Friday, August 5, 2011

"Don't tell me this one is bent as well" Investigation launched into dealings of new IMF boss Christine Lagarde - 5th Aug 2011

The International Monetary Fund suffered a fresh setback today after an inquiry was launched into its new boss Christine Lagarde.

A French court ordered the investigation into her role in a huge settlement paid to a businessman friend of President Nicolas Sarkozy when she was finance minister.

It is alleged that Ms Lagarde abused her authority in 2008 by approving a £250 million payment to magnate Bernard Tapie, who supported Mr Sarkozy’s presidential campaign in 2007.

Ms Lagarde denies any wrongdoing but the probe is a major embarrassment just a month after she took over as managing director of the IMF.

The 55-year-old became the first women to head the Washington-based Fund following the resignation of Dominique Strauss-Kahn.

Mr Strauss-Kahn was forced to quit in May after he was arrested in New York and charged with the attempted rape of a hotel chambermaid.

The scandal erupted at the worst possible time for the Fund as it struggled to deal with the escalating debt crisis in the Eurozone. Read More