Christine Lagarde’s future as chief executive of the IMF was brought into question yesterday as she was hauled in front of a Paris Court over a €403 million (£345 million), public payment she made to the toxic tycoon Bernard Tapie as the French Government’s Finance Minister, in 2007.
Written by Chris White
Lagarde 57, whose real name is Christine Lallouette, was scrutinised over her role in a massive government payment to disgraced, Left wing French businessman Bernard Tapie, who has in the past specialised in the recovery of bankrupt businesses and in the illegal fixing of football matches.
The current French Finance Minister Pierre Moscovici (who like Sarkozy is of similar ethnic extraction), insists that Lagarde retains “the full confidence of the French authorities and myself.” However, the French Government spokeswoman and Minister for “Women’s Rights” Najat Vallaud-Belkacem, – a Feminist of Franco-Moroccan background, – said in response to yesterday’s questions: “I tend to think that if she is charged, the IMF will without doubt ask her to quit her post.”
Were Lagarde to be forced into resignation over the affair, it would be reminiscent of the disgraceful demise of the last IMF chief Dominique Strauss-Khan (born to Gilbert Strauss-Kahn, a Jewish tax lawyer and member of the Grand Orient de France), after so called “allegations” of raping a West African hotel maid in New York which were later bought off for an undisclosed settlement, led to his speedy arrest and public parading on worldwide television in handcuffs, only days after announcing a rather unpopular re-capitalization drive…
The massive payout is believed by some to have been in return for financial support given by Tapie to former French President Sarkozy (whose real Jewish-Hungarian name is ‘Nagy-Bocsa’), in order to help him win France’s 2007 presidential elections.
It is believed that the payout cleared Tapie’s massive debts and tax liabilities and actually left him with a credit balance of up to €40 million.
At this stage no formal charges have been made against Lagarde in relation to the payment however, she risks being placed under a formal investigation for her decision as a Finance Minister to use arbitration in the creation of an out-of-court settlement between the state and a private businessman.
Under French law “serious or consistent evidence” of wrongdoing is first necessary in order launch an official police investigation.
Miss Lagarde denies having acted under orders from the then President Sarkozy (aka ‘Nagy-Bocsa’), with her defenders suggesting political motives for any accusations of impropriety.
Yesterday the IMF issued a brief statement saying that it continues in its “confidence in the managing director’s ability to effectively carry out her duties.”
Lagarde (aka ‘Christine Lallouette’) entered into politics in the 1970’s when after graduating in Social Law from the University Maryland, she undertook an internship with the then US Senator William Cohen who went on to be Secretary of Defence under the Clinton Administration.