TEHRAN, Iran (CNN) --The reformist mayor of Tehran was sentenced Thursday to five years in prison on corruption charges in a case that has riveted Iranians and come to reflect the growing struggle for power between reformists and hard-liners in Iran's ruling clergy.

In addition to the jail term, Gholamhossein Karbaschi, was banned from holding public office for 20 years and sentenced to 60 lashes. The court suspended the flogging because of his social standing. He was also fined $333,333.

Karbaschi, who is a powerfully ally of moderate President Mohammad Khatami, was found guilty of embezzlement, wasting public money and misconduct in government transactions. Some of the embezzled funds were allegedly used to finance the election campaign of Khatami. He was acquitted of bribery.

Karbaschi admitted to making mistakes in his financial dealings, but denied any that he ever stole any money from the government.

Karbaschi, who was not in court to hear the judgment, has 20 days to appeal the verdict. Karbaschi's lawyer said he would appeal the verdict, which he described as harsher than expected.

Many people in Iran have said the trial, which was televised, is political, designed to punish Karbaschi for supporting Khatami. Karbaschi ran the campaign that got Khatami elected with a landslide in the May 1997 election. Journalist Kasra Naji, who was in the courtroom, spoke with Judge Gholamhossein Mohseni Ejaei after the trial and reported on CNN that the judge "absolutely rejects" any allegation of a political motive behind the trial.

The court session began with an official reading a 39-page report, repeating the charges that were heard during the trial that has gripped the country since it opened June 7.

Ejaei said Karbaschi would remain free on bail until he decides whether he wants to appeal or not.

Hundreds of journalists were crammed in the court at the Imam Khomeini Judicial Complex. Outside, police and firefighters were on alert in case the verdict sparked violent protests in favor of the popular mayor. Riots broke out in Tehran when he was arrested in April.

The trial was not without drama: Karbaschi accused the judge, who is also the prosecutor, of being unfair by refusing to call witnesses he had requested. The judge frequently threatened to slap Karbaschi with contempt.

During his final address on July 11, Karbaschi broke down after telling the court that a teen-age girl had sent him two gold coins as a contribution to his defense expenses. They were her life's savings, and she had not provided her name and address, he said.

The gesture provided evidence of the considerable support that Karbaschi wields, in part because he is an ally of the hugely popular Khatami.

The official Islamic Republic News Agency reported that its switchboard was jammed since morning by callers eager to know about the verdict.

Khatami is trying to loosen almost two decades of social and political restrictions imposed by the clergy who took power in the 1979 Islamic revolution that toppled the U.S.-backed shah.

But he has faced stiff opposition from the hard-liners who are backed by Iran's supreme leader, Ayatollah Ali Khamenei.

Besides initiating the trial against Karbaschi, the hard-liners recently impeached the interior minister, another Khatami ally. But in a bid to avoid a confrontation, they approved Wednesday another of Khatami's nominee for the post.