IMF chief Christine lagarde was ordered on Friday to stand trial in France over a massive state payout to a colourful tycoon when she was French Economy Minister, dealing a setback to her stellar career.
France’s highest appeals court dismissed lagarde’s challenge against the decision to try her for negligence in her handling of a dispute between a state-owned bank and businessman Bernard Tapie. Tapie walked away with a staggering 404 million euros ($445 million) in compensation in 2008 after lagarde ordered the long-running row over the sale of sports gear giant Adidas to be resolved by arbitration.
Ruling means the 60-year-old IMF chief will go before a special tribunal that hears cases against Government Ministers accused of wrongdoing in the discharge of their duties. The ruling is a blow to the IMF boss, who has long been touted as a potential future French President.