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IMF chief Lagarde to stand trial in France | |
(35 minutes later) | |
IMF chief Christine Lagarde is to stand trial in France for alleged negligence over a €400m (£291m; $434m) payment to a businessman in 2008. | |
She was finance minister in President Nicolas Sarkozy's government at the time of the compensation award to Bernard Tapie for the sale of a firm. | |
Mr Tapie supported Mr Sarkozy in the 2007 presidential election. | Mr Tapie supported Mr Sarkozy in the 2007 presidential election. |
Ms Lagarde's lawyer described the court's decision as "incomprehensible", and said the IMF boss would appeal. | |
Mr Tapie was once a majority shareholder in sports goods company Adidas but sold it in 1993 in order to become a cabinet minister in Francois Mitterrand's Socialist government. | |
He sued the Credit Lyonnais bank over its handling of the sale, alleging that the partly state-owned bank had defrauded him by deliberately undervaluing the company. | |
His case was later referred by Ms Lagarde to a three-member arbitration panel which awarded the compensation. | |
Investigators suspect he was granted a deal in return for his support of Nicolas Sarkozy. | |
Earlier this month, a French court ruled that Mr Tapie was not entitled to any compensation for that sale and should pay back the €400m with interest. | |
Five-day deadline | |
France's Court of Justice of the Republic (CJR) decided that Ms Lagarde should be tried on the charge of "negligence by a person in position of public authority" over the compensation case, iTele TV channel and the Mediapart website reported on Thursday. | |
A court spokesman later confirmed the decision. | |
French media said the CJR investigation magistrates declined to follow the recommendation of another court which last year decided not to pursue the case. | |
"It's incomprehensible," Ms Lagarde's lawyer Yves Repiquet told iTele. "I will recommend Mrs Lagarde appeal against this decision." | |
A spokesman for France's attorney general said Ms Lagarde would have five days to appeal, once the court decision is made public on Friday or Monday. | |
Meanwhile, IMF spokesman Gerry Rice said the organisation - which represents 188 member nations - "continues to express its confidence in the managing director's ability to effectively carry out her duties," AFP reports. | |
Ms Lagarde, 59, replaced Dominique Strauss-Kahn as IMF managing director in 2011. | |
Mr Strauss-Kahn - also a former French minister - resigned following his arrest in New York on charges of sexual assault that were later dropped. |