FRANCE: Bettencourt affair heats up with raids, reports

Wealth manager targeted in donations investigation

* Patrice de Maistre’s lawyer says searches not surprising

* French weekly unveils cash withdrawals before election

By Gerard Bon

PARIS, July 9 (Reuters) – French authorities on Friday searched the home and offices of the wealth manager of France’s richest woman, a police source said, the latest twist in a saga which has rocked President Nicolas Sarkozy’s government.

Police are investigating whether L’Oreal (OREP.PA) heiress Liliane Bettencourt and her late husband made illegal campaign donations to conservative politicians.

The lawyer of Patrice de Maistre, Bettencourt’s wealth manager, said such searches were to be expected given the scale of the investigation.

The inquiry was ordered after the former bookkeeper of Liliane Bettencourt alleged she had routinely withdrawn cash destined for illegal donations.

“When you have an investigation of this size, several investigations, this type of search is not surprising,” Pascal Wilhelm told Reuters.

The bookkeeper, Claire Thibout, said during police questioning on Wednesday evening and Thursday that de Maistre asked her to withdraw 50,000 euros in cash as part of an indirect illegal donation for Sarkozy’s 2007 election campaign.

She alleged that this amount was added to cash from Switzerland and given to Labour Minister Eric Woerth, treasurer of the ruling centre-right UMP party.

De Maistre has denied the allegations.

French weekly magazine Marianne on Friday said more than 390,000 euros in cash had been withdrawn from Bettencourt’s account in the four months before the 2007 election, citing the former bookkeeper’s ledgers.

Thibout on Thursday denied naming Sarkozy as a direct recipient, saying a website which published an interview with her misquoted her.

Government officials quickly said on Thursday her retraction exonerated the head of state.

The scandal, which started as a family feud, has led for calls for Sarkozy to address the nation and reshuffle the government, along with demands for Woerth to step down. (Writing by Victoria Bryan; Editing by Charles Dick)

, Jul 9, 2010