Sarkozy pressured on Pakistan arms deal allegations | world | Hindustan Times
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Sarkozy pressured on Pakistan arms deal allegations

Three Socialist deputies spoke out after extracts from a Luxembourg police report published yesterday alleged that a company set up with Sarkozy's approval channelled money from arms deal commissions to fund political activities in France.

world Updated: Jun 03, 2010 19:07 IST

French opposition lawmakers today called on President Nicolas Sarkozy to give all details of any links to suspected kickbacks on arms deals allegedly used to fund political campaigns.

Three Socialist deputies spoke out after extracts from a Luxembourg police report published yesterday alleged that a company set up with Sarkozy's approval channelled money from arms deal commissions to fund political activities in France.

French investigators have since 2008 been probing allegations that the cancelling of commissions for one of the arms deals prompted an attack that killed 11 French engineers in Pakistan in 2002.

News website Mediapart quoted a Luxembourg police report as saying that Sarkozy oversaw the establishment in Luxembourg of two companies, Heine and Eurolux, when he was budget minister under Prime Minister Edouard Balladur.

Balladur and Sarkozy have repeatedly dismissed allegations of illegal party funding.

But Mediapart quoted the Luxembourg police as saying, "The agreements on the creation of the two companies appear to have come directly from Prime Minister Balladur and Finance (Budget) Minister Nicolas Sarkozy."