A court convicted 38 people Wednesday in a vast party financing scandal centered on Paris City Hall from 1987 to 1993, when Jacques Chirac was mayor.Although as France's president Chirac enjoys immunity and could not be questioned in the case, the verdicts come as the latest blow to the 73-year-old leader's reputation in what is likely to be his last year in office -- and possibly, in politics.
The court handed down suspended prison sentences of two months to two years and fines of up to $127,940. Among those convicted were the four former top officials of the Paris public housing agency.
The six-month trial followed a decade-long, politically charged inquiry into alleged kickbacks from building contractors. Although politicians were investigated, none was among the 49 people on trial, who were business leaders and housing officials.
Prosecutors said illicit funds were funneled to Chirac's conservative party, Rally for the Republic, which has since gotten a new name and leadership. Investigators said about 20 public works companies paid more than $7.29 million from 1991 to 1994 to Jean-Claude Mery, a party official who claimed to have collected bribes.