Sex, spies, smears and vendettas: a royal family tears itself apart

The Dutch royal family is used to deference and polite respect. But last night, it was under fire in an unprecedented dispute that has been nicknamed "Margarita-gate" and compared to the crisis that tore apart the House of Windsor.

For weeks, Princess Margarita, the alienated niece of Queen Beatrix, has been tormenting the "bicycling monarchy" of the Netherlands by giving the media a series of juicy insights into life behind the palace facade.

But yesterday, the disgruntled royal niece took decisive action by filing a criminal complaint against the nation's secret service and its former prime minister Wim Kok.

Princess Margarita accused Mr Kok of perjury in a letter he wrote denying that her husband, Edwin de Roy van Zuydewijn, had been investigated by the intelligence agencies.

The princess claims that the investigation was at the behest of the Queen who opposed the marriage to Mr Van Zuydewijn.

The respected former trade unionist Mr Kok said he was "amazed" at the princess's allegations which he described as groundless. But the shock waves were spreading through the small Dutch elite.

Princess Margarita's claim is the latest and most serious in a series of lurid allegations which have dented the homely image of Dutch royalty, even leading to speculation that Queen Beatrix might abdicate sooner rather than later.

All this is so shocking to the Netherlands because the Dutch have always viewed their constitutional monarchy with respect, and scandalous stories about the low-profile Dutch royal family had been rare in a largely deferential press.

Until Princess Margarita. She is the daughter of Beatrix's sister, Princess Irene, who was forced to renounce the throne after marrying a Spanish aristocrat. But her relationships with her family were poisoned by a row over her choice of partner. Infuriated by repeated snubs, the princess has gone on the offensive with devastating effect.

She and her husband, who now live in France, allege that a sustained slander campaign was orchestrated by the monarch and the court and has ruined their livelihoods.

Mr Van Zuydenwijn claims to have lost millions of pounds in contracts. The couple say companies who were on the brink of signing contracts with Fincentives, his business specialising in personnel options, mysteriously pulled out at the last minute after pressure from the Royal Family.

Palace insiders say Mr Van Zuydewijn is a "dodgy" character who said he was a baron. His wing of the family has never been titled, according to a genealogical expert quoted in a Dutch newspaper.

Margarita went against the will of her parents when she married Mr Van Zuydewijn in France in September 2001.

Neither the Queen nor Margarita's father attended the wedding and there were few other family members present. The princess has complained that her husband is ignored by the royal family and its aides. "They bump into him as though he is invisible and some ladies-in-waiting refuse to shake his hand," she told one publication.

Just months after her marriage the princess appealed to Mr Kok to ask the Queen to intervene and force the royal family to accept her choice of husband, but he said he could not become involved. Under the Dutch constitution, the prime minister bears responsibility for the royal family and speaks for them.

Now Margarita has taken her revenge for her years in the cold, by publicly levelling accusations of adultery against some members of the royal family. The accusations include a claim that her father, Carelhugo de Bourbon Parme, allegedly had an illegitimate son by his Dominican housekeeper.

"He has double moral standards. He disagrees with my husband but he himself has a son by his former Dominican housekeeper, my dark-skinned, half-brother Zavier."

The Princess has also accused Prince Bernhard, 91, the father of Beatrix, of having a long-time affair with his secretary, Cocky Gilles, while his wife, Queen Juliana, who abdicated in 1980 was on the throne.

Princess Margarita portrays her aunt as a tyrant who had decreed that Mr Van Zuydenwijn was an unsuitable choice for marriage.

Mr Van Zuydewijn has related how he was subjected to "psychological terror" around the royal dinner table during an interrogation on his business background. He says that the Queen ordered him to be removed from the group photo at a royal wedding. He has accused Beatrix of having a lot to drink on her birthday and falling asleep in a chair.

In a high-profile television interview, the princess told Nova TV: "I think it is important that people know who these people are, who, as it is said 'may rule the country'. They abuse their position and that is not right."

Last month, the House of Orange limited itself to a brief statement saying the family did "not recognise itself in the picture painted by the articles. Out of love for Princess Margarita, the family is limiting itself to this reaction".

While such a row might have seemed bad enough the latest claims are worse because they transform the saga from one about unhappy families into a political crisis.

Last week the Dutch premier, Jan Peter Balkenende, admitted that Mr Van Zuydewijn had been screened during Mr Kok's government, as part of routine security measures, but denied wrongdoing. He said the government was concerned about the "methods" chosen by the princess and her husband and said the wire-tapping accusations were "too crazy for words". He added: "I find this affair painful for the Queen and her family, and I sincerely hope it will stop."

Yesterday's complaint does not mention Queen Beatrix, who enjoys immunity from prosecution as the head of state.

A security check might have seemed logical but the problem was that the minister responsible for the security services at the time does not appear to have been told. While Queen Beatrix may have had the constitutional right to initiate such an investigation, her actions do not, with hindsight, hold up well to public scrutiny.

Princess Margarita's lawyers are demanding an apology and a financial settlement from the Queen. The complaint also alleges that the secret service broke its rules by leaking Mr Van Zuydewijn's tax and social security records.

Mr Balkenende has written a letter to the Dutch parliament assuring it that procedures have now been tightened.

In Mr Balkenende's letter to parliament he explains that the security investigation in 2000 into Mr Van Zuydewijn's past was legitimate because he was marrying into the royal family. But the BVD security services should have informed the ministers.

Mr Balkenende says he has made agreements with the national security service that from now on, not only the minister, but also the Prime Minister himself would be informed about any important investigation. The BVD started the inquest against Margarita's then fiancé, because it had "serious questions about his integrity", according to the official account.

When certain issues still went unanswered, Felix Rhodius, head of the Queen's cabinet, suggested Margarita's father and brother should be informed. The BVD also went on to inform Prince Bernard, Margarita's grandfather, about the case. Mr Balkenende says there were enough grounds for an investigation and it was "reasonable" that some members of the royal family were involved.

He also said he found no evidence that the couple had been bugged as the couple have claimed.

Whether Margarita will manage to wreak the havoc that Diana, Princess of Wales, inflicted on the British Royal Family remains to be seen. Some royal commentators in the Netherlands argue that Margarita's attempts to "do a Diana" have backfired. Queen Beatrix enjoys enormous popular affection among the Dutch. She is still mourning the loss of Prince Claus, her German-born husband whose death last October prompted much popular outpouring of grief.

But the political classes of The Hague are beginning to get nervous. It would not be that surprising, officials are starting to suggest, if the Queen stepped down, say, around her 70th birthday. And, as we know in Britain, there are few people as dangerous as a princess scorned.