IMF Chief Lagarde Convicted of Negligence

(CN) – Christine Lagarde, the managing director of the International Monetary Fund, was found guilty on Monday of charges related to the misuse of public funds when she was France’s finance minister — but hours later, she received a vote of confidence from IMF board which decided to retain her as chief.

The Court of Justice of the Republic ruled that her negligence while servicing as finance minister allowed for the misappropriation of funds by other people, but it said it will not sentence her to any jail time and she will not have a criminal record.

The verdict is likely to unsettle the IMF, where Lagarde’s second five-year term as its chief is to being in February.

The case revolves around a €403 million ($425 million) arbitration deal given to tycoon Bernard Tapie in 2008 over the botched sale of sportswear maker Adidas in the 1990s.

The amount prompted indignation.

Civil courts have since quashed the unusually generous award, declared the arbitration process and deal fraudulent and ordered Tapie to pay the money back.

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