elysee Palace said the allegations were “totally false.”

According to Thibout, who worked for Bettencourt and her late husband, Andre, from 1995 to 2008, the couple’s luxury home in the chic Paris suburb of Neuilly-sur-Seine was visited by “a procession” of conservative politicians coming for lunch and dinner and leaving with “their envelope.”

Sarkozy, the mayor of Neuilly-sur-Seine during part of that time, was a frequent visitor, she said in the Mediapart interview.

“Nicolas Sarkozy also got his envelope,” she said. “It would happen in one of the small ground floor living rooms, near the dining room. It happened usually after the meal. Everyone in the house knew that Sarkozy went to see the Bettencourts to get money. He was a regular.”

The president’s approval rating in the polls has dived to 26% amid the allegations, and the scandal of “L’Affaire Bettencourt,” as it has become known, shows no sign of easing.

Two junior government ministers resigned Sunday after scandals over spending thousands of taxpayers’ euros on private jet travel and Cuban cigars.

Opposition Socialists have called for a magistrate to carry out an independent investigation. Their party spokesman, Benoit Hamon, said the accusations were “extremely grave.”

“This cannot go on,” he said.

Willsher is a special correspondent.