Christine Lagarde's conviction: Know why the IMF chief was found guilty
A French court has found IMF head Christine Lagarde guilty of negligence over a massive state payout to a tycoon when she was French finance minister but spared her a fine or prison sentence.
New Delhi/Paris: A French court has found IMF head Christine Lagarde guilty of negligence over a massive state payout to a tycoon when she was French finance minister but spared her a fine or prison sentence.
Here is a brief timeline of the trail process
In December 2015 the trail court ordered for her role in masssive state payout to French tycoon Brenard Tapie
On July 1, 2016 French prosecutors decided on trail for negligence before the Court Of Justice Of The Republic
Confirmed on appeal July 22
Why was Christine Lagarde found guilty
- A special court in Paris found against Lagarde over her handling of a dispute between the state and flamboyant businessman Bernard Tapie.
- Tapie had sold Adidas to Credit Lyonnais for the equivalent of 315.5 million euros in 1993. The bank sold it on the following year for 701 million euros, prompting claims from Tapie that he had been cheated.
- French judges found the IMF Chief guilty of negligence for failing to challenge a 400 million euro ($417 million) state arbitration payout to a business tycoon in 2008 when she was French finance minister.
- Lagarde was tried over her decision to allow the long-running dispute over Tapie`s sale of Adidas to be resolved by a private arbitration panel instead of by the courts.
- An investigation later showed the arbitration to be fraudulent.
- The court cleared her of negligence over that decision but upheld the charge over her failure to contest the staggering amount of the resulting award.