Publication: AFX News on Yahoo Issued: Date: 2005-12-21 Reporter: Reporter: Reporter:

More Raids in France's Thales Corruption Probe

 

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AFX News on Yahoo
Date 2005-12-21

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PARIS AFX - French police raided a key division of the defence ministry as part of a probe into corruption allegations by a former executive of French defence electronics group Thales SA, sources close to the inquiry said.

The raid came a day after a dozen police officers searched Thales (Paris: FR0000121329 - news) headquarters for almost 10 hours, as well as the home of businessman Gerard Bertinetti, who played a key role in a 2002 deal between Thales and the defence ministry's general armament commission (DGA).

A search was also carried out today at the home of a former DGA engineer.

At Thales headquarters in the Paris suburb of Neuilly-sur-Seine police assisted by a magistrate seized a large number of files, accountant data and copies of computer disks.

Michel Josserand, former head of Thales' engineering and consulting unit, accused Thales of corrupt practices during an investigation into the attribution of contracts for a tramway system under construction in the French town of Nice.

Magistrates in Paris opened an investigation in July as a result of Josserand's claims.

In a newspaper interview later in September, he gave a detailed description of the alleged system, accusing the company of organising a centralised slush fund to bribe and corrupt officials to win contracts.

At the time the company issued a formal denial of the allegations, stressing that Josserand had been sacked for his involvement in 'irregularities'.

A company spokesman said yesterday that Thales was offering its full cooperation, but declined to give details of the raid.
'Thales intends to totally cooperate with the judicial authorities in this matter,' the spokesman said.

At the time of the allegations the company filed a complaint against the newspaper Le Monde, which carried the allegations, and Josserand for defamation.

In comments published by the respected French daily, Josserand alleged that Thales had constructed a secret internal system to pay commissions that totalled as much as 2 pct of the company's annual sales.

Josserand said the system was known only to a few people in the Thales holding company, Thales International, and the executives at the top of the group.

Sources close to the investigation said Wednesday that
evidence turned up during the search of Thales headquarters appeared to back up allegations made by Josserand on the payment of commissions, but it was not immediately clear whether there was any foul play.

With acknowledgement to AFX News on Yahoo.