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France investigates IMF chief over 2007 payout

Press TV – May 23, 2013

French authorities are interrogating International Monetary Fund (IMF) chief Christine Lagarde in connection with a controversial payout to a French tycoon during her term as France’s finance minister.

The 57-year-old appeared in France’s Court of Justice of the Republic (CJR) on Thursday.

The court, which investigates cases of ministerial misconduct, is probing Lagarde’s handling of a dispute in 2007 that resulted in 400 million euros (USD 515 million) payment to the former politician and controversial business figure, Bernard Tapie.

The CJR prosecutors suspect that he was granted the treatment in return for backing former President Nicolas Sarkozy in the 2007 presidential race.

Lagarde, who was France’s finance minister at that time, is accused of being responsible for “numerous anomalies and irregularities” which could lead her to be charged for complicity in fraud and misappropriation of public funds.

The investigation focused on Lagarde’s move in 2007, when she asked a panel of judges to arbitrate in a row between Tapie and the partly state-owned Credit Lyonnais over his sale of sports group Adidas in 1993.

Tapie had accused the bank of defrauding him by deliberately undervaluing Adidas at the time of the sale. He further said that the state – as the former principal shareholder in the bank – should compensate him.

Tapie was previously jailed on charges of match-fixing when he was the president of French football club Olympique de Marseille.

The criminal charges are regarded as the second straight scandal for an IMF chief since Lagarde succeeded Dominique Strauss-Kahn, who quit over allegations of an assault on a hotel maid in New York.

Lagarde, however, has downplayed the investigation.

“There’s nothing new under the sun. Ever since 2011 I had known very well that I will be heard by the investigative commission of the Cour de Justice,” she said last month.

May 23, 2013 - Posted by | Corruption | , , , , ,

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