France's Chirac targeted in corruption probe

By Thierry Leveque

PARIS (Reuters) - Former President Jacques Chirac has been placed under formal investigation by a French judge for suspected embezzlement of public funds when he was mayor of Paris, Chirac's 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 in a series of graft cases that have cast a shadow over his record as the capital's 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.

Wednesday's case revolves around jobs allegedly handed out to centre-right sympathizers by Paris city hall. Chirac was questioned over a separate case of alleged fake jobs in July.

Veil said Chirac was questioned by judge Xaviere Simeoni on Wednesday and declared 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.

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

"LEGITIMATE AND NECESSARY"

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.

In a newspaper column published on Wednesday, the former president wrote he had made "legitimate and necessary" staff hires to advise him and to help him revitalize Paris. Only a small number of around 40,000 city employees were in question.

"Who were these few officials? People to help clarify issues of substance for me -- educational, social, economic, sporting problems," he wrote.

"It could also be men and women of quality, with all the necessary qualifications, but who were going through a difficult period professionally and to whom I wanted to give a fresh chance.

"And finally there were a very small number of aides who helped in the coordination and exercise of my functions."

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