Court delays Lagarde probe decision
The new chief of the International Monetary Fund has won a legal reprieve when a French court delayed a decision on investigating her involvement in a €285m arbitration deal.
Christine Lagarde, who took the helm of the IMF this week, has her hands full even without a judicial probe to worry about.
She must tackle resurgent fears about Europe’s debts, and revive confidence in the fund after her predecessor quit to face charges he tried to rape a New York hotel maid.
The potential French probe has dogged Lagarde since before she was appointed to head the IMF last month.
Lagarde was France’s finance minister at the time of a 2008 arbitration deal for French magnate Bernard Tapie.
Tapie won what some called a too-generous private settlement with a French state-owned bank over the mishandled sale of sportswear maker Adidas in the 1990s.
A French prosecutor wants an investigation into Lagarde’s role in the deal, saying he suspects she abused her authority.
Critics have said she should have challenged the independence of one of the arbitrators, and should have appealed against the arbitration decision.
A commission at the Court of Justice of the Republic convened today to decide whether to launch an investigation.
In a surprise announcement, the court said it had to delay its decision until August 4 because one of the judges on the panel said he did not want to be involved in the case. No reason was given.
Lagarde’s lawyer was not immediately available for comment..
Lagarde said on France-24 television this week that whether the French court decides to investigate, “I have the exact same confidence, and same sense of calm.”
Any investigation, if launched, would take months and might not necessarily result in a trial.
