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Blow for Hollande as ex-minister charged in tax fraud probe

Critics demand to know if Hollande, other top officials were aware of account held by the minister, who was once responsible for cracking down on tax evasion

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AFPPTI Paris
Last Updated : Apr 03 2013 | 9:10 AM IST
France's ex-budget minister Jerome Cahuzac was charged in a tax fraud probe after he admitted having a foreign bank account, dealing a fresh blow to President Francois Hollande's embattled government.

Critics were quick to pounce on the scandal, demanding to know if Hollande or other top officials were aware of the account held by the minister once responsible for cracking down on tax evasion.

In a contrite statement on his website, Cahuzac admitted to having had the foreign account for around 20 years and said he was "devastated by guilt".

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The ex-minister's lawyer, Jean Veil, said Cahuzac had been charged with "laundering the proceeds of tax fraud" and would cooperate with investigators.

Cahuzac -- the first minister in Hollande's administration to face a criminal probe -- said he had met with investigating magistrates yesterday and admitted to having a foreign account.

Cahuzac said the account contained about 6,00,000 euros ($7,70,000), had not been touched in about a dozen years and that he had ordered the funds transferred to his French account.

His lawyer said the account, originally opened in Switzerland, had been transferred to Singapore in 2009 and that the amount laundered was equivalent to about 30,000 euros.

Cahuzac begged forgiveness from Hollande, his former government colleagues, fellow lawmakers, French voters and his family and his friends.

"I was caught in a spiral of lies and lost my way. I am devastated by guilt," he said. "It was an unspeakable mistake to think that I could avoid confronting a past that I wanted to consider behind me. I will now face this reality with all transparency."

Hollande, languishing in the opinion polls less than a year into his five-year term, said his former minister had committed an "unforgivable moral error" and that the courts would decide his fate.

"Lying is not acceptable in a democracy," Prime Minister Jean-Marc Ayrault added in a statement. "It is now up to (Cahuzac) to fully take responsibility before the justice system."

Aides to Hollande said late yesterday Cahuzac had lied to the president "face to face", as well as to lawmakers in the National Assembly and on the sidelines of cabinet meetings.

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First Published: Apr 03 2013 | 9:08 AM IST

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