BREAKING NEWS, Business
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CHRISTINE Lagarde, head of the International Monetary Fund, IMF, will stand trial over a state payout to the French tycoon, Bernard Tapie, an appeals court has ruled. She is charged with negligence over the award to Tapie of €404m ($445m, £339m) in 2008 when she was France’s economy minister, the BBC reports.
Lagarde had appealed against a lower court ruling from December. She is now expected to appear before a special court for government ministers. The case stems from Tapie’s sale of his majority stake in the sports equipment company, Adidas, which was handled by the state-owned bank, Credit Lyonnais.
The businessman sued for compensation after claiming he was defrauded by the bank and received too little from the sale in 1993. Lagarde was responsible for the rare decision to appoint an arbitration panel, rather than allowing the courts to decide on the dispute.
She served as economy minister when President Nicolas Sarkozy was in office. Tapie was a supporter of Mr. Sarkozy and there were allegations this may have played a role in her decision. She has always denied any wrongdoing, saying she acted in the interest of the state and with respect for the law. – The Nation
— Aug 1, 2016 @ 01:00 GMT
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