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| Christine Lagarde convicted: IMF head found guilty of criminal charges over massive government payout | Christine Lagarde convicted: IMF head found guilty of criminal charges over massive government payout |
| (about 3 hours later) | |
| International Monetary Fund chief Christine Lagarde has been convicted over her role in a controversial €400m (£355m) payment to a businessman. | International Monetary Fund chief Christine Lagarde has been convicted over her role in a controversial €400m (£355m) payment to a businessman. |
| French judges found Ms Lagarde guilty of negligence for failing to challenge the state arbitration payout to the friend of former French President Nicolas Sarkozy. | French judges found Ms Lagarde guilty of negligence for failing to challenge the state arbitration payout to the friend of former French President Nicolas Sarkozy. |
| The 60-year-old, following a week-long trial in Paris, was not given any sentence and will not be punished. | The 60-year-old, following a week-long trial in Paris, was not given any sentence and will not be punished. |
| The Court of Justice of the Republic, a special tribunal for ministers, could have given Ms Lagarde up to one-year in prison and a €13,000 fine. | The Court of Justice of the Republic, a special tribunal for ministers, could have given Ms Lagarde up to one-year in prison and a €13,000 fine. |
| The ruling, however, risks triggering a new leadership crisis at the IMF after Ms Lagarde’s predecessor Dominique Strauss-Kahn resigned in 2011 over a sex assault scandal. | |
| Ms Lagarde, who was French finance minister at the time of the payment in 2008, has denied the negligence charges. | Ms Lagarde, who was French finance minister at the time of the payment in 2008, has denied the negligence charges. |
| Her lawyer said immediately after the ruling that his team would look into appealing the decision. | Her lawyer said immediately after the ruling that his team would look into appealing the decision. |
| On Friday she told the court: “These five days [of trial] put an end to a five-year ordeal for my partner, my sons, my brothers, who are here in this courtroom. | |
| “In this case, like in all the other cases, I acted with trust and with a clear conscience with the only intention of defending the public interest.” | |
| The case surrounded the decision to allow a dispute over Bernard Tapie’s sale of Adidas to Crédit Lyonnais bank to be resolved by a rarely-used private arbitration panel – instead of the courts. | |
| Investigators suspected the payment to 73-year-old Mr Tapie was the result of a behind closed doors agreement with then-President Mr Sarkozy in return for election support. | Investigators suspected the payment to 73-year-old Mr Tapie was the result of a behind closed doors agreement with then-President Mr Sarkozy in return for election support. |
| IMF managing director Ms Lagarde was suspected of rubber stamping a deal to effectively buy off the business magnate with taxpayers’ money. | |
| Civil courts have since quashed the unusually generous award, declared the arbitration process and deal fraudulent, and ordered Mr Tapie to pay the money back. | Civil courts have since quashed the unusually generous award, declared the arbitration process and deal fraudulent, and ordered Mr Tapie to pay the money back. |
| Today’s result was unexpected. | |
| Even the trial’s chief prosecutor Jean-Claude Marin said the accusation was “very weak” and warned of confusion between “criminal negligence” and a “bad political decision”. | |
| At the start of proceedings, the £355,000-a-year boss, of the global Washington-based institution, said: “I would like to show you that I am in no way guilty of negligence, but rather that I acted in good faith with only the public interest in mind. | At the start of proceedings, the £355,000-a-year boss, of the global Washington-based institution, said: “I would like to show you that I am in no way guilty of negligence, but rather that I acted in good faith with only the public interest in mind. |
| “Was I negligent? No. And I will strive to convince you allegation by allegation.” | |
| Her lawyer Patrick Maisonneuve said on Europe-1 radio that Ms Lagarde was just following instructions from her administration and did not have time to read all 15 years of legal files on the case. | Her lawyer Patrick Maisonneuve said on Europe-1 radio that Ms Lagarde was just following instructions from her administration and did not have time to read all 15 years of legal files on the case. |
| Ms Lagarde was only the fifth to be held before the Cour de Justice de la République since its inception in 1993. | |
| IMF spokesman Gerry Rice said after Monday’s verdict that its executive board would meet soon “to consider the most recent developments”. | |
| Another former IMF head, Rodrigo Rato of Spain, is standing trial on charges of misusing funds when he was boss of the Spanish lender Bankia. | Another former IMF head, Rodrigo Rato of Spain, is standing trial on charges of misusing funds when he was boss of the Spanish lender Bankia. |