Turin Mayor Chiara Appendino was found guilty of falsehood by a court on Monday and handed an six-month term.
Appendino said she would stay on as mayor but would suspend herself from the 5-Star Movement (M5S), which prides itself on being untainted by graft and scandal.
Appendino's lawyer was confident the conviction would be overturned on appeal Sergio Ronaldo, the city budget chief, also got six months while former chief of staff Paolo Giordana got eight months.
The case relates to an investigation regarding the site of the former Westinghouse facility over a so-called 'phantom' debt of five million euros with the Ream body that allegedly disappeared from the 2016 balance sheet.
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