IMF chief Christine Lagarde has been put under formal investigation by French magistrates for alleged negligence in a political fraud affair dating from 2008 when she was finance minister.
Lagarde was questioned by magistrates in Paris this week for a fourth time under her existing status as a witness in the long-running saga over allegations that tycoon Bernard Tapie won a large arbitration payout due to his political connections.
“After three years of procedure, the sole surviving allegation is that through inadvertence or inattention I may have failed to intervene to block the arbitration that brought to an end the longstanding Tapie litigation,” she said in a statement on Wednesday.
“I have instructed my lawyer to appeal this decision, which is without merit.”
Under French law, magistrates place a person under formal investigation when they believe there are indications of wrongdoing, but that does not always lead to a trial.
Lagarde’s lawyer, Yves Repiquet, told Reuters he would personally appeal the magistrates’ decision. That means Lagarde would not have to return to Paris in the meantime, allowing her to continue her duties as managing director of the International Monetary Fund uninterrupted.
“She is now on her way back to Washington and will, of course, brief the (IMF) board as soon as possible,” IMF spokesman Gerry Rice said.
“Until then, we have no further comment.”
