Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

France's Plan to Tackle Racism

Read more

THE WORLD THIS WEEK

Marine Le Pen and Thomas Piketty in Time magazine's power list; EU takes on Google; Gunter Grass dies (part 2)

Read more

THE WORLD THIS WEEK

Deadly Crossing: Migrants desperate to reach Europe; Abadi in Washington (part 1)

Read more

EYE ON AFRICA

Xenophobic attacks in South Africa: anti-violence marches and anti immigration protest

Read more

FRANCE IN FOCUS

French PM outlines action plan against racism, anti-Semitism

Read more

REPORTERS

Turkey’s hidden Armenians search for stolen identity

Read more

REVISITED

Families of slain Marikana miners still demanding justice

Read more

#TECH 24

Europe vs. Google: EU accuses search giant of market dominance abuse

Read more

#THE 51%

Women in America: Land of the free, home to the less-paid

Read more

France

IMF’s Lagarde investigated in French corruption case

© Thomas Samson, AFP | IMF chief Christine Lagarde

Text by FRANCE 24

Latest update : 2014-08-27

IMF chief Christine Lagarde revealed Wednesday that she is under formal investigation in France for “negligence” over her role in a 2008 corruption case that involved a controversial state payout to French tycoon Bernard Tapie.

The former French finance minister told the AFP news agency that she had no intention of resigning from her position at the International Monetary Fund (IMF) over the investigation.

"I return back to Washington where I will indeed brief my board," she said.

The case revolves around a controversial €400 million state payout to Tapie ordered by an arbitration panel in 2008 over his sale of sportswear company Adidas. The arbitration panel upheld Tapie's claim that the now-defunct Crédit Lyonnais bank had defrauded him by intentionally undervaluing Adidas at the time of the sale and that the state – as the bank's principal shareholder – should compensate him.

Critics have said the deal was too generous, and was symptomatic of the cosy relationship between money and power in France

It was Lagarde who, in her role as French finance minister at the time, ordered the case to be heard by an arbitration panel instead of proceeding through the regular courts.

FRANCE 24’s Stephen Carroll explains the ‘Tapie Affair’

The shocking news that Lagarde had been placed under formal investigation in the case came just a day after she was questioned for the fourth time by a special court in Paris that handles ministerial misconduct.

Lagarde, who has always denied any wrongdoing, said that she planned to challenge the decision.

"I have instructed my lawyer to appeal this decision, which I consider totally without merit," she said.

(FRANCE 24 with AFP, AP)

Date created : 2014-08-27

  • FRANCE

    IMF's Lagarde questioned in court over 'Tapie Affair'

    Read more

  • FRANCE

    French tycoon indicted in case linked to IMF chief

    Read more

  • FRANCE

    French tycoon questioned in case linked to IMF chief

    Read more

COMMENT(S)