Christine Lagarde's trial for 'negligence' over alleged misuse of public money starts

Christine Lagarde, the managing director of the International Monetary Fund is to go on trial on Monday, accused of “negligence” over the alleged misuse of public money when she was finance minister in former French president Nicolas Sarkozy's government.

The case relates to a €405m out-of-court settlement France made in 2008 to Bernard Tapie, a former owner of a football club and who supported Sarkozy’s 2007 election campaign.

Lagarde signed off on the payment to Tapie who won a case against state-owned bank Crédit Lyonnais in 2008 claiming the bank had undervalued his stake in sportswear giant Adidas.

If convicted, Lagarde could face a year in prison, a fine of €15,000 and would have to resign from her post at the IMF. She has not been accused of obtaining any personal benefit from the settlement and denies any wrongdoing.

The case is to be heard at the Cour de Justice de la Republique, composed of six judges and 24 members of parliament.

Last year, a court ruled that Tapie should not have been compensated and he should reimburse the state. He is to appeal and could face charges for fraud.

Lagarde was appointed head of the IMF in 2011, replacing Dominique Strauss-Kahn who was caught up in a sex scandal, and the Washington-based organisation reappointed her in February for a second term despite the ongoing case.