Carla Bruni charity dragged into storm over L'Oreal cash as Nicolas Sarkozy defends himself on French TV

Carla Bruni charity dragged into storm over L'Oreal cash as Nicolas Sarkozy defends himself on French TV. Carla Bruni has been sensationally drawn into the financial scandal enveloping her husband's government when it emerged that one of her charities is receiving huge cash donations from France's richest woman.

Liliane Bettencourt, the 87-year-old L'Oreal heiress, is under investigation for allegedly handing over 'envelopes stuffed with cash' to Nicolas Sarkozy just before he became president in 2007.

In an impassioned broadcast last night, President Nicolas Sarkozy defended himself against allegations of illegal campaign financing and claimed they were being used to divert attention from other issues.

Husband and strike: French president Nicolas Sarkozy and Carla Bruni

Mr Sarkozy and his Labour minister Eric Woerth, who is also treasurer of the ruling UMP party, are said to have turned a blind eye to tax evasion by Mrs Bettencourt in return for electoral funding.

Speaking on France 2 last night, he branded the accusations against him as 'slanderous' and said: 'The most recent political scandal took place in Britain, not France.'

He denied France was a corrupt country, but admitted it had some 'bad habits'.

Raid: Liliane Bettencourt is under investigation

And he said the claims about receiving money from Mrs Bettencourt were being used to divert attention just as his conservative government prepares to launch a difficult reform to raise France's retirement age from 60 to 62.

As claims that Mr Sarkozy was in the pocket of the super rich intensified, it emerged that the Carla Bruni-Sarkozy Foundation, which raises money for disadvantaged youngsters, receives funding from Lancome, the luxury beauty brand owned by L'Oreal since 1964.

In a publicity speech welcoming the collaboration between her foundation and the brand in September, Miss Bruni said: 'Lancome symbolises beauty to the French. It is therefore the ideal partner.'

Although Lancome will not reveal how much money has been paid to Miss Bruni's foundation, the initial donation was thought to be worth around £500,000.

While there is no suggestion of anything illegal about Miss Bruni's deal with Lancome, there would be a clear conflict of interest if Mrs Bettencourt, L'Oreal's major shareholder, was seen to have benefited financially from her links with Mr Sarkozy's government.

A criminal investigation has been opened into the Bettencourt Affair by prosecutors in the Paris suburb of Nanterre, and there have been several high-profile police raids.

'The links between rich benefactors and the government are what is under investigation, and especially those who have received cash from Mrs Bettencourt,' said a judicial source.

'All of these links will be investigated in detail, including the one between Mrs Bettencourt and the Carla Bruni-Sarkozy Foundation.'

A serving French president cannot be officially prosecuted, but Mr Sarkozy is fighting for his political life. He is expected to seek re-election in 2012.

Francois Bayrou, of the Opposition MoDem party, said: 'This is a political and moral crisis. The French are not going to accept staying in this sordid quagmire for much longer.' ( dailymail.co.uk )