The Elf scandal started in 1994 with an ordinary trial of the dubious conditions in which Elf oil company and the Crédit Lyonais funded Bidermann's textile firm. This financial bail-out turned out to be a tremendous embezzlement scandal. ELF's executive officers misused their company assets for their personal use. This financial scandal had also bared a political-business network of corruption in which political French leaders were using ELF to promote the project of French foreign policy of grande nation in Africa and ELF's benefits to fund political campaigns. This Elf scandal ‘became the biggest political-financial scandal of the French corruption history' .
The first point to deal with would be to know why this ELF scandal is a case of corruption. From Robert Klitgaard, ‘corruption exists when an individual illicitly puts personal interests above those of the people and ideals he or she is pledged to serve'. From this general concept, there is apparently no way to put into question the corrupt aspect of the ELF scandal. But, what are the forms and the particularities of this case of corruption? One time again, one can refer to Robert Klitgaard who says that corruption ‘can occur in the private sector or in the public one, and often occurs in both simultaneously' . It devises quite well the ELF case in which both actors were implied into the affair. From this duality which characterizes ELF scandal, it would be pertinent to focus on the network established by political French and African leaders through ELF's executive officers. How had this network been possible?
[...] In this paper, I will focus on the ELF scandal as a mean to analyze and reflect about the particularities of the French corruption. In a first point, I will sum up the ELF scandal which is known for its density and complexity. Then, I will focus on the origins of this corruption, about the dysfunctional of the French democracy. Finally, I will observe the goals which motivate the corruption in the ELF case. Historic and sum up of the twists and turns of the ELF scandal: a complex and dense corruption case From Bidermann's affair to the African affair In July 1994, the French Commission of the financial transactions[7] made a report in 1992 about the dubious financial help of ELF-Aquitaine, directed by Le Floch-Prigent, to Bidermann's textile company. [...]
[...] Moreover, business friends of ELF's network were also involved as in Switzerland, Spain, Venezuela and many other countries[37]. The fact that the state was indulgent about ELF transactions gives incentives these people to practice corruption for their personal use. In contrast with ‘Corruption apologists', which assert that corruption in the economic sector can have virtues of efficiency, because economic agents can get their business goals in a shorter time, avoiding the long legal process, ELF case shows that the State indulgence triggers an increase of embezzlement for personal use. [...]
[...] Figaro.fr, 'L'affaire ELF est refermée' Preface (Xi-Xii), Robert Klitgaard, Controlling Corruption Weberian analysis of the bureaucracy p 3 Daniel Kaufmann, ‘Corruption: The facts' COB : Commission des Opérations de Bourse Juliette Pavis et Catherine Gouëset, ‘chronologie de l'affaire ELF' Former French first minister Nigeria is the first producer country of oil in Africa Hervé Gattegno, ‘l'enquête sur les intermediaries d'ELF au Nigeria dévoile une cascade de commissions occultes' Hervé Gattegno, ‘l'enquête sur les intermediaries d'ELF au Nigeria dévoile une cascade de commissions occultes' Anne Cécile Robert, : une affaire d'Etat' p 278, John R. [...]
[...] No one can omit the fact that ELF affair was done with the French state complicity and sometimes for the State interest. But what are mechanisms or dysfunctional which enable this political corruption in a democratic state to occur? The origins of the ELF scandal: the failure of a democratic state and of an administrative control The Network of the Elites as an incentive to corruption: between pantouflage and consanguinity This theory of network has been a case study in corruption researches. The network theory can refer to democratic countries in which transparency and administrative regulation are the norms. [...]
[...] In the case of the ELF scandal it is obvious that the network of the French elite had encouraged corruption.[14] There is a particular French connivance between political leaders and company managers. Indeed, they had the same social background and they attended the same Grandes Ecoles, which enables them to create ties between each other[15]. The French Elite makes up a homogeneous circle in which people know each other and help each other[16]. Economic and political leaders cooperate together in order to reach their goals more easily. [...]
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