IMF chief Christine Lagarde has been put under formal investigation by French Court for ‘negligence’ in a political fraud affair during her tenure has Finance Minister under Former President Sarkozy.
The inquiry which dates back to 2008,is related to the 403 million euro settlement awarded to Tycoon Bernard Tapie a supporter of then President Sarkozy in a dispute with now defunct state owned bank Credit Lyonnais.
The investigation which doesn’t necessarily lead to charges or trial under French Law, however means prosecutors have implicating evidence against the accused.
Lagarde who this week was questioned by the French Court denies any wrong doing and tells
BFMTV “I have asked my lawyer to use all recourse against this decision which I consider to be completely unfounded,” “I am returning to work in Washington this afternoon.”
If found guilty of ‘negligence’ she could face a maximum of one year in prison and a 20,000 dollar fine.