Explained: Could an embezzlement probe cost French centrist Philippe the election?

A formal judicial investigation has been opened into the awarding of a 2020 contract in Le Havre for managing a digital hub. The investigation targets Edouard Philippe, the mayor, and two other local officials, and covers suspicions including embezzlement of public funds, favouritism, unlawful taking of interest, and extortion. The contract was awarded in July 2020 to LH French Tech after it was the sole bidder responding to a call for tenders. The agreement provided more than 2 million euros over several years to run a space intended to encourage digital innovation. A whistleblower alleges a conflict of interest because the mayor and deputy could control substantial sums. Philippe denies wrongdoing and says he will answer judicial questions.

"France's national financial crimes unit the Parquet national financier confirmed that a formal judicial investigation will be opened against the mayor of Le Havre, Edouard Philippe, plus two other local officials. The investigation - into suspicions of embezzlement of public funds, favouritism, unlawful taking of interest and extortion - was ordered earlier this month, the financial prosecutor's office told AFP on Tuesday. The announcement marks a step up in the enquiry, which has been running since 2023, making it potentially more serious - although no charges have been laid."

"It's about the awarding in 2020 of a contract in Le Havre for the management of a digital hub. An association called LH French Tech was awarded the contract to run the digital hub in July 2020 after being the sole contender to respond to a call for bids. Under a deal, an association - created that same month, and presided by the deputy mayor - was to receive more than 2 million for several years to run the space supposed to encourage digital innovation."

"A former employee, who has since been granted official whistleblower status, has gone public with allegations that there was a conflict of interest as the deal allowed the mayor and his deputy "control over considerable sums" of money. Philippe denies any wrongdoing, and his team told AFP that he took note of the probe and would "answer the questions put to him by the judiciary, as he has always done, in a very serene manner"."

Read at www.thelocal.fr