Lagarde faces negligence probe
August 27, 2014![IMF chief Lagarde](https://static.dw.com/image/17881300_800.webp)
International Monetary Fund Managing Director Christine Lagarde told AFP news agency Wednesday she'd been put under formal investigation. Her announcement came shortly after she had been grilled for a fourth time by magistrates about her role in a long-running political fraud case. The probe hinges on an alleged compensation payment.
The magistrate's decision indicates they've found signs of wrongdoing, but it does not necessarily mean Lagarde will face a full blown trial.
The case relates to her handling of a 400-million-euro ($527-million) state compensation payout to disgraced French tycoon Bernard Tapie in 2008 when she was French Finance Minister.
Ghosts of the past haunt
The payout was connected to a dispute between the businessman and partly state-owned bank Credit Lyonnais over the 1993 sale of his stake in sports equipment group Adidas.
Lagarde had referred the dispute to a three-member arbitration panel that ruled in favor of Tapie, who is suspected of receiving favorable treatment in return for supporting ex-President Nicolas Sarkozy in the 2007 election.
Lagarde told AFP she would appeal Wednesday's decision and would not resign her position as IMF chief over the investigation.
hg/bw (AFP, Reuters)