‘Retrocommissions’ for Pakistan subs: Lawyer

A judge in France investigating a 2002 bombing in Karachi that killed 11 DCN employees has confirmed the existence of “illegal rétrocommissions” linked to the sale of submarines to Pakistan.

This was revealed by a lawyer for the victims’ families, according to a French general information magazine.

‘Retrocommissions’ are funds skimmed off ‘commissions’/kickbacks paid which are then illegally remitted to French officials i.e. individuals or entities in both countries get a share of the ‘commissions’.

The Paris-based Le Nouvel Observateur (or Le Nouvel Obs), a prominent weekly in terms of audience and circulation, along with AFP reporting, observed on 19 June:

Judge Marc Trévidic in charge of the investigation into the bombing of Karachi in 2002, confirmed the existence of “illegal rétrocommissions” outside the contract of sale of submarines to Pakistan, said Friday, June 18 counsel families of victims, Mr. Olivier Morice.

He also suggested that Nicolas Sarkozy knew “perfectly” the reasons which led to the stoppage of payment of commissions paid on this contract, the lawyer said after a meeting with the plaintiffs.

“It is clear that at the highest level of the French government is perfectly aware of the reasons that led to discontinuation of payment of commissions,” said Mr. Morice.

Eleven dead

“He confirmed unequivocally the existence of illicit rétrocommissions explaining that showed that in particular by the DCN’s own internal documents, the Directorate of Naval Construction (DCN) signed the contract with Pakistan, the lawyer said .

Commissions paid on this contract could have given rise to rétrocommissions to finance the presidential campaign of Edouard Balladur in 1995, according to testimony and reports on file.

Eleven employees of the Directorate of Naval Construction (DCN), who worked in the construction of these submarines have been killed in the attack against their buses May 8, 2002 in Karachi.

According to Mr. Morice, who has filed a new complaint Tuesday on corruption charges, the judge also confirmed that the “only credible track” was considered “the financial trail,” namely that of Pakistani retaliation following the stop payment commissions on the sales contract Agosta submarines to Pakistan….