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Tuesday, November 23, 2010

Arms scandal threatens to undermine Sarkozy re-election bid

Nicolas SarkozyFrench President Nicolas Sarkozy has been caught up in fresh allegations surrounding a French arms contract and subsequent bomb attack, a further embarrassment to the centre-right leader just 18 months before presidential elections.

During a recent search of files held by France's tax department, the judge investigating the case appears to have found "extremely interesting" documents detailing a system of kickbacks related to the 1994 sale of French submarines to Pakistan, reports Le Parisian daily newspaper on Tuesday (23 November).

Investigators are seeking to verify whether money surrounding the sale was illegally channelled back to the presidential campaign of Edouard Balladur, the then prime minister.

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