By Veronica Rossini

During his two terms as president of France, Chirac enjoyed immunity from investigation and prosecution under article 67 of the French constitution. Mr Chirac’s immunity expired on 16 June, opening the way for magistrates to question him over illegal acts he may have committed before entering office, writes the Financial Times.

The affair concerns Mr Chirac’s term as mayor of Paris from 1977 to 1995, when he also was leader of the Rally for the Republic party. According to the International Herald Tribune, members of his party were allegedly placed on the payroll for municipal services although they were not employed officially by Paris city hall.

Former Prime Minister, and close ally of Mr Chirac, Alain Juppé received a suspended 14-month prison sentence over the job scandals in 2004, reports the Financial Times. The International Herald Tribune specifies that Mr Chirac has repeatedly denied any wrongdoing and denounced the allegations as “lies, calumny and manipulation.”

By Veronica Rossini

The US probe comes after the British government pressured the Serious Fraud Office to drop an investigation into an alleged multi-billion pound slush fund to secure the sale of BAE military equipment to Saudi Arabia in the 1980s, reports Reuters. Outgoing British Prime Minister Tony Blair has been heavily criticised by anti-bribery campaigners and the British media for stopping the investigation on the grounds that it posed potential security risks and was necessary to maintain good relations with Saudi Arabia.

In early June, the BBC and The Guardian reported that BAE had paid hundreds of millions of pounds to a member of the Saudi royal family, Prince Bandar. The US would likely have jurisdiction to investigate the case if any of the payments made to Prince Bandar were routed through US accounts.

BAE has consistently denied making unlawful payments in the so-called al-Yamamah arms deal, claiming that “all such payments made under those agreements were made with the express approval of both the Saudi and UK governments,” reports The Guardian.

To see Transparency International’s latest press release on this issue, go to: www.transparency.org/news_room/latest_news/press_releases/2007/2007_06_13_uk_defence

By Stephanie Don

Following allegations of corruption, the AEC has frozen all of Thaksin and his wife’s accounts, and more than 30 bank accounts belonging to Thaksin’s family and associates. According to the Japan Economic Newswire, the money in these accounts is suspected to be part of the 73.3 billion baht (US $2.37 billion) proceeds resulting from the sale of Shin Corporation, Thaksin’s telecommunication empire. The AEC alleges Thaksin “abused his power to benefit his family’s business” before it was sold, even though he claimed his and his wife’s shares were transferred to family members after Thaksin entered politics.

Corruption charges were filed against Thaksin on the same day that his GBP 81.6 million (US $164.45 million) bid for the beleaguered English football club Manchester City was accepted, reported the Guardian. Although Thailand’s finance minister questions where the origins of these funds, the broker of the deal claims the money is clean. The Express quoted middle-man Keith Harris from BBC Radio 5 as saying: “The money to buy Manchester City is clean. It has been legitimately and transparently transferred to the UK.”

The International Herald Tribune reports that Thaksin is refusing to return to Thailand to face the corruption charges, claiming he fears for his safety. Although police are threatening to issue an arrest warrant, Thaksin says he will not return to Thailand until after elections tentatively planned for December take place.