France: Investigators Tie I.M.F. Chief to Fraud Inquiry Involving Sarkozy

http://www.nytimes.com/2013/05/25/world/europe/france-investigators-tie-imf-chief-to-fraud-inquiry-involving-sarkozy.html

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Christine Lagarde, the managing director of the International Monetary Fund, was made an “assisted witness” on Friday in an investigation by French judges into allegations of possible fraud and misuse of public funds that date from her time as finance minister. As an assisted witness, Ms. Lagarde has not been placed under formal investigation but is considered to have been closely implicated in the case, which involves a half-billion-dollar state payout to Bernard Tapie, a businessman and politician who once served time in prison for his involvement in the fixing of soccer matches. Ms. Lagarde oversaw that payout in 2007 and 2008, while serving as finance minister under President Nicolas Sarkozy, whose candidacy Mr. Tapie had supported. The board of the International Monetary Fund has expressed its confidence in Ms. Lagarde. In a statement Friday, she said she had “always acted in the best public interest and in accordance with the law.”