Former French president Jacques Chirac's legal woes mounted when he was warned he could face a second set of charges that he paid allies by creating fake jobs on the Paris city hall payroll.

The 77-year-old political veteran was already on course to become the first former French president to go on trial, having been charged in October with corruptly abusing his position as mayor of Paris between 1977 and 1995.

On Friday, he was again placed under formal investigation, a first step towards new charges, in seven more cases in which he is alleged to have used city funds to pay staff in reality working for his political party.

Chirac's lawyer Jean Veil said that the former president had met Judge Jacques Gazeux from the Nanterre criminal court early Friday in a state ombudsman's office.

"The hearing lasted 20 minutes. The judge asked no questions," Veil told AFP, adding that Chirac had been placed under formal investigation for "illegal influence peddling in the matter of seven jobs."

Chirac was protected from judicial investigation by presidential immunity from prosecution for 12 years, but if he is now convicted on these charges he could face a five-year jail term and a 75,000 euro (US$108,000) fine.

No such 'ghost jobs'

Chirac's office issued a statement confirming that he had been once again placed under formal investigation, and insisted there had been no "system" of ghost jobs while he was mayor of Paris, as has been alleged.

"In this case, as in the other one being pursued in Paris, President Chirac hopes that the procedure can go forward as quickly as possible in order that he can definitively establish his innocence," it said.

In October, Paris judicial officials said Chirac would face trial next year on charges of "abuse of trust" and "misuse of public funds", charges which could see him serve up to three or ten years in jail respectively.

The previous case also turns on allegations that nine names on the city hall payroll during Chirac's tenure were in reality working only for his political party, the right-wing RPR.

President for 12 years, prime minister for six and mayor of Paris for 18, Chirac has been a central figure in French political life for more than four decades and polls still show him to be one of its most popular figures.

But while Chirac's approval rating remains high, polls show seven in 10 French people believe he should nevertheless stand trial for corruption.

- AFP