A businessman wanted in France over claims that the Qaddafi family secretly bankrolled Nicolas Sarkozy bribed one of the ex-president’s senior officials to secure a commission on a Libyan aircraft deal, a London court heard.
Alexandre Djouhri, 59, sold a villa in the south of France for a vastly inflated price and funnelled some of the money into an account held by Claude Gueant, Mr Sarkozy’s former chief of staff, and his wife, French authorities claim.
French investigators believe the 500,000-euro payment came from a state-run Libyan fund which bought the villa in 2008 with an unsustainable plan to turn it into a medical centre for retired African leaders, said Ben Watson, a lawyer for the government.
France launched an inquiry four years later into reports that the Qaddafi family paid $50 million to help Mr Sarkozy fight his successful 2007 presidential election campaign in contravention of French election laws.
Mr Djouhri – who was described in court as a go-between for the French leadership and the Qaddafi regime – is wanted in France for fraud, money laundering and bribery in connection with the villa sale.
The French-Algerian businessman was arrested at London’s Heathrow Airport in January last year on a French-issued arrest warrant. The Swiss resident had been living in Geneva out of reach of French investigators and had declined opportunities to speak with investigators, the court heard.
Details of the payments emerged at the start of a three-day extradition hearing delayed after the prominent political fixer collapsed in a British prison with serious heart problems and required emergency medical treatment.
Mr Djouhri is fighting extradition, claiming that the case against him is politically-motivated because of his association with Mr Sarkozy. The former president was one of the leading advocates of a Nato-led military campaign that resulted in the overthrow and killing of Muammar Qaddafi in 2011.
Mr Sarkozy has said the claims of illegal Libyan funding of his campaign were made in revenge for his backing of the rebels – and led to the failure of his 2012 re-election bid.
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Read more:
Sarkozy probe businessman faces 2019 extradition battle
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Mr Djouhri rose to prominence after acting as an attempted peacemaker between Mr Qaddafi and the rebels attacking the regime’s hold on Tripoli. He claimed that he was being targeted by a judiciary biased against Mr Sarkozy.
“It’s a fake arrest,” Mr Djouhri told The National before the start of Monday’s hearing. “It’s harassment.”
Mr Djouhri allegedly paid the money to Mr Gueant ensure he received a commission on the sale of Airbus aircraft to state-owned Libyan airline Afriqiyah Airways, said Mr Watson. He also wanted to ensure that he avoided tax liabilities from the villa sale, he said.
Mr Watson said there was no direct evidence linking the proceeds from the villa sale to the election funding scandal.
French investigators say that Mr Gueant later falsely claimed that the money came from the sale of two paintings rather than the villa. Days after receiving the payment, the money was used to buy an apartment in the French capital.
Mr Watson told the hearing in London that the villa was valued in 1998 at some 760,000 euros but was sold a decade later to the Libyan African Investment Portfolio (LAP) for more than 10 million euros.
Mr Djouhri’s legal team says he is not well enough to stand trial and is bringing evidence from senior French officials to claim the judiciary has unfairly targeted Mr Sarkozy and his allies.
“Mr Djouhri is seen as a close associate of Mr Sarkozy and go between … with the Qaddafi family,” said Jonathan Caplan QC, for Mr Djouhri.
The hearing continues
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
