[QODLink]
Europe
IMF chief faces French probe over deal
Christine Lagarde under investigation over her role in a financial settlement when she was finance minister.
Last Modified: 04 Aug 2011 14:58

A French court has ordered that Christine Lagarde, the International Monetary Fund chief, be investigated for the role that she played in a financial settlement paid to a friend of President Nicolas Sarkozy during her tenure as finance minister.

Lagarde is accused of misconduct for overruling objections from advisers to approve a $407m arbitration payout to Bernard Tapie in 2008. Tapie had a long-running legal dispute with Credit Lyonnais, a former state-owned bank.

He claimed that the bank defrauded him when it sold his stake in Adidas sports clothing group in 1993.

Critics argue that the legal battle should not have gone to private arbitration, as it involved a state-owned bank.

Thursday's order came as no surprise to Lagarde.

Her lawyer, Yves Repiquet, said that Lagarde had been relieved to hear the news - as it ended months of speculation over whether a complaint submitted by opposition groups would result in a probe.

In an emailed statement, Repiquet said: "This procedure is in no way incompatible with the current functions of the managing director of the IMF."

Lagarde was appointed head of the IMF last month after her predecessor, Dominique Strauss-Kahn, was charged with sexually assaulting a New York hotel maid and quit.

Source:
Agencies
Topics in this article
People
City
Organisation
Featured on Al Jazeera
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
Colleagues of detained Al Jazeera journalists press demands for their release, 100 days after their arrest in Egypt.
Mehdi Hasan discusses online freedoms and the potential of the web with Wikipedia founder Jimmy Wales.
A tight race seems likely as 814 million voters elect leaders in world's largest democracy next week.
Featured
Since independence, Zimbabwe has faced food shortages, hyperinflation - and several political crises.
After a sit-in protest at Poland's parliament, lawmakers are set to raise government aid to carers of disabled youth.
A vocal minority in Ukraine's east wants to join Russia, and Kiev has so far been unable to put down the separatists.
Iran's government has shifted its take on 'brain drain' but is the change enough to reverse the flow?
Deadly attacks on anti-mining activists in the Philippines part of a global trend, according to new report.
join our mailing list