(MENAFN - Khaleej Times) The source said Lagarde who earlier was questioned by magistrates in Paris under her existing status as a witness considered their decision to investigate her for alleged negligence was unfounded and would appeal it.
Christine Lagarde gestures while speaking.- AP
IMF chief Christine Lagarde has been placed under formal investigation by French magistrates on Wednesday for her alleged role in a long-running political fraud case a source close to the former French finance minister said.
The source said Lagarde who earlier was questioned by magistrates in Paris under her existing status as a witness considered their decision to investigate her for alleged “negligence” was unfounded and would appeal it. A French judiciarysource also confirmed the step.
In French law magistrates place someone under formal investigation when they believe there are indications of wrongdoing but that does not always lead to a trial.
The inquiry into tycoon Bernard Tapie has embroiled several of former president Nicolas Sarkozy’s cabinet members including Lagarde.
Tapie - who supported Sarkozy in the last two elections - was awarded 403 million euros in a 2008 arbitration payment under Sarkozy’s presidency to settle a dispute with the now defunct state-owned bank Credit Lyonnais over a 1993 share sale. Lagarde was finance minister at the time. For more news from Khaleej Times follow us on Facebook at facebook.com/khaleejtimes and on Twitter at khaleejtimes Follow khaleejtimes ->