IMF chief faces probe for affair with staffer
The investigation comes as several countries turn to the IMF for financing to help ease the effects of the worst global financial crisis since the Great Depression and politicians consider the fund’s role in preventing future crises.
The IMF said in a statement the investigation was ordered by Shakour Shaalan, head of its 24-member board, after the matter came to his attention during the summer. It is being handled by an outside law firm and is to be completed by the end of October.
“All allegations, particularly those involving senior management, are taken extremely seriously,” an IMF spokesman said. “The dean has asked external counsel to conduct an independent investigation and determine the validity of the allegations,” the spokesman added.
Strauss-Kahn, a former French finance minister who came to the job just under a year ago, said he was cooperating with the investigation.
“With my full support the IMF is examining an incident which occurred in my private life in January 2008,” Strauss-Kahn said in a statement. “I have cooperated and am continuing to cooperate with outside counsel to the Fund concerning the matter.”
“At no time did I abuse my position as the fund’s managing director,” he said, “I look forward to the report of outside counsel.”
The Wall Street Journal said the investigation involves Piroska Nagy, a senior economist at the IMF’s Africa division until August. She resigned after the fund offered staff buyout packages and is now working for the London-based European Bank for Reconstruction and Development, a regional bank.
The newspaper said Strauss-Kahn approached Nagy, who is married, in December 2007 and the two exchanged e-mails which led to the relationship early this year.
It said Nagy’s husband, Mario Blejer, formerly governor of the Central Bank of Argentina and adviser to the Bank of London, found e-mail evidence of the affair when it ended.—Reuters