IMF chief Christine Lagarde is facing an accusation of “simple negligence” by the French authorities over a €400m payout to French business tycoon Bernard Tapie that occurred when she was finance minister.
Lagarde was questioned for 15 hours at the Court of Justice in Paris in August and she subsequently announced that she had been placed under investigation by a magistrate. This court deals with cases of alleged ministerial wrongdoing.The case, which has been running since 2011, will overshadow Lagarde’s work at the IMF but it says she will continue to work there as normal.
Lagarde denies the allegation, saying that she acted properly and within the law and has insisted she has no intention of resigning. She is challenging the magistrate’s decision and the investigating commission will have six months to study the appeal and accept it or reject it.However, it is unclear what her position would be were she to be formally charged. Lagarde still has two years to run at the IMF but some emerging market countries might use the opportunity to push for the job to go to an official from outside the European Union for the first time.