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Friday, 9 January, 1998, 01:35 GMT
Fraud investigation underway in Mexico City

The new local government in Mexico City is investigating allegations of fraud under the previous administration.

The head of the assembly's auditing committee, Jose Narro, said dozens of cases of suspected embezzlement might be referred to prosecutors.

He said the cases being probed could involve some six-hundred-million dollars.

Last month, the leader of the left-wing PRD party, Cuauhtemoc Cardenas, took office as Mexico City's popularly-elected mayor.

The capital's mayors had previously been supporters of the ruling PRI party, appointed by the Mexican president.

From the newsroom of the BBC World Service

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