You are probably referring to this: http://fr.wikipedia.org/wiki/Fonds_sp%C3%A9ciaux

quick translation: before 2001 the President and its ministers used to receive "secret funding" that they could use for whatever they wanted. The money came from Banque de France (public money, not money from a private bank).

This has been mostly suppressed in 2001 (the amounts are now public information), except for secret services funding (for obvious reasons).

So your example is a bit inaccurate and a bit outdated. That said, we certainly have our share of nepotism and collusion.