Total intoxication then meets the person at the echoes

On the eve of a supervisory board ahead of the final duel between its President, Mario Colaiacovo, and the President of the Executive Board, Jean-Paul Béchat, "case" Safran now doubles as a perfume of financial scandal. In a statement released late Friday night, the Executive Board of the group warned that the accounts of the defence and security industry could be restated up to height of EUR 100 million over several years. What challenge the hypothesis, highly mediated in recent days, an eviction of a Jean-Paul now with Béchat to an image of "Mr clean". Gross manipulation of a man who shot his last card, instead responded opponents, while Francis Mer is slated to take the head of the Council.

In its Friday release, Safran binds its suspicion of accounting irregularities at the revocation, on 20 November, Jacques Paccard, his term as President and CEO of Sagem Défense Sécurité (Sagem DS), the leading firm of domestic defence and security of the group. Before his departure, he sacked three people, including the Financial Director of Sagem DS.

Problem: computer files "required by the latter" were then deleted. After reconstruction, the first analyses "carried out in liaison with the Board of Auditors and with the assistance of an audit firm" show that "unexplained entries have been passed by the former Financial Director", continues the release. "Their correction is likely to affect the accounts of Sagem Défense Sécurité, both from previous years for the fiscal year 2006. The estimate of the impact of these corrections is currently underway and may impact, on the accounts of the defence of the Safran Group Security Branch, likely to reach 100 million euros.

Internally, it refers to a system of "financial Cavalry", and a complaint was filed against Jacques Paccard for abuse of social goods. Immediate reaction of the person concerned: "all this is based on nothing, I sensed a manipulation, a movement of panic before the Council," said Jacques Paccard in "echoes". And remember that a "very complete" audit accounts of Sagem DS conducted between mid-June and late July found nothing. "By dismissing my Chief Financial Officer, I did that translate what you criticised me, a lack of reliability of forecasts of results", he assures.

Ring of the part of Daniel Dupuy, said spokesperson of a group of employees shareholders claiming 21 of the voting rights and claiming the simultaneous departure of the two Presidents. In a release, this group denounced the "acts" of Jean-Paul Béchat and said find "unacceptable and particularly irresponsible that a social agent, about to be ousted, violates in a serious manner the Safran Group, its employees and its shareholders".

Joint resignation

The case gives a totally unexpected twist to the trench warfare that has plagued at the head of Safran. Friday afternoon, the "rumour" was that, dropped by the Government, Jean-Paul Béchat is starting "negotiate" its severance benefits. "Total intoxication", then meets the person at the "echoes". Saturday, said close source, Bercy sought a joint resignation of two "enemies". If Mario Colaiacovo is ready, Jean-Paul Béchat have refused or required to do not leave before the summer 2008, is a few months before the official end of his mandate. As future President of the Executive Board, Patrick Buffet (Suez) might have to wait a little...

It is in this context that the Supervisory Board will be held tomorrow. Officially, the eighteen members must discuss the 2007 budget. By first letter of November 21, followed by a second on 29, the Executive Board has kept them abreast of suspicion on the accounts of Sagem DS. First shareholder with 30 of the capital, the State plays a key role in the deliberations, but with five administrators only, it cannot impose its choice. "Barring an agreement between Jean-Paul Béchat and Mario Colaiacovo, which is unlikely, all scenarios are possible," felt yesterday, close source.