IMF Boss Lagarde To Stand Trial Over $400 Mn Payout

IMF boss Lagarde to stand trial over $400 mn payout

PARIS, (Pakistan Point News - 22th july, 2016) - IMF chief Christine Lagarde was ordered Friday to stand trial in France over a massive state payout to a colourful tycoon when she was French economy minister, dealing a setback to her stellar career. France's highest appeals court dismissed Lagarde's challenge against the decision to try her for negligence in her handling of a dispute between a state-owned bank and businessman Bernard Tapie.

Tapie walked away with a staggering 404 million Euros ($445 million) in compensation in 2008 after Lagarde ordered the long-running row over the sale of sports gear giant Adidas to be resolved by arbitration. Friday's ruling means the 60-year-old IMF chief will go before a special tribunal that hears cases against government ministers accused of wrongdoing in the discharge of their duties. The ruling is a blow to the IMF boss, who has long been touted as a potential future French president.

She insists she acted in France's best interests in the case, and the IMF expressed firm backing for her as it was confirmed she would face trial. The Washington-based lender "continues to express its confidence in the Managing Director's ability to effectively carry out her duties," said IMF spokesman Gerry Rice. Her lawyer Patrick Maisonneuve said he was "convinced" that Lagarde would be "absolved of all responsibility". Lagarde will be the third successive IMF chief to face trial.