This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.nytimes.com/2015/12/18/world/europe/imf-chief-faces-trial-in-case-dating-to-time-as-french-finance-minister.html
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| I.M.F. Chief Faces Trial in Case Dating to Time as French Finance Minister | I.M.F. Chief Faces Trial in Case Dating to Time as French Finance Minister |
| (4 days later) | |
| PARIS — A special French court on Thursday ordered Christine Lagarde, the managing director of the International Monetary Fund, to stand trial on charges of negligence that date back to when she served as France’s finance minister, the second time in five years that a top French I.M.F. official has faced legal scrutiny. | |
| The order by the French Court of Justice could mean that Ms. Lagarde will be embroiled in a potentially lengthy process to address accusations that she acted negligently while overseeing a politically charged 2007 arbitration case, when the state awarded a payout of 404 million euros, about $441 million at current exchange rates, to a flamboyant French tycoon, Bernard Tapie. | The order by the French Court of Justice could mean that Ms. Lagarde will be embroiled in a potentially lengthy process to address accusations that she acted negligently while overseeing a politically charged 2007 arbitration case, when the state awarded a payout of 404 million euros, about $441 million at current exchange rates, to a flamboyant French tycoon, Bernard Tapie. |
| Ms. Lagarde’s lawyer has been quoted in the French media as saying that he will recommend that she appeal the special court’s decision to put her on trial. The court is convened only to try ministers and subministers for wrongdoing involving their jobs. | Ms. Lagarde’s lawyer has been quoted in the French media as saying that he will recommend that she appeal the special court’s decision to put her on trial. The court is convened only to try ministers and subministers for wrongdoing involving their jobs. |
| The I.M.F. did not comment on whether Ms. Lagarde, who is the first woman to lead it, would be required to recuse herself from her post during the trial. | The I.M.F. did not comment on whether Ms. Lagarde, who is the first woman to lead it, would be required to recuse herself from her post during the trial. |
| But the I.M.F. board was aware of Ms. Lagarde’s legal entanglement when she was appointed in June 2011 to take the helm from Dominique Strauss-Kahn, another former French finance minister seen as a contender for the French presidency before he was forced to resign his post at the I.M.F. amid a sex scandal. In a statement Thursday, the board expressed “confidence” in her “ability to effectively carry out her duties.” | But the I.M.F. board was aware of Ms. Lagarde’s legal entanglement when she was appointed in June 2011 to take the helm from Dominique Strauss-Kahn, another former French finance minister seen as a contender for the French presidency before he was forced to resign his post at the I.M.F. amid a sex scandal. In a statement Thursday, the board expressed “confidence” in her “ability to effectively carry out her duties.” |
| “This is a big deal,” said Christopher Mesnooh, a partner at the legal firm of Fieldfisher in Paris. “She’s one of the world’s most influential women. The real problem is that this is going to dredge up a never-ending political and economic saga.” | |
| If Ms. Lagarde is not cleared, he added, “the first consequence” would be her status at the I.M.F. | If Ms. Lagarde is not cleared, he added, “the first consequence” would be her status at the I.M.F. |
| Ms. Lagarde, has repeatedly defended her role in the case, a long-running French legal soap opera that has lasted more than 20 years and exposed ties between Mr. Tapie and high-profile French polticial figures, including former President Nicolas Sarkozy, who was in office when the arbitration went forward. | Ms. Lagarde, has repeatedly defended her role in the case, a long-running French legal soap opera that has lasted more than 20 years and exposed ties between Mr. Tapie and high-profile French polticial figures, including former President Nicolas Sarkozy, who was in office when the arbitration went forward. |
| On Thursday, Ms. Lagarde’s French counsel, Yves Repiquet, said in a statement that she had “always acted in this affair in the interest of the state and in respect of the law.” Ms. Lagarde is the former — and first female — chairwoman of one of the world’s largest law firms, Baker & McKenzie, which is based in Chicago. The statement said she believed that “no charge can be attributed” to her. | On Thursday, Ms. Lagarde’s French counsel, Yves Repiquet, said in a statement that she had “always acted in this affair in the interest of the state and in respect of the law.” Ms. Lagarde is the former — and first female — chairwoman of one of the world’s largest law firms, Baker & McKenzie, which is based in Chicago. The statement said she believed that “no charge can be attributed” to her. |
| Ms. Lagarde’s attorneys have five days after she is formally notified to register an appeal. The notification may come later than Thursday. “It’s incomprehensible,” her lawyer, Mr. Repiquet, told I-Télé television. | Ms. Lagarde’s attorneys have five days after she is formally notified to register an appeal. The notification may come later than Thursday. “It’s incomprehensible,” her lawyer, Mr. Repiquet, told I-Télé television. |
| In 2007, Ms. Lagarde, who was the French finance minister under Mr. Sarkozy, ordered that a dispute between Mr. Tapie, a longtime friend of Mr. Sarkozy’s, and Crédit Lyonnais, a state-owned bank, be referred to an arbitration panel. The panel awarded Mr. Tapie the settlement. | In 2007, Ms. Lagarde, who was the French finance minister under Mr. Sarkozy, ordered that a dispute between Mr. Tapie, a longtime friend of Mr. Sarkozy’s, and Crédit Lyonnais, a state-owned bank, be referred to an arbitration panel. The panel awarded Mr. Tapie the settlement. |
| Mr. Tapie, a former head of the Adidas sports empire and an ex-Socialist party minister who switched political loyalties to support Mr. Sarkozy’s presidential campaign that same year, had accused Crédit Lyonnais in 1993 of bilking him of vast sums when it oversaw the sale of his stake in Adidas. | Mr. Tapie, a former head of the Adidas sports empire and an ex-Socialist party minister who switched political loyalties to support Mr. Sarkozy’s presidential campaign that same year, had accused Crédit Lyonnais in 1993 of bilking him of vast sums when it oversaw the sale of his stake in Adidas. |
| The scandal-ridden bank was effectively put into state hands, and when Mr. Strauss-Kahn was France’s finance minister in 1999, he ruled that the state was responsible for dealing with Mr. Tapie’s claim. | The scandal-ridden bank was effectively put into state hands, and when Mr. Strauss-Kahn was France’s finance minister in 1999, he ruled that the state was responsible for dealing with Mr. Tapie’s claim. |
| There were suspicions that it was actually Mr. Sarkozy, then the president, who recommended to Jean-Louis Borloo, his finance minister at the time, that the case go to arbitration. However, before that happened, Ms. Lagarde took over from Mr. Borloo, and it was on her watch that the case was sent to an arbitration panel. | There were suspicions that it was actually Mr. Sarkozy, then the president, who recommended to Jean-Louis Borloo, his finance minister at the time, that the case go to arbitration. However, before that happened, Ms. Lagarde took over from Mr. Borloo, and it was on her watch that the case was sent to an arbitration panel. |
| The French public was stunned when the arbitration panel awarded Mr. Tapie such a large amount. Soon after, Ms. Lagarde came under scrutiny for her role, after she declined recommendations from advisers to appeal the decision. | The French public was stunned when the arbitration panel awarded Mr. Tapie such a large amount. Soon after, Ms. Lagarde came under scrutiny for her role, after she declined recommendations from advisers to appeal the decision. |
| She was eventually investigated for “abuse of authority” for failing to appeal the payout, but that charge was dropped and she is now being charged with the lesser “negligence by a governmental official,” which is punishable by one year in prison and a fine of €15,000, about $16,400. | She was eventually investigated for “abuse of authority” for failing to appeal the payout, but that charge was dropped and she is now being charged with the lesser “negligence by a governmental official,” which is punishable by one year in prison and a fine of €15,000, about $16,400. |
| The case languished after Ms. Lagarde took over the I.M.F. until early this month, when a Paris appeals court overrode the arbitration panel’s decision to award Mr. Tapie the settlement. Instead, the court ruled that Crédit Lyonnais did not cheat Mr. Tapie, and ordered the magnate to pay the state back the entire sum, which he said would drive him into bankruptcy. | The case languished after Ms. Lagarde took over the I.M.F. until early this month, when a Paris appeals court overrode the arbitration panel’s decision to award Mr. Tapie the settlement. Instead, the court ruled that Crédit Lyonnais did not cheat Mr. Tapie, and ordered the magnate to pay the state back the entire sum, which he said would drive him into bankruptcy. |
| The body that issued the order Thursday for Ms. Lagarde to face trial — the Court of Justice of the Republic — is a rarely used body that tries only cases involving ministers and junior ministers for crimes related to their positions in office. The prime minister can also be tried by the court. | The body that issued the order Thursday for Ms. Lagarde to face trial — the Court of Justice of the Republic — is a rarely used body that tries only cases involving ministers and junior ministers for crimes related to their positions in office. The prime minister can also be tried by the court. |
| It is made up of 12 members of the French Parliament and three magistrates appointed by France’s highest court, the Court of Cassation. The cases they take often have a political tinge since they are often brought against former ministers when a new government has taken office. | It is made up of 12 members of the French Parliament and three magistrates appointed by France’s highest court, the Court of Cassation. The cases they take often have a political tinge since they are often brought against former ministers when a new government has taken office. |
| They rarely hear cases, but when they do they almost always involve high profile matters. There have been only four cases since their founding in 1993 in which ministers were judged. | They rarely hear cases, but when they do they almost always involve high profile matters. There have been only four cases since their founding in 1993 in which ministers were judged. |
| In a 1999 case Laurent Fabius, who is currently France’s foreign minister, was tried along with two other ministers for manslaughter after a branch of the Health Ministry was found to have been giving blood transfusions contaminated with H.I.V. to hemophiliacs. He was acquitted as was one other minister while a third was found guilty. | In a 1999 case Laurent Fabius, who is currently France’s foreign minister, was tried along with two other ministers for manslaughter after a branch of the Health Ministry was found to have been giving blood transfusions contaminated with H.I.V. to hemophiliacs. He was acquitted as was one other minister while a third was found guilty. |
| A 2010 case involved a former Interior minister, Charles Pasqua, who was convicted of embezzlement, but was given a suspended sentence. | A 2010 case involved a former Interior minister, Charles Pasqua, who was convicted of embezzlement, but was given a suspended sentence. |
| On Thursday, the current French finance minister, Michel Sapin, said in New York, where he was visiting the United Nations, that Ms. Lagarde was “presumed innocent.” He added that he saw no reason for her to stand back from the I.M.F. helm. | On Thursday, the current French finance minister, Michel Sapin, said in New York, where he was visiting the United Nations, that Ms. Lagarde was “presumed innocent.” He added that he saw no reason for her to stand back from the I.M.F. helm. |
| “The case had been dragging on for 20 years,” said Mr. Mesnooh, the lawyer at Fieldfisher. “Her intention was to do arbitration to put this behind the French state. But now it seems to have caught up with her as well.” |