IMF chief under investigation in France for abuse of authority
International Monetary Fund (IMF) chief Christine Lagarde is currently being investigated by a French court for her role in a financial dispute between French tycoon Bernard Tapie and Credit Lyonnais.
Lagarde is currently being accused for abusing her authority as French Finance Minister when, in 2007, she allegedly intervened in the long-running court dispute between French tycoon Bernard Tapie—a former television presenter and owner of Adidas back in the 1990s—and Credit Lyonnais.
Tapie accused Credit Lyonnais of fraudulently profiting from the sale of Adidas in 1993 by offering loans to its new owners at a special rate. According to sources, Lagarde gave Tapie preferential treatment during the court case due to his support for then-president Nicolas Sarkozy. She also told a parliamentary commission that Tapie would never receive more than 30 million euros ($42 million) as a result of the settlement which was completed through a private arbitration.
Lagarde denies any wrongdoing in the said allegations. Her lawyer, Yves Repiquet , told reporters that they are not worried about the case.
“The result will be such that it will be precisely Christine Lagarde’s innocence that will be proven,” he said.
Meanwhile, the IMF executive board issued a statement of “no comment” on Thursday to reporters.
“It would not be appropriate for the board to comment on a case that is currently before the French judiciary,” they said. “However, the board is confident that she will be able to effectively carry out her duties as managing director [of the committee].”
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