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Christine Lagarde avoids sentence despite guilty verdict in negligence trial Christine Lagarde avoids jail despite guilty verdict in negligence trial
(35 minutes later)
Christine Lagarde, the head of the International Monetary Fund, has been found guilty of negligence in approving a massive payout of taxpayers’ money to controversial French businessman Bernard Tapie, but avoided a jail sentence. Christine Lagarde has been found guilty of negligence in approving a massive payout of taxpayers’ money to controversial French businessman Bernard Tapie but avoided a jail sentence.
A French court convicted the former government minister, who had faced a €15,000 fine and up to a year in jail, but decided she should not be punished and that the conviction would not constitute a criminal record. A French court convicted the head of the International Monetary Fund and former government minister, who had faced a €15,000 fine and up to a year in jail. But it decided she should not be punished and that the conviction would not constitute a criminal record.
The verdict came as a surprise as even the public prosecutor had admitted the evidence against Lagarde was “weak” during a five day trial last week. Jean-Claude Marin told the court Lagarde’s actions fell into the category of politics and not criminality and called for her to be acquitted. The verdict came as a surprise as even the public prosecutor had admitted the evidence against Lagarde was “weak” during a five-day trial last week. Jean-Claude Marin told the court Lagarde’s actions fell into the category of politics and not criminality and called for her to be acquitted.
Lagarde, who has always argued she did nothing wrong and acted “in the public interest”, was not present for the judgment. Her lawyer Patrick Maisonneuve said she had flown back to Washington DC, where the IMF is based.Lagarde, who has always argued she did nothing wrong and acted “in the public interest”, was not present for the judgment. Her lawyer Patrick Maisonneuve said she had flown back to Washington DC, where the IMF is based.
Lagarde had appeared before the Cour de Justice de la République, a special tribunal set up to judge ministers and public officials for alleged crimes committed while in office. It is made up of three judges and 12 politicians from the French houses of parliament.Lagarde had appeared before the Cour de Justice de la République, a special tribunal set up to judge ministers and public officials for alleged crimes committed while in office. It is made up of three judges and 12 politicians from the French houses of parliament.
It was only the fifth time the court had sat and its judgements cannot be appealed against. It was only the fifth time the court had sat and its judgments cannot be appealed against.
The Tapie case has rumbled on for more than two decades, since 1993 when the businessman sold his majority shares in the sportswear company Adidas to Crédit Lyonnais, a bank at that time part owned by the French state, to avoid a conflict of interest when he took up a government post. The Tapie case has rumbled on since 1993 when the businessman sold his majority share in the sportswear company Adidas to Crédit Lyonnais, a bank then part-owned by the French state, to avoid a conflict of interest when he took up a government post.
Tapie, 72, accused the bank, which later sold the shares at a higher price, of defrauding him by undervaluing his investment.Tapie, 72, accused the bank, which later sold the shares at a higher price, of defrauding him by undervaluing his investment.
Lagarde, 60, was the finance minister under Nicolas Sarkozy between 2007 and 2011, when she became head of the IMF - replacing her disgraced compatriot Dominique Strauss-Kahn, who had been put on trial for attacking a New York hotel maid. She referred the case to a private arbitration panel, which awarded Tapie €400m (£335m). She was accused of “negligence with public money” for having paid up and not contested the award, which experts had advised against. She denied any wrongdoing. Lagarde, 60, was the finance minister under Nicolas Sarkozy between 2007 and 2011, when she became head of the IMF - replacing her disgraced compatriot Dominique Strauss-Kahn, who had been put on trial for attacking a New York hotel maid. She referred the case to a private arbitration panel, which awarded Tapie €400m (£335m). She was accused of “negligence with public money” for having paid up and not contested the award, which experts had advised against.
In turn, the minister claimed she had not seen all documents suggesting the payout should not be made. Six others, including her former chief of staff Stéphane Richard, now head of telecoms giant Orange, are being investigated for fraud in the case. All have denied acting illegally. She denied any wrongdoing and claimed she had not seen all documents suggesting the payout should not be made. Six others, including her former chief of staff Stéphane Richard, now head of telecoms giant Orange, are being investigated for fraud. All have denied acting illegally.
Tapie has since been ordered to pay back the €400m, but is appealing against the decision. Tapie has since been ordered to pay back the €400m but is appealing against the decision.
Detectives have spent years trying to establish if the award was given to Tapie under Sarkozy’s orders in return for the businessman’s support in his successful 2007 presidential campaign.Detectives have spent years trying to establish if the award was given to Tapie under Sarkozy’s orders in return for the businessman’s support in his successful 2007 presidential campaign.