News Column

IMF chief under scrutiny

August 27, 2014



Christine Lagarde, the chief of the International Monetary Fund, was placed Wednesday under official investigation for negligence in a French corruption probe that dates back to her days as France's finance minister.

In a statement after a fourth round of questioning before magistrates, Lagarde said she would return to her work in Washington later in the day and said the decision was "without basis."

She and her former chief of staff face questions about their role in a $574-million payment to a businessman.

Under French law, the official investigation is equivalent to preliminary charges, meaning there is reason to suspect an infraction. Investigating judges can later drop a case or issue formal charges and send it to trial.

The payment was made to Bernard Tapie in arbitration over a dispute with state-owned bank Credit Lyonnais over the botched sale of sportswear company Adidas. Critics have said the deal was too generous, and a example of the cozy relationship between money and power in France.

The court investigating the Tapie payment has been constituted specifically for allegations of wrongdoing against office-holders.


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Source: Baystreet Global Markets (Canada)


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