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Chirac Under Investigation


Filed at 7:47 a.m. ET

PARIS (Reuters) - A French judge has placed former President Jacques Chirac under formal investigation for suspected embezzlement of public funds during his time as mayor of Paris, Chiracs lawyer Jean Veil said on Wednesday.

Chirac, who lost his immunity from prosecution after stepping down as president in May, has consistently denied any wrongdoing while he was mayor between 1977-1995.

"Formal investigation" means a suspect could eventually be ordered to stand trial. The judge investigating the case could also decide there is not enough evidence to prosecute.

Chirac, 74, is the first former president of modern day France to be placed under investigation by magistrates.

The case is one of a number hanging over Chirac and revolves around jobs allegedly handed out to centre-right sympathizers by Paris city hall. The former president was questioned over a separate case of alleged fake jobs in July.

Veil said Chirac was questioned by judge Xaviere Simeoni on Wednesday and had told him he was innocent of any wrongdoing.

"On the issue of principle, he considers that the jobs were perfectly legitimate and that they were good policy for the city hall," Veil told reporters after the questioning.

Chiracs departure from office following the election of Nicolas Sarkozy in May prompted widespread speculation that he would face questioning over a series of cases relating to party funding and other issues.

During an 18-year reign as mayor of the French capital, Chirac built a formidable party machine that gave him firm control over most aspects of city politics.

His meeting with the judge on Wednesday focused on the organization and functioning of the mayors office. A further meeting, to deal more specifically with the jobs under question, will be organized "in a few months," Veil said.

Chiracs four chiefs of staff from the period 1983-1995 have already been placed under official investigation in the case.

In a newspaper column published on Wednesday, the former president wrote that he had hired "men and women of quality" to advise him and to help him revitalize Paris.

"I wanted or authorized these recruitments because they were both legitimate and necessary," he wrote in Le Monde daily.

(Writing by James Mackenzie; editing by Crispian Balmer)

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