French presidential hopeful Édouard Philippe quizzed in embezzlement case

French investigators on Thursday questioned presidential candidate Édouard Philippe, a former prime minister, in a case of alleged embezzlement, sources close to the case told AFP.

Two investigating magistrates handling allegations of misuse of public funds, favouritism and harassment designated Philippe an "assisted witness" in the affair – a less serious status than being placed under formal investigation.

The case is linked to Philippe's position as mayor of the northern port city of Le Havre.

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Asked about the status of assisted witness, his lawyer, Emmanuel Marsigny, told AFP: "Édouard Philippe welcomes this favourable decision, which confirms that he has done nothing wrong in this matter."

Jerome Karsenti, lawyer for the former civil servant who filed the complaint that led to the investigation, told AFP Thursday they welcomed the fact that the investigation was advancing.

On the magistrates' decision not to place Philippe under formal investigation, Karsenti said they would review their exchanges with him "as soon as possible in order to understand the judges' reasoning in light of facts that we regard as serious".

Philippe, who was prime minister from 2017 to 2020, has rejected all the accusations against him.

Alleged conflict of interest

The case arose out of a complaint lodged by a civil servant, and France's ombudswoman last year gave her the whistleblower status.

The former civil servant says her contract for 2020 to 2023 was not renewed and she was bullied after she made the allegations.

An association called LH French Tech was awarded the contract to run the digital hub in July 2020 after being the sole contender in a call for bids.

Under a deal, the association – created that same month, and presided by the deputy mayor – was to receive more than €2 million ($2.3 million) for several years to run the space supposed to encourage digital innovation.

The ex-civil servant alleged there was a conflict of interest as the deal allowed the mayor and his deputy "control over considerable sums" of money.

The national financial prosecutor's office told AFP in May they had opened the investigation.

The complaint, seen by AFP, stated that the investigating magistrate would have to assess whether a pact had been concluded between the mayor and his deputy involving "political, financial and relational support in return for managing" the digital hub.

Philippe is a candidate in next year's presidential election for the centre-right Horizons party. He currently trails far-right and far-left rivals in opinion polls.

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