Monaco ruler caught up in messy lawsuit
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Monaco ruler caught up in messy lawsuit

Former manager of palace assets sues Prince Albert II in connection with ‘Rock Files’ scandal

Prince Albert II of Monaco attends the commemoration ceremony for the centenary of the birth of Prince Rainier III, in front of the Palace of Monaco on May 31 this year. (Photo: AFP)
Prince Albert II of Monaco attends the commemoration ceremony for the centenary of the birth of Prince Rainier III, in front of the Palace of Monaco on May 31 this year. (Photo: AFP)

MONACO: A former confidant of Monaco’s ruler Prince Albert II is suing the monarch in an unprecedented and potentially damaging court case triggered by the release of leaks that have rocked the usually placid Mediterranean playground for the rich and famous.

Claude Palmero was in charge of managing the palace’s assets for over two decades, first for Albert’s father Rainier III, the husband of the US actress Grace Kelly, and then their son Prince Albert when he became ruler in 2005.

But now Palmero is asking for around one million euros ($1.1 million) in damages from the palace, according to a complaint seen by AFP, over losing his job after becoming embroiled along with other former senior palace officials in unverified allegations posted in the Dossiers du Rocher (“Rock Files”, referring to Monaco by its nickname) website from 2021.

The website hosted videos, confidential email exchanges and hostile articles dealing with property development in the principality.

The controversy has ruffled the usually calm waters around Monaco, a tiny principality surrounded by French territory which attracts ultra-rich residents — like tennis star Novak Djokovic and formula 1 champion Lewis Hamilton — due to its favourable tax regime.

With a population of barely 40,000, Monaco imposes neither income nor wealth taxes.

Among the materials published by Dossiers du Rocher were email exchanges between four people close to Prince Albert, including Palmero, accusing them of collusion in an alleged financial scam.

As well as Palmero, Albert’s chief of staff Laurent Anselmi also lost his job in June.

‘From another age’

In charge of the crown assets, Palmero was known as a Monegasque eminence grise, who was tasked with strategic issues including taking a stake in the airport in nearby Nice and buying property, as well as being a keeper of palace secrets.

He lodged an appeal against his dismissal in the case before Monaco’s constitutional court, known as the Supreme Tribunal, on July 13.

“No reason has ever been given to justify these decisions that come from another age and manifestly violate the principle of legality,” said the complaint filed by lawyer Pierre-Olivier Sur and seen by AFP.

“Prince Albert II during his reign has congratulated himself in front of his subjects and the whole world that Monaco is a state of law.

“Alas, there are circumstances where this principle is sadly forgotten by him and favour the violence of arbitrariness,” it added.

Palmero is seeking the condemnation of the prince to repair “the immense moral damage, injury and disruption to living conditions”, claiming the one million euros and his reinstatement.

Albert’s lawyer Jean-Michel Darrois said in response: “This is a discretionary decision by the royal house as is the case with several other monarchies.”

But the controversy is deeply unwelcome for Albert, who has already been under intense scrutiny over his marriage to Princess Charlene, the former South African Olympic swimmer in 2011, in French and international media in recent months.

Charlene only returned to Monaco in March 2022 after a months-long absence for medical treatment.

Raids and infighting

The case, which is set to be heard in the coming weeks, comes as judicial authorities launched a series of searches in mid-July at the four former confidants of the prince accused in the Dossiers du Rocher.

All those involved deny the allegations put forward by Dossiers du Rocher, which published their private correspondence and whose origins remain a mystery despite investigations by the French and Monaco authorities.

Patrice Pastor, a Monegasque construction entrepreneur, has filed a complaint over alleged influence peddling against them. But while they suspect him of being behind the website, the businessman strongly denies this.

The purported motive of Pastor, whose group is worth up to 30 billion euros, is alleged by his enemies to have wanted to maintain control over lucrative real estate transactions in the principality, which Palmero and his allies sought to limit.

According to official figures, 88 new apartments were sold in 2022 in Monaco, for a stratospheric total amount of 1.2 billion euros. The Pastor group is particularly involved in the Mareterra project, six hectares of luxurious buildings looking out to the Mediterranean.

First reported by Le Monde in France, the searches targeted, in France and Monaco, the homes and offices of Claude Palmero, the law firm of Thierry Lacoste, childhood friend of the prince, Laurent Anselmi, and Didier Linotte, president of the Supreme Tribunal, who is about to leave office.

Monaco’s prosecutor general refused any comment.

The four men do not deny being in touch with each other but insist it was to deal with regular business of Monaco.

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