IMF’s Lagarde guilty in French tycoon payout trial, but no punishment for her | world-news | Hindustan Times
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IMF’s Lagarde guilty in French tycoon payout trial, but no punishment for her

French judges on Monday found IMF chief Christine Lagarde guilty of negligence for failing to challenge a 400 million euro ($417 million) state arbitration payout to a business tycoon in 2008 when she was French finance minister.

world Updated: Dec 19, 2016 20:33 IST
In this December 12 file picture, International Monetary Fund chief Christine Lagarde smiles as she arrives at the special Paris court, France.
In this December 12 file picture, International Monetary Fund chief Christine Lagarde smiles as she arrives at the special Paris court, France. (AP)

French judges on Monday found IMF chief Christine Lagarde guilty of negligence for failing to challenge a 400 million euro ($417 million) state arbitration payout to a business tycoon in 2008 when she was French finance minister.

Despite the ruling the judges did not hand down any sentence in the case on her decision to allow the rare out-of-court arbitration payment. She has denied the negligence charges.

Her lawyer said immediately after the ruling that his team would look into appealing the decision.

The ruling risks triggering a new leadership crisis at the International Monetary Fund after Lagarde’s predecessor Dominique Strauss Khan resigned in 2011 over a sex assault scandal.

The IMF’s executive board is expected to meet shortly to consider the negligence verdict issued against Lagarde, spokesperson Gerry Rice said.

“The Executive Board has met on previous occasions to consider developments related to the legal proceedings in France,” Rice said in a brief statement. “It is expected that the Board will meet again shortly to consider the most recent developments.”