Clearstream affair
Encyclopedia
The "Clearstream affair" was a political scandal in France
in the run-up to the 2007 presidential election
.
The name refers to the Luxembourg
bank Clearstream Banking S.A.
, now wholly owned by Deutsche Börse
, which was alleged to have aided many prominent French politicians and companies evade taxes
. It was also suggested that Clearstream might have helped French individuals and companies to launder money
arising from bribes
surrounding the 1991 sale of six La Fayette class frigates
to the Republic of China
. Clearstream vehemently denies the allegations.
on four occasions between May and October 2004. At that time, van Ruymbeke was investigating possible bribes in the 1991 frigate sale. The lists quickly proved to be false, and several of the people named on them pressed charges for "false denunciation".
A list of 895 secret bank accounts was included which were open by numerous personalities from the business world (including Alain Gomez, Peter Martinez, Philippe Delmas) or politics (including Nicolas Sarkozy
, Dominique Strauss-Kahn
, Laurent Fabius
, Alain Madelin
and Jean-Pierre Chevenement
), reportedly passing money for frigates. In particular, lists of secret accounts sent by the raven were trafficked to foreign personalities involved in the Taiwan frigates affair. A survey on the implementation of these fake was then entrusted to judges Jean-Marie d'Huy and Henri Pons.
, who was preparing his (ultimately successful) campaign for the French presidency.
Sarkozy's main political rival on the right-wing of French politics at the time was Interior Minister
Dominique de Villepin
. It later transpired that de Villepin had known about the existence of the lists since at least January 2004. As Interior Minister, he would also have known that French secret services considered the lists to be forgeries
. However, he did not pass this information on to Judge van Ruymbeke. Villepin was indicted on charges of complicity to false denunciation on 18 November 2008, and tried at the Paris Correctional Court in September and October 2009. He was acquitted of the charges on 28 January 2010. Three co-defendants were convicted for their roles in the affair, while a fifth person was acquitted.
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
in the run-up to the 2007 presidential election
French presidential election, 2007
The 2007 French presidential election, the ninth of the Fifth French Republic was held to elect the successor to Jacques Chirac as president of France for a five-year term.The winner, decided on 5 and 6 May 2007, was Nicolas Sarkozy...
.
The name refers to the Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
bank Clearstream Banking S.A.
Clearstream
Clearstream Banking S.A. is the clearing and settlement division of Deutsche Börse, based in Luxembourg and Frankfurt. Clearstream was created in January 2000 through the merger of Cedel International and Deutsche Börse Clearing...
, now wholly owned by Deutsche Börse
Deutsche Börse
Deutsche Börse AG is a marketplace organizer for the trading of shares and other securities. It also is a transaction services provider. It gives companies and investors access to global capital markets. It is a joint stock company and was founded in 1993. The headquarters are in Frankfurt,...
, which was alleged to have aided many prominent French politicians and companies evade taxes
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
. It was also suggested that Clearstream might have helped French individuals and companies to launder money
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
arising from bribes
Bribery
Bribery, a form of corruption, is an act implying money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or...
surrounding the 1991 sale of six La Fayette class frigates
La Fayette class frigate
The La Fayette class units are light multi-mission frigates built by DCN and operated by French Marine Nationale...
to the Republic of China
Republic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...
. Clearstream vehemently denies the allegations.
Beginning of the affair
A list of accounts supposedly held by French individuals at Clearstream was sent anonymously to investigating magistrate Renaud van RuymbekeRenaud Van Ruymbeke
Renaud van Ruymbeke is a French investigative magistrate, well known for specializing in political and financial corruption cases, who investigated on the French-Taiwan frigates Affair, which has been related to the Clearstream scandal, and on the Urba affair.- Bibliography :*Renaud van Ruymbeke,...
on four occasions between May and October 2004. At that time, van Ruymbeke was investigating possible bribes in the 1991 frigate sale. The lists quickly proved to be false, and several of the people named on them pressed charges for "false denunciation".
A list of 895 secret bank accounts was included which were open by numerous personalities from the business world (including Alain Gomez, Peter Martinez, Philippe Delmas) or politics (including Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
, Dominique Strauss-Kahn
Dominique Strauss-Kahn
Dominique Gaston André Strauss-Kahn , often referred to in the media, and by himself, as DSK, is a French economist, lawyer, politician, and member of the French Socialist Party...
, Laurent Fabius
Laurent Fabius
Laurent Fabius is a French Socialist politician. He served as Prime Minister from 17 July 1984 to 20 March 1986. He was 37 years old when he was appointed and is, so far, the youngest Prime Minister of the Fifth Republic.-Early life:...
, Alain Madelin
Alain Madelin
Alain Madelin is a French politician and a former minister of that country.Madelin, a strong supporter of laissez-faire economics, was a candidate in the 2002 French presidential election as the leader of the Démocratie Libérale party, where he scored 3.91% on the first round...
and Jean-Pierre Chevenement
Jean-Pierre Chevènement
Jean-Pierre Chevènement is a French politician. He was Minister of Defense from 1988 to 1991 and Minister of the Interior from 1997 to 2000. He was a presidential candidate in 2002 and since 2008 has been a member of the Senate....
), reportedly passing money for frigates. In particular, lists of secret accounts sent by the raven were trafficked to foreign personalities involved in the Taiwan frigates affair. A survey on the implementation of these fake was then entrusted to judges Jean-Marie d'Huy and Henri Pons.
Political impact
Among those pressing charges was prominent French politician Nicolas SarkozyNicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
, who was preparing his (ultimately successful) campaign for the French presidency.
Sarkozy's main political rival on the right-wing of French politics at the time was Interior Minister
Minister of the Interior (France)
The Minister of the Interior in France is one of the most important governmental cabinet positions, responsible for the following:* The general interior security of the country, with respect to criminal acts or natural catastrophes...
Dominique de Villepin
Dominique de Villepin
Dominique Marie François René Galouzeau de Villepin is a French politician who served as the Prime Minister of France from 31 May 2005 to 17 May 2007....
. It later transpired that de Villepin had known about the existence of the lists since at least January 2004. As Interior Minister, he would also have known that French secret services considered the lists to be forgeries
Forgery
Forgery is the process of making, adapting, or imitating objects, statistics, or documents with the intent to deceive. Copies, studio replicas, and reproductions are not considered forgeries, though they may later become forgeries through knowing and willful misrepresentations. Forging money or...
. However, he did not pass this information on to Judge van Ruymbeke. Villepin was indicted on charges of complicity to false denunciation on 18 November 2008, and tried at the Paris Correctional Court in September and October 2009. He was acquitted of the charges on 28 January 2010. Three co-defendants were convicted for their roles in the affair, while a fifth person was acquitted.