PARIS: President Sarkozy was caught up in a long-simmering kickbacks scandal when police in Luxembourg named him as the creator of a company that handled tens of millions of pounds in illegal funds.
An inquiry appears to implicate Mr Sarkozy in a case involving the sale of French submarines to Pakistan in 1994. It will strengthen suspicions of French investigators that money from the contract was funneled to finance a 1995 presidential campaign managed by Mr Sarkozy, who was then Budget Minister.
Luxembourg police, working for the French judges, said that, in 1994, Mr Sarkozy directly supervised the creation of a Luxembourg offshore company called Heine. Its purpose was to channel the secret payments.
Eventually, part of the funds that passed through Luxembourg came back to France to finance French political campaigns, the police report said.
In 1995, references lead us to believe in the existence of a form of retro-commission to pay for political campaigns in France.
http://www.jang.com.pk/jang/jun2010-daily/03-06-2010/u33414.htm