IMF Lagarde found guilty of negligence but is allowed to go Free Video
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Lagarde found guilty of negligence but is allowed to go Free
Today is Wednesday 21st December 2016 and we are briefly summarising the outcome of the prosecution of IMF Head Christine Lagarde.
A week long proceeding carried out by France’s Court of Justice of the Republic concluded late on Monday. This special tribunal for ministers centred on IMF Head Mrs Christine Lagarde's decision in 2007, when she was the French Finance Minister, to allow a dispute over business tycoon Bernard Tapie's sale of the Adidas sports brand to Credit Lyonnais Bank, to be resolved by a rarely-used private arbitration panel, instead of through the courts.
60-year-old Lagarde was accused of wrongdoing on two counts: agreeing to the arbitration and failing to challenge the subsequent €404 million award. In its verdict, the court of three professional magistrates, six senators and six MPs, found no fault in Mrs Lagarde's decision to launch the arbitration procedure. But it found her guilty of "negligence" in choosing not to appeal the arbitration panel's ruling.
The Court decided not to punish Mrs Lagarde nor give her a criminal record, (as she could have gone to jail for up to 12 months and face a 15,000 Euro fine) on the grounds of her "international reputation" and the fact that at the time she was instrumental in handling "the international financial crisis".
It did note however her inaction allowed Mr Tapie and his wife to pocket 45 million euros in "moral damages" for alleged emotional harm - a sum included in the final arbitration award. Some suspected Lagarde of not acting and appealing the compensation, as Mr Tapie had supported President Sarkozy successful election campaign and that this was payback time.
The IMF board praised the “wide respect and trust” for Mrs Lagarde’s leadership as it expressed its “full confidence” in her ability to continue in the role at the upper echelons of international finance.
What do you think? Should public service exonerate you from the letter of the Law or is this once again a case of one law for the elite and another law for the masses? We’d be interested to hear your comments.
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