The “Duménil Affair”

It might sound like something from a John Le Carré novel, but it gives a clear, if rare, insight into the human frailty which is the raw material of espionage.

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A professional-looking couple are among passengers at a Paris airport waiting to board a flight to Zurich.The man is approached by an officer from the PAF, the French Border Force, who invites the man to accompany him for a chat as he appears to have been a victim of identity theft.

Away from the airport crowds, the man is confronted by two Men in Black. One secures the door while the other produces recently-taken photographs of the man’s wife and daughter. The Men in Black then tell him bluntly that he must pay them 15 million Euros before a certain date. Failure to pay will result in severe consequences such that he will be lucky to spend the rest of his life in a wheelchair.

The man is Alain Duménil, a wealthy and controversial French-Swiss businessman. The two Men in Black are agents of the DGSE, the French counterpart to the US CIA and the British MI6. The DGSE works alongside its domestic partner, the DGSI (General Directorate for Internal Security) to provide intelligence and to safeguard national security, notably by carrying out paramilitary and counterintelligence operations abroad.

This shocking incident might look like a historical tale from the excesses of the post-WW2 Cold War era, but it actually took place on Saturday 12 March 2016 in Terminal 2F at the Paris Charles de Gaulle airport.

It seems that, several years ago, the DGSE had invested a substantial sum of money (UPDATE: 25 million Euros) in a company which was then bought by M Dumenil in whose ownership the company went bankrupt. It seems that the DGSE want ‘some’ of their money back, with interest (13+2 million Euros). It is not yet clear the purpose of the investment or why the DGSE is keen to recoup their losses, or indeed when this kind of investment speculation became DGSE.

Can it be true?

The Inspection Generale de la Police National (IGPN – aka La Police des Police) has confirmed most of the facts of the story. However, the current Head of the DGSE, Bernard Bajolet, wrote to the Director of the IGPN to say that he will not discuss the details of the story for reasons of National Security.

The Truth emerges…

In 1995, The General Directorate for External Security (DGSE) has invested large amount of money in ‘front societies’ located in foreign countries.

One of these societies — France Luxury Group  — located in Luxembourg, owns luxury brands such “Emmanuelle Khanh”, “Jean-Louis Scherrer” and “Smalto”.

In 2003, the society goes bankrupt and the DGSE accused Duménil of financial crimes. The DGSE is said to have invested 25 million euros in this holding.

These investments constitute a “war chest” that would be used to ensure the continuity of the State in case of an invasion.

Surprisingly, the origin of the treasure is described as “spoils of war”. Which one?