Two French construction firm executives have been dismissed over their alleged role in a prostitution ring that has been linked to former IMF chief Dominique Strauss-Kahn, the company's CEO said Tuesday.

The affair started with the discovery earlier this year of a network that supplied prostitutes to clients of the luxury Carlton hotel in the northern city of Lille.

Eight people have been arrested, including several Carlton managers, businessmen and a local police commissioner, who are now under official inquiry on suspicion of organizing prostitution.

The case blew into a bigger affair when French media reported Strauss-Kahn's name had surfaced in text messages uncovered during the investigation.

Pierre Berger, chief executive of French construction group Eiffage , said David Roquet, head of one of the group's subsidiaries, and his line manager had been dismissed.

Berger declined to disclose the name of the line manager, saying the investigation was still ongoing.

Investigators have alleged that Roquet used corporate funds to supply prostitutes to associates and pay for the women to travel to Paris and Washington and take part in sex parties with Strauss-Kahn at his own request.

Strauss-Kahn last month asked to speak to investigators in the case over the allegations in order to end the dangerous and malicious insinuations.

Eiffage, which suspended Roquet in October, has filed a complaint for misuse of corporate funds. Its own investigation has uncovered that Roquet's improper spending totalled at least 50,000 euros (32,000 pounds).

Roquet has maintained that Eiffage was aware of the parties, according to his lawyer.

The case has revived a media furore surrounding Strauss-Kahn, once favourite to become France's next president, after U.S. prosecutors dropped charges that he tried to rape a hotel maid in New York.

(Reporting by Gilles Guillaume; Writing by Elena Berton; Additional reporting by Vicky Buffery; Editing by Christian Plumb, Helen Massy-Beresford and Peter Graff)