French Police Raid Home of IMF Boss Christine Lagarde
2013-03-20 0:00

From: The Australian

French police have raided the Paris home of IMF chief Christine Lagarde in connection with a probe into her handling of a high-profile scandal when she was a government minister.

The investigation concerns Ms Lagarde’s 2007 decision to ask an arbitration panel to rule on a dispute between disgraced tycoon Bernard Tapie and the collapsed bank Credit Lyonnais.

The arbitration resulted in Tapie being awarded around 400 million euros ($500 million) - an outcome that triggered outrage among critics who insisted the state should never have taken the risk of being forced to pay money to Tapie, a convicted criminal.

That view has been effectively endorsed by the CJR, a court established to assess potentially suspect actions by government ministers in office.

The CJR has deemed Ms Lagarde’s decision to send the Tapie case to arbitration "questionable" and suggest she was personally complicit in a process characterised by "numerous anomalies and irregularities".


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