Christine Lagarde, the International Monetary Fund’s managing director, has been found guilty of “negligence” over a huge payout to a business tycoon while she served as France’s finance minister.
However, in a boost to her hopes of keeping her post, the Court of Justice of the Republic - a special tribunal for ministers - chose not to punish her or give her a criminal record. She had faced a one-year term and a €15,000 fine.
The trial threatened to derail the stellar career of the first woman ever to become finance chief of a Group of Eight country. An IMF spokesman said that the body would meet soon to discuss the outcome.
The ruling came after a week-long trial in which she received a rough ride. Lagarde had maintained her innocence, and the prosecutor had asked for an acquittal over the “very weak” case after advising against bringing the case to court.
The 60-year-old former corporate lawyer was also accused of failing to challenge the €404 million award that emerged from the arbitration.
The court ruled that she had committed no wrongdoing in giving her green light to the arbitration, but was guilty of “negligence” in not appealing its decision. Lagarde argued in evidence on Friday she had acted in good faith in approving the payment to settle the row.
Choking back a sob, she had told the court: “These five days of hearing put an end to a five-year ordeal for my partner, my sons, my brothers, who are here in this courtroom.
The Telegraph