Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

French authorities raid IMF chief Christine Lagarde's home in 'embezzlement' probe

Investigation concerns the payment of almost €400m in state compensation to a disgraced French tycoon

John Lichfield
Wednesday 20 March 2013 14:40 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

French magistates and anti-fraud police have raided the Paris home of the International Monetary Foundation (IMF) chief, Christine Lagarde, as part of an investigation into alleged misuse of public office and "embezzlement" when she was French finance minister in 2008.

Ms Lagarde, 57, was not in France at the time.

Her lawyer, Yves Repiquet, said that he believed that the search would “help to reveal the truth and exonerate my client from all criminal responsibility”.

The investigation concerns the payment of almost €400m in state compensation to a disgraced French tycoon, Bernard Tapie, in 2008. Three French magistrates are investigating allegations that Ms Lagarde acted improperly when she created an independent panel to end a legal dispute over the sale by a state-owned bank of Mr Tapie’s holding in the Adidas sportswear company, in 1993.

Mr Tapie was jailed in 1997 after being found guilty of a number of offences including the fixing of a football match involving the club that he owned at the time, Olympique Marseille. Once a left-wing activist and minister, Mr Tapie switched sides after he left prison to back Nicolas Sarkozy in the 2007 presidential election.

The magistrates are investigating allegations that Ms Lagarde, as finance minister, intervened improperly to ensure that Mr Tapie received high compensation for what he claimed was incompetent handling of the Adidas sale by Credit Lyonnais. In 2011, Ms Lagarde was appointed as head of the IMF after rape allegations (since dropped) forced the resignation of another former French finance minister, Dominique Strauss-Kahn.

Ms Lagarde is expected to be questioned by investigating magistrates in the near future.

It is alleged that Mr Tapie was given a sweetheart deal in return for his high-profile support for Mr Sarkozy in the 2007 presidential election. An anonymous letter on the case, sent on finance ministry notepaper, suggests that the real responsibility for the decision which rebuilt Mr Tapie’s fortune lay with President Sarkozy.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in