France's Sarkozy goes on trial over alleged Libyan campaign financing

Former French president Nicolas Sarkozy went on trial on Monday, on charges of having received millions of euros in illegal financing from Libya's late strongman Muammar Gaddafi for his successful 2007 presidential bid.

Sarkozy, who was relaxed and chatting with lawyers and other defendants in the courtroom before the hearing started, has always denied the accusations.

The conservative former leader faces charges of "concealment of embezzlement of public funds, passive corruption, illegal campaign financing and criminal conspiracy with a view to committing a crime," the financial prosecutor's office said.

The trial, which begins at 1:30 p.m. (1230 GMT), will run over three months and risks further undermining public confidence in the French political class.

Investigators allege he made a corrupt pact with the Libyan government. At issue is a murky affair alleged to involve Libyan spies, a convicted terrorist, arms dealers and allegations Gaddafi provided Sarkozy's campaign with millions of euros shipped to Paris in suitcases.

Sarkozy's lawyer said the case against the former president was a fabrication and that there had been no Libyan financing of the campaign.

"After 10 years of investigation, with an unprecedented deployment of resources, wiretaps, judges traveling abroad, all over the world, there is - obviously - no trace of financing, no transfer, no payment, not even an amount for the alleged financing," lawyer Christophe Ingrain said.

If found guilty, Sarkozy could face up to 10 years in prison and 375,000 euros ($386,000) in fines.

Sarkozy has in recent years faced a raft of legal battles.

In December, France's highest court upheld his conviction for corruption and influence peddling to obtain favours from a judge. Sarkozy has been ordered to wear an electronic bracelet for a year instead of going to jail, a first for a French former head of state.

In another case, Sarkozy was found guilty of concealing illegal campaign spending, and a challenge is pending.

SPRAWLING INVESTIGATION

Financial prosecutors say that in 2005, Sarkozy, then France's interior minister, brokered a deal with Gaddafi, to obtain campaign financing in exchange for supporting the government on the international scene where it was isolated.

Gaddafi was deposed then killed in 2011.

In 2012, French investigative website Mediapart published what it said was a note from Libyan intelligence services dated Dec. 2006 and mentioning Gaddafi's deal to help finance Sarkozy's presidential bid with millions of euros.

Sarkozy said the document was fake.

Investigative judges launched a probe in 2013.

The convoluted case, linked to nine other legal proceedings, and for which investigators sent cooperation requests to more than 21 foreign countries to track the alleged funding through various middlemen and companies, reaches court more than a decade later.

Among the 12 others facing trial in the case are Sarkozy's former right-hand man Claude Gueant, former Interior Minister Brice Hortefeux and his then-head of campaign financing Eric Woerth - all three were present in court on Monday.

"This alleged illicit financing illustrates the mechanisms of cross-border corruption, which deprives civilian populations of essential public resources by diverting funds to private and political interests," anti-corruption groups Sherpa, Anticor and Transparency International said in a joint statement.

($1 = 0.9708 euros)