Paris: Christine Lagarde, the managing director of the International Monetary Fund (IMF), was found guilty on Monday of criminal charges linked to the misuse of public funds during her time as France's finance minister, a verdict that could force her out of her post.
Lagarde, who began her second five-year term at the IMF in February, will not face any jail time, the judge said. The scandal has overshadowed her work at the fund, to which she was appointed in 2011 after Dominique Strauss-Kahn resigned as managing director when he was accused of having sexually assaulted a maid in a New York City hotel.
More World News Videos
- Video duration
- 00:56
IMF chief Lagarde convicted, but not ...
IMF chief Lagarde convicted, but not punished
French judges have found IMF chief Christine Lagarde guilty of negligence for failing to challenge a 400 million euro state arbitration payout to a business tycoon in 2008 when she was French finance minister.
Up Next
Viral message: Arab Israeli newscaster calls Aleppo a 'holocaust'
- Video duration
- 02:22
- Video duration
- 02:22
Viral message: Arab Israeli newscaster ...
Viral message: Arab Israeli newscaster calls Aleppo a 'holocaust'
Israeli broadcaster Lucy Aharish switched from Hebrew to English during an evening broadcast of her show last week to deliver a scathing message to viewers around the world.
Up Next
Who was the Turkish assassin?
- Video duration
- 01:19
- Video duration
- 01:19
Who was the Turkish assassin?
Who was the Turkish assassin?
The man was captured on video when he shot dead Russia's ambassador to Turkey.
Up Next
Berlin Christmas market 'attack'
- Video duration
- 00:56
- Video duration
- 00:56
Berlin Christmas market 'attack'
Berlin Christmas market 'attack'
Twelve people are dead and at least 50 injured when a truck ploughed into a crowded Christmas market in Berlin, which the White House has called an 'apparent terrorist attack'.
Up Next
Trump cruises to Electoral College victory
- Video duration
- 01:29
- Video duration
- 01:29
Trump cruises to Electoral College victory
Trump cruises to Electoral College victory
There were many protesters as Donald Trump wins the Electoral College vote ensuring that the billionaire will become America's 45th president.
Up Next
Trump gets electoral votes in states he won
- Video duration
- 02:11
- Video duration
- 02:11
Trump gets electoral votes in states he ...
Trump gets electoral votes in states he won
State by State, Donald Trump has been getting the support of electors Monday in all of the states where he won the presidential race, despite a last-ditch effort by Trump opponents to get electors to vote another way.
Up Next
Truck ploughs into Berlin Christmas market
- Video duration
- 00:35
- Video duration
- 00:35
Truck ploughs into Berlin Christmas market
Truck ploughs into Berlin Christmas market
At least nine people have died with many more injured after a truck crashed into a crowded Christmas market in Berlin on Monday.
Up Next
How Syria's Twitter star escaped Aleppo
- Video duration
- 02:00
- Video duration
- 02:00
How Syria's Twitter star escaped Aleppo
How Syria's Twitter star escaped Aleppo
Seven-year-old Bana Alabed and her mother Fatemah, who tweeted about living conditions under the Syrian government's assault on eastern Aleppo, have evacuated to the Aleppo countryside as part of a deal reached last week to return the city to government control.
IMF chief Lagarde convicted, but not punished
French judges have found IMF chief Christine Lagarde guilty of negligence for failing to challenge a 400 million euro state arbitration payout to a business tycoon in 2008 when she was French finance minister.
The move is likely to destabilise the IMF as it faces a host of thorny issues, including questions over its participation in a multibillion-dollar bailout for Greece and uncertainty about the role of the US in the organisation once Donald Trump becomes president in January.
The verdict was a surprise, after the prosecutor in the trial said last week the case against her was "very weak" and did not appear to be enough to win a conviction. It is a theme prosecutors have previously repeated.
The trial revived concerns in France about high-level corruption, shining a spotlight on intimate ties between politicians and businesspeople, and on the large sums that are sometimes used to grease the country's political wheels.
The case against Lagarde centred on Bernard Tapie, a former entertainer and owner of Adidas who had previously been jailed on corruption charges. Tapie accused the lender Crédit Lyonnais, in which the French state had a stake at the time, of cheating him when it oversaw the sale of his share of the sportswear empire in 1993. Years of costly legal battles ensued.
In 2007, Lagarde sent the dispute to a three-person private arbitration authority that awarded Tapie more than €400 million in damages and interest, to be paid by the state.
Her critics said that decision was politically tainted, and she was charged with negligence for allowing the arbitration and for then declining to appeal the panel's verdict.
The trial against Lagarde was just one facet of the scandal – many people associated with it are under investigation for accusations as varied as embezzlement and organised fraud.
New York Times