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French police question L'Oreal heiress over scandal

Police are questioning France's richest woman, L'Oreal heiress Liliane Bettencourt, over claims of illegal political donations and tax evasion.

Investigators visited the 87-year-old at her Paris home to ask about Swiss bank accounts and a Seychelles island allegedly used as a tax haven.

Both issues were mentioned in secret recordings made by a former butler.

Last week, prosecutors asked to question Labour Minister Eric Woerth over linked claims.

Mrs Bettencourt's lawyer said she was being questioned as a witness.

The recorded conversations between Mrs Bettencourt and her financial adviser, which were leaked to the French press, allegedly show that she had sought to use the Swiss accounts to escape French taxes.

It is unclear whether Mrs Bettencourt owns the Seychelles island which the recordings suggest she used as a tax haven.

The recordings are also alleged to suggest Mrs Bettencourt was a generous donor to French President Nicolas Sarkozy's 2007 presidential election campaign and to a political association run by his top fundraiser and now Labour minister, Eric Woerth, and that those donations exceeded the legal limit.

Both Mr Woerth and Mr Sarkozy deny any wrongdoing in the case.

A government report two weeks ago said Mr Woerth did not use his former position as budget minister to spare Mrs Bettencourt from tax inspections.

Mrs Bettencourt has admitted tax evasion and has promised to put her affairs in order.

(Published by BBC – July 26, 2010)

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