IMF chief to stand trial over French arbitration
PARIS — France’s top court has ruled that International Monetary Fund chief Christine Lagarde must stand trial in France over a 2008 arbitration ruling that handed $440 million to a politically connected business magnate.
Lagarde, who was French finance minister at the time of the deal in favor of tycoon Bernard Tapie, is accused of negligence in the case. She has denied wrongdoing.
A special court ruled in December that Lagarde should stand trial, but she appealed. France’s Court of Cassation on Friday rejected the appeal.
Lagarde lawyer Patrick Maisonneuve expressed disappointment at the decision but said that he expects the trial to show that the IMF chief did nothing wrong.
The unusually generous 2008 arbitration deal, paid from public funds, prompted years of legal disputes that remain unresolved.
IMF spokesman Gerry Rice said Friday that the Executive Board “continues to express its confidence in the Managing Director’s ability to effectively carry out her duties.”
The decision last year to send her to trial had come as a surprise because a prosecutor had earlier argued that the case against her should be dropped.
“Negligence” by a person invested with public authority carries a risk of up to a year in prison and a $16,500 fine.
She will be tried at the Court of Justice of the Republic, a special body that tries government ministers for alleged wrongdoing while in office.
A date has not been set for the trial.