Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

A landslide victory for the 'invisible candidate' in Algeria's Presidential polls

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014 (part 2)

Read more

MEDIAWATCH

Presidential adviser resigns over "shoe-shine scandal"

Read more

#THE 51%

Breaking stereotypes

Read more

#TECH 24

Galaxy S5 v. HTC One (M8): Which is the right one for you?

Read more

FRANCE IN FOCUS

New PM Manuel Valls outlines priorities

Read more

FASHION

Jean-Marc Loubier, bags and shoes.

Read more

ENCORE!

Hip-hop musician Beat Assailant on mixing the sounds of the city

Read more

  • French journalists abducted in Syria freed

    Read more

  • South Korea ferry captain defends decision to delay evacuation

    Read more

  • In pictures: Good Friday celebrated across the globe

    Read more

  • VIDEO: Anti-Semitic leaflets in Eastern Ukraine condemned

    Read more

  • Bouteflika, the ghost president

    Read more

  • Does Valls’ upcoming Vatican trip violate French secularism?

    Read more

  • Ukraine separatists say ‘not bound’ by Geneva deal

    Read more

  • Abel Ferrara’s hotly awaited DSK film to premiere on web

    Read more

  • Obama signs bill to block controversial Iran diplomat from UN post

    Read more

  • Ukraine: ‘One bloody incident could scupper Geneva deal’

    Read more

  • Astronomers discover Earth-like planet that could support life

    Read more

  • Indian election: Votes for sale

    Read more

  • World honours Garcia Marquez’s magical literary legacy

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

  • Algeria's ailing Bouteflika clinches fourth term amid fraud claims

    Read more

  • Top Hollande adviser resigns over conflict of interest accusation

    Read more

  • West African Ebola outbreak caused by new strain of virus

    Read more

  • In Prijedor, survivors fight to keep memory alive

    Read more

  • Mob launches deadly attack on UN shelter for S. Sudan civilians

    Read more

  • Stagehand of God? Maradona's legendary goal inspires a play

    Read more

France

French court to rule on Lagarde investigation

©

Text by News Wires

Latest update : 2011-08-04

French judges will decide Thursday whether an inquiry into IMF chief Christine Lagarde is required following allegations that she abused her position as French finance minister, allegedly approving a compensation payout to businessman Bernard Tapie.

REUTERS - French judges will rule on Thursday whether IMF chief Christine Lagarde should be formally investigated for approving a compensation payout to a friend of President Nicolas Sarkozy when she was finance minister.

If the Court of Justice of the Republic backs the prosecutor’s request it would cast a pall over Lagarde’s stewardship of the International Monetary Fund a month after she took office amid global economic turmoil.

Prosecutors say Lagarde abused her authority by approving a 285 million euro ($405 million) payment to businessman Bernard Tapie in 2008 to settle his claim that former state-owned bank Credit Lyonnais defrauded him in the 1993 sale of his stake in sports clothing business Adidas.

Tapie, a former left-wing government minister who switched sides to support Sarkozy’s 2007 presidential campaign, had lost the case in 2006 before France’s highest court and was appealing the decision when Sarkozy won power.

Lagarde, who denies any misconduct, overruled objections from some ministry officials to drop the judicial case and pressed ahead with the arbitration, arguing it was needed to resolve the long-running case swiftly.

There is no suggestion she profited personally in any way from the final settlement.

However, judicial sources said it was likely a probe would be opened after two senior finance ministry officials have been referred to disciplinary panels and are the subject of a police investigation.

France’s cumbersome justice system means a probe could run on for years, hanging over Lagarde as she tries to make her mark at the IMF and win over critics, particularly emerging nations angry at Europe’s six-decade stranglehold on the Fund’s top job.

THE ONLY COURT WITH THE POWER TO TRY GOVERNMENT MINISTERS

Lagarde, a lawyer by training, won the IMF job after its former managing director Dominique Strauss-Kahn—another former French finance minister—resigned following his arrest in May on charges of attempting to rape a New York hotel maid.

Wary of further embarrassment, the Fund wrote tougher ethical guidelines into Lagarde’s contract.

An inquiry could take months to get started as it cannot begin until a replacement is found for Jean-Louis Nadal, the public prosecutor who recommended the inquiry at the request of opposition Socialist party lawmakers but then retired in June.

The court was initially due to make its decision in early June, but judges asked for more time to weigh the evidence.

If an inquiry is opened, a panel of judges at the court would need to wait for a full report on the case which would be put together by whoever replaces Nadal.

 

Date created : 2011-08-04

  • FRANCE

    Court delays decision on Lagarde inquiry

    Read more

  • ECONOMY

    Christine Lagarde: A French politician with an American pedigree

    Read more

  • FRANCE

    Lagarde funding scandal threatens ruling party’s ‘golden girl’

    Read more

Comments

COMMENT(S)