Czech prosecutors have charged seven people in a multi-pronged scandal involving the prime minister's aide, his estranged wife, the military, former MPs and kilograms of gold.

The arrests raised questions about the troubled government of Czech Prime Minister Petr Necas.

Nobody outside the halls of Czech power seems to know what's going on or how the rapidly-moving developments are connected, but a list of them reads like elements in a spy novel:

- The Czech military was spying on the prime minister's estranged wife.

- Millions of dollars and a stash of gold bars were seized by hooded police in 31 overnight raids nationwide.

- Seven people have been charged with abuse of power or corruption, according to prosecutors.

Czechs, who have grown used to high-level corruption scandals since the fall of communism in 1989 - including a former defence minister asking the US ambassador for a five million dollar bribe - are watching the developments with bewilderment.

Czech police and prosecutors said they believe Mr Necas' closest aide ordered a military intelligence agency to illegally spy on three people, vastly overstepping her authority.

Prosecutor Ivo Istvan said Jana Nagyova, the head of the prime minister's office, has been charged with abuse of power and six others face charges of abuse of power and corruption.

The opposition is calling for Mr Necas to stand down and for early elections to be held. He has refused their demands and so far still has the backing of his coalition partners.

"It is the biggest case of that kind," said Radim Bures of the local branch of Transparency International, a corruption watchdog. "The key thing is that the investigation is carefully mapping all those ties that lead to top politicians. They got to the core of the problem. It's organised crime par excellence."

Ms Nagyova is suspected of directing the alleged illegal surveillance without any authorisation, the prosecutor said.

Reports said alleged targets of the illegal spying included Mr Necas' estranged wife.

Mr Necas announced earlier this week that he and his wife Radka filed for divorce. Tabloid newspapers have speculated about an affair between him and Ms Nagyova.

"I have no reason to think that she has committed anything illegal," Mr Necas said about his aide.

Robert Slechta, the head of the police anti-organised crime unit, said officers seized 150 million koruna in cash and tens of kilos of gold in 31 raids in different parts of the country. The prosecutors linked Ms Nagyova to that case but didn't specify her role.

Mr Necas confirmed in Parliament that Milan Kovanda, the head of Military Intelligence, and his predecessor Ondrej Palenik have been charged.

"The arrest of two generals who have served the country in this theatrical way ... fatally harms the Czech Republic," he declared.

In another line of investigation, prosecutors said two former Czech MPs have been charged with bribery and another one is under investigation because authorities believe "they didn't act in line with their constitutional oaths."

The three members of the prime minister's conservative Civic Democratic Party opposed the government's tax hikes last year. But they resigned from Parliament right before the decisive vote - and that move enabled Mr Necas' coalition government to survive because the vote was linked a vote of confidence in the government.

At least two of them have since been given lucrative posts in state-run companies.Mr Necas defended that today, saying it was a "standard political deal."

Prosecutor gave no detailsabout the seventh person charged.

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