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French court questions IMF chief Christine Lagarde | French court questions IMF chief Christine Lagarde |
(35 minutes later) | |
IMF chief Christine Lagarde has arrived at a court in Paris for questioning over a payout to a controversial tycoon during her time as finance minister. | IMF chief Christine Lagarde has arrived at a court in Paris for questioning over a payout to a controversial tycoon during her time as finance minister. |
She is being asked to explain her handling of a row in 2007 which resulted in some 400m euros (£342m; $516m) being paid to Bernard Tapie. | She is being asked to explain her handling of a row in 2007 which resulted in some 400m euros (£342m; $516m) being paid to Bernard Tapie. |
She is appearing before the Court of Justice of the Republic (CJR), which investigates ministerial misconduct. | She is appearing before the Court of Justice of the Republic (CJR), which investigates ministerial misconduct. |
The IMF chief insists the award was the best solution at the time. | |
"It's a pleasure to see you," a smiling Ms Lagarde told reporters upon arrival. | |
She could be placed under formal investigation for the decision to use arbitration, against advice from senior advisers, to settle a long-running court battle between the state and Mr Tapie, a supporter of the then French President, Nicolas Sarkozy. | She could be placed under formal investigation for the decision to use arbitration, against advice from senior advisers, to settle a long-running court battle between the state and Mr Tapie, a supporter of the then French President, Nicolas Sarkozy. |
The case stretches back to 1993 when Mr Tapie, a colourful, controversial character in the French business world, sold his stake in sports company Adidas to Credit Lyonnais, the BBC's Christian Fraser reports from Paris. | The case stretches back to 1993 when Mr Tapie, a colourful, controversial character in the French business world, sold his stake in sports company Adidas to Credit Lyonnais, the BBC's Christian Fraser reports from Paris. |
Soon after the bank sold on that stake for a much bigger profit, Mr Tapie claimed they had defrauded him. | Soon after the bank sold on that stake for a much bigger profit, Mr Tapie claimed they had defrauded him. |
In 2007, President Sarkozy suggested the finance ministry - which had been overseeing the dispute and was led by Ms Lagarde - should move the case to arbitration. | In 2007, President Sarkozy suggested the finance ministry - which had been overseeing the dispute and was led by Ms Lagarde - should move the case to arbitration. |
Mr Tapie won a much bigger payout than he might have expected in court. | |
Ms Lagarde is not accused of profiting from the payout but she is being questioned over the misuse of public funds. | Ms Lagarde is not accused of profiting from the payout but she is being questioned over the misuse of public funds. |
If she is placed under formal investigation it is of course embarrassing, our correspondent adds. It is a step closer to trial but it does not necessarily mean the case will end up in court, he says. | If she is placed under formal investigation it is of course embarrassing, our correspondent adds. It is a step closer to trial but it does not necessarily mean the case will end up in court, he says. |