Saturday, December 26, 2015

Christine Lagarde, the head of the International Monetary Fund (IMF), has been charged with "negligence" by a French court over her role in a €403m (£293m) sum handed over to a French businessman. Ms Lagarde, the fund’s managing director, has been ordered to stand before the court over her involvement in the Bernard Tapie scandal. The saga extends back over more than two decades, and is rooted to decisions made during her tenure as France's finance minister. Her part in the settlement paid to the tycoon has been played out through the courts for years. Mr Tapie claimed he was shortchanged by Credit Lyonnais bank after its sale of the Adidas sportswear empire in 1993, of which he was head. Despite a French court recommending that Ms Lagarde be acquitted in September, France’s Court of Justice of the Republic has decided that she should face charges. The court exists to deal with the crimes of French ministers while in office. The IMF chief’s lawyer, Yves Repiquet said on Thursday that the court’s decision was “incomprehensible”. Speaking on French television, he said that he would “recommend Ms Lagarde appeal this decision”. In a statement, Ms Lagarde said that she shared “the prosecutors’ view that there is no basis for any charge” against her. She reaffirmed “that she acted in the best interest of the French state, and in full compliance with the law”.  Gerry Rice, the IMF’s communications director, said: “The executive board continues to express its confidence in the managing director’s ability to effectively carry out her duties.” France’s current finance minister, Michel Sapin, said that the court’s decision should not interfere with the IMF’s operations, which see it provide financial assistance to economies in dire straits. “She's innocent until proven guilty, so I don't see how this should prevent her from carrying out her current duties,” he said. Mr Tapie is a controversial figure in French public life. The former president of the Marseille football club has spent a spell in prison for match fixing, and has been convicted for tax fraud.

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