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French court delays decision on IMF chief Lagarde

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Press Trust of India Paris
Last Updated : Jan 20 2013 | 10:58 PM IST

A special French court today delayed a decision again on whether to investigate new International Monetary Fund (IMF) chief Christine Lagarde's role in securing a $406 million arbitration deal for a controversial businessman.

Lagarde took the helm of the IMF this week after her predecessor, Dominique Strauss-Kahn, quit to face charges he tried to rape a New York hotel maid.

Lagarde was France's finance minister at the time of the 2008 arbitration deal for magnate Bernard Tapie. Tapie won what critics called a too-generous private settlement with a French state-owned bank over the mishandled sale of sportswear maker Adidas in the 1990s.

A French prosecutor wants an investigation into Lagarde's role in the deal, saying he suspects she overstepped her authority.

A commission at the Court of Justice of the Republic convened Friday to decide whether to launch an investigation. The court, a special body that handles cases involving government ministers, delayed its decision until August 4 because one of the judges on the panel recused himself.

The reason for the judge's decision was not immediately clear. It was the second delay. Lagarde said on France-24 television this week that whether the French court decides to investigate, "I have the exact same confidence, and same sense of calm."

The IMF management was aware of the possible investigation when it chose Lagarde as its new chief last month. Any investigation, if launched, would take months, if not years, and might not necessarily result in a trial.

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First Published: Jul 08 2011 | 3:17 PM IST

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