July 24, AtoZForex – According to the decision of France’s highest appeals court, Christine Lagarde, the head of the International Monetary Fund (IMF), has to stand trial over a payment of €403 million to the french magnate, Bernard Tapie. The IMF Chief’s appeal in December 2015, against the court’s order to stand trial over negligence allegations during the case.
In 2008 Bernard Tapie, a French businessman and politician, won 403 million of euros in the case against the French public bank Crédit Lyonnais, claiming that the bank undervalued his share in Adidas. At that time, Christine Lagarde was working as the France’s finance minister and she approved the payment for Bernard Tapie.
Now Christine Lagarde faces trial as she is accused of negligence in misusing the public funds by permitting an out-of-court arbitration in the dispute with Bernard Tapie. Although the arbitration judges accepted Bernard’s claim and signed off the payment. The court of appeal in Paris discarded this decision and asked the businessman to repay the money to the state. In response, Bernard Tapie submitted an appeal which is still unsettled at present.
IMF Chief faces prison sentence and fine
Christian Lagarde refuses any misconduct and the IMF has supported its Chief in this trial. Yet, if the head of the IMF is eventually found, then she will be imprisoned for a year and get a fine of €15,000. Additionally, the Christine Lagarde’s lawyer, Patrick Maisonneuve, made the following comment:
“I am convinced that the court will find the allegations of negligence to be without merit”.
The case will be discussed at the Court de Justice de la Republique, which resolves affairs related to ministers, who are accused of illegal acts in regards to their position. It will be the fifth trial in the history of the court. The tribunal is composed of three judges and six lawmakers representing the lower and upper houses of parliament.
IMF supports Christine Lagarde
Despite the approaching threat, Christine Lagarde was assigned as the managing director of the IMF for the second term in January this year. Moreover, she was supported to remain in her position by China, UK, Germany, and France. According to the Gerry Rice, a spokesman from the IMF, the executive board was informed about the affair and they are assured of her ability to perform the duties.
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