The head of the International Monetary Fund, Christine Lagarde, could face a severe punishment: as much as one year in jail if found convicted.
The IMF managing director is to stand a special tribunal in France for her decision to back a hefty payment to tycoon Bernard Tapie. She is accused of negligence in public office in terms of misuse of public funds. In 2007, Christine Lagarde was in charge of the arbitration board who held an inquiry into the case of selling Adidas shares to the French public bank Credit Lyonnais. Bernard Tapie, the owner of the stake, claimed that the bank undervalued his stake in Adidas as the shares were sold later at a twice inflated price. As a result, the arbitration judges appointed by Lagarde ruled in Tapie’s favor and the tycoon was awarded a compensation of EUR 403 million. Being France’s finance minister at the time, Lagarde ordered to settle the payout from the public funds.
Such an offense carries a fine of up to EUR 15,000 or even a sentence of one year in jail.
