IMF chief Christine Lagarde will go on trial in France in December over a massive state payout to tycoon Bernard Tapie when she was finance minister, the court hearing the case announced Monday. Lagarde, 60, will be tried for negligence by the Court of Justice of the Republic, a tribunal that hears cases against ministers accused of wrongdoing in the discharge of their duties. The International Monetary Fund boss, who has repeatedly protested her innocence, faces up to a year in prison and a fine of 15,000 euros ($16,850) if found guilty. The case threatens to overshadow Lagardes otherwise stellar career, which has seen the former corporate lawyer progress from a top firm to the French finance ministry and her current role as one of the worlds most powerful women. It also threatens the credibility of the Washington-based IMF, whose last three managing directors have faced trial. The Funds head of communications Gerry Rice said in a statement sent to AFP on Monday that the executive board continues to express its confidence in the managing directors ability to effectively carry out her duties. The accusations stem from Lagardes handling of a dispute with Tapie, a colourful businessman and former minister who claimed a state bank defrauded him in its sale of sportswear giant Adidas. Tapie owned Adidas between 1990 and 1993 but lost control of it after he went bankrupt. He also owned the Marseille football team. On becoming finance minister in 2007 under the newly elected president Nicolas Sarkozy, Lagarde ordered that Tapies long-running battle with the state be resolved by arbitration. The decision was hugely costly, with Tapie initially walking away with a staggering 404 million euros ($445 million) in compensation in 2008. After a lengthy court battle, he has since been ordered to repay it. Investigators suspect the arbitration process was rigged in favour of Tapie, who had supported Sarkozy in his 2007 election campaign. Lagarde, who served as finance minister from 2007 until 2011, has always insisted she acted in Frances best interests. Although she is not accused of personally profiting from the payment, she has been criticised for failing to challenge the award. Investigating magistrates accuse her of serious negligence on the part of a minister tasked with conducting affairs of state, saying Lagardes actions led to a gross misuse of public money. Others face fraud charges over the affair, including Tapie, his lawyer, one of the arbitrators, Lagardes former chief of staff in the finance ministry and the current head of the telecom group Orange, Stephane Richard. Agencies **************************
