I.M.F. Chief Faces Trial in Case Dating to Time as French Finance Minister
- 9 years ago
A special French court on Thursday ordered Christine Lagarde , the managing director of the International Monetary Fund , to stand trial on charges of negligence that date back to when she served as France 's finance minister, the second time in five years that a top French I.M.F. official has faced legal scrutiny.
The order by the French Court of Justice could mean that Ms. Lagarde will be embroiled in a potentially lengthy process to address accusations that she acted negligently while overseeing a politically charged 2007 arbitration case, when the state awarded a payout of 404 million euros, about $441 million at current exchange rates, to a flamboyant French tycoon, Bernard Tapie.
The I.M.F. did not comment on whether Ms. Lagarde, who is the first woman to lead it, would be required to recuse herself from her post during the trial.
But the I.M.F. board was aware of Ms. Lagarde's legal entanglement when she was appointed in June 2011 to take the helm from Dominique Strauss-Kahn, another former French finance minister seen as a contender for the French presidency before he was forced to resign his post at the I.M.F. amid a sex scandal.
The order by the French Court of Justice could mean that Ms. Lagarde will be embroiled in a potentially lengthy process to address accusations that she acted negligently while overseeing a politically charged 2007 arbitration case, when the state awarded a payout of 404 million euros, about $441 million at current exchange rates, to a flamboyant French tycoon, Bernard Tapie.
The I.M.F. did not comment on whether Ms. Lagarde, who is the first woman to lead it, would be required to recuse herself from her post during the trial.
But the I.M.F. board was aware of Ms. Lagarde's legal entanglement when she was appointed in June 2011 to take the helm from Dominique Strauss-Kahn, another former French finance minister seen as a contender for the French presidency before he was forced to resign his post at the I.M.F. amid a sex scandal.