French judges target Villepin office in smear probe

PARIS, July 6 (Reuters) French judges searched the offices of former Prime Minister Dominique de Villepin today, a day after targeting his home, as they investigated allegations he unlawfully tried to wreck Nicolas Sarkozy's presidential hopes.

Judicial sources say investigators believe Villepin might have tried to use falsified documents to smear his political rival in 2004 in a murky plot that almost pulled his government apart when details emerged last year.

Villepin has denied any wrongdoing and returned home from a holiday late yesterday to be on hand when judges searched his office in central Paris today morning.

The scandal kicked off in 2004 when anonymous letters were sent to an examining magistrate alleging Sarkozy and a group of other senior politicians held accounts in Clearstream, a financial clearing house in Luxembourg.

The money was said to be linked to the bribe-ridden sale of frigates to Taiwan in 1991, but the accounts proved bogus.

Deleted files retrieved this week from the computer of an intelligence officer suggested Villepin himself encouraged the anonymous tip-off to the magistrate, judicial sources said.

The sources have said Villepin could be placed under formal investigation for complicity in false accusations. Such a move would not imply guilt, but would be unprecedented against a former prime minister in modern French history.

Judges Jean-Marie d'Huy and Henri Pons spent six hours at Villepin's Paris apartment yesterday afternoon and confiscated several documents. Today, they visited his office housed in an annex of the French Foreign Ministry.

Sarkozy lodged an official complaint with magistrates last year, saying he had been the victim of a smear campaign, but did not give any names in his deposition.

Villepin has repeatedly denied allegations that he tried to stoke the scandal and was questioned by magistrates for 17 hours last December.

He has said he ordered a routine check of the Clearstream accounts when the bank details first came to light and immediately dropped the probe when it became clear all the documents had been falsified.

Sarkozy says he was not informed about the allegations until months later and knew nothing about Villepin's investigation, despite the fact they were serving in the same government.

Sarkozy swept to power in a presidential election in May and immediately named a new prime minister.

REUTERS GT BST2055