SAGA

Allegations of Financial Favors for Relatives Rock Monaco’s Royal Family

Documents obtained by Bloomberg Businessweek suggested Prince Albert may be awarding his nephews contracts worth tens of millions, without considering the competition.

Scandals that have rocked the royal family of Monaco in recent months appear to have hit a new peak, with a Bloomberg Businessweek report alleging Thursday that documents show Prince Albert II made special exceptions that netted his nephews millions.

The nephews, Andrea and Pierre Casiraghi, have become some of the wealthiest businessmen in Monaco, a tiny European city-state on the French Riviera, but reportedly largely thanks to their uncle.

Citing investigative documents, Businessweek reported that the two men got nearly anything they asked for from Albert. In 2009, when the nephews were in their early twenties, their company had reportedly won state contracts worth more than $60 million. When they later sought to build a ritzy apartment building in prime real estate adjacent to the famous Casino de Monte‑Carlo, Albert reportedly intervened to quash a lawsuit by another developer.

In another instance, when their company wanted to take over the country’s exclusive helicopter service, Businessweek reported that a government official opened a back channel that helped the business prepare its bid a year in advance. That deal in particular has led an investigative judge in Monaco to quietly lead a sprawling inquiry into the matter, reportedly to examine whether the prince himself or members of his government showed favoritism in selecting the Casiraghis.

These alleged favors for family worried those close to the prince, including his former right-hand man for finances, Claude Palmero, who warned in a journal entry reviewed by Businessweek that the nephews’ construction business was going to “cause problems.”

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They appear to have done just that, with Albert coming under more intense scrutiny in recent months than he’d faced in nearly two decades prior as the ruler of the principality of 36,000. Albert’s financial favors for family aren’t illegal in Monaco, as they’re a constitutional monarchy that makes Albert immune to prosecution, but it’s put the royal family under a magnifying glass it’s not accustomed to.

Albert has engaged in an increasingly public feud with Palermo, which began with the ousting and shaming of his financial adviser. That decision came after French President Emmanuel Macron urged the prince to clean up his network to restore confidence, said two people with knowledge of the conversations to Businessweek.

Now on the outside looking in, Palermo has begun divulging secrets about the royal family in interviews with French newspapers, including an allegation that the prince kept some payments to his ex-partners secret from his wife, Princess Charlene. Among the alleged secret transactions have been quarterly transfers of $86,000 to Jazmin Grace Grimaldi, 31, who is Albert’s illegitimate daughter with an American waitress. He also reportedly purchased the woman a $3 million apartment in New York City.

As he’s released royal secrets, the government in Monaco has criminally charged Palermo on allegations he mismanaged the royal family’s accounts for his own personal interest—allegations he has denied as he contests his firing before the European Court of Human Rights in Strasbourg, France.

One of Palermo’s attorneys, Marie-Alix Canu-Bernard, said the allegation was “defamatory, unfair and untrue,” Businessweek reported.

“After 22 years of absolute loyalty and commitment, I confess my dismay at such remarks, which I find totally incomprehensible,” Palmero was quoted saying in a statement. “Clearly, the palace has lost its compass.”

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