March 20, 2019

IMF chief faces trial over corruption scandal

IMF chief faces trial over corruption scandal

Christine Lagarde, the managing director of the International Monetary Fund, has been ordered to stand trial in a corruption scandal that dates all the way back to 1993. The order came down from France’s Court of Justice of the Republic, which hears cases against ministers accused of committing crimes while in office.

The case hinges on whether Lagarde was being negligent with state funds when, as French finance minister, she signed off on a €400 million ($432 million) payment to businessman Bernard Tapie, who sold his stake in Adidas to investment bank Credit Lyonnais but later alleged fraud, after the bank turned around and sold the stake for a higher price. He was ordered to pay the money back earlier this month.

The payment from the government’s coffers was a problem because Tapie was friends with France’s then-president Nicolas Sarkozy. Read more

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