IMF boss to stand trial over £330 m state payout
CHRISTINE Lagarde has been ordered to stand trial in France over a £330million state payout to a tycoon when she was a senior government minister.
The head of the International Monetary Fund is charged with negligence over her handling of a dispute between a state-owned bank and businessman Bernard Tapie over the sale of sportswear giant Adidas.
It is a major blow to the stellar career of Mrs Lagarde, 60, who has long been touted as a potential French president. She had worked hard to restore the reputation of the IMF after its former chief Dominique Strauss-Kahn was forced to resign over sexual assault allegations.
It comes after the former corporate lawyer sparked anger during the Brexit campaign when she implied that Eurosceptic voters were narrow-minded.
France’s highest appeal court dismissed her challenge against the decision to try her for negligence in her handling of a dispute between Credit Lyonnais bank and Mr Tapie.
He walked away with a staggering £330million in compensation in 2008 after Mrs Lagarde, then French finance minister, ordered the row to be resolved by arbitration instead of in the courts, which would likely have resulted in a far smaller bill for the state. Prosecutors have also questioned her failure to challenge the massive award.
The ruling yesterday means Mrs Lagarde will go before a special tribunal that hears cases against govern- ment ministers accused of wrongdoing in the discharge of their duties.
She insists she acted in France’s best interests and the IMF expressed firm backing for her as it was confirmed she would face trial.
The Washington-based lender ‘continues to express its confidence in the Managing Director’s ability to effectively carry out her duties,’ said IMF spokesman Gerry Rice. Her lawyer Patrick Maisonneuve said he was ‘convinced’ that Mrs Lagarde would be ‘absolved of all responsibility’.
She will be the third successive IMF chief to face trial. Her predecessor, compatriot Mr Strauss-Kahn, was acquitted of pimping by a French court last year, four years after he resigned his IMF post to fight separate sexual assault allegations.
Spain’s former IMF chief Rodrigo Rato has also been ordered to stand trial for misusing funds when he was head of Spanish lender Bankia.
Mrs Lagarde has denied any wrongdoing or that she acted on orders from then-president Nicolas Sarkozy, of whom Mr Tapie was a supporter.
If convicted, she risks up to a year in prison and a fine of £12,500.
‘She risks up to a year in prison’