IMF chief cleared of power abuse

BY LESLEY WROUGHTON

WASHINGTON

Oct. 26: The International Monetary Fund’s board on Saturday cleared managing director Dominique Strauss-Kahn of harassment, favouritism and abuse of power following an inquiry into his affair with a subordinate.

While the board stopped short of any type of disciplinary action, its leader, Shakour Shaalan, acknowledged there was concern among female staff about Mr Strauss-Kahn’s behaviour.

Mr Shaalan said he had warned Mr Strauss-Kahn against any further improper conduct. "The executive board noted that the incident was regrettable and reflected a serious error of judgment on the part of the managing director," the IMF’s board said in a statement.

The investigation by an outside lawyer into allegations of improper conduct by Strauss-Kahn found that his affair with Piroska Nagy, who worked in the IMF’s Africa department as a senior economist until taking a buyout in August, had been consensual.

In a separate statement, Mr Strauss-Kahn said he considered it a serious error of judgment. "I very much regret the incident and I accept responsibility for it," said Mr Strauss-Kahn who is married to French television personality Anne Sinclair.

The board sought to deal with the investigation quickly so as not to distract the IMF from its role in dealing with the global financial crisis that has sent markets plunging on fears that the world economy is in for a long and deep recession.

"Our conclusion was that this will in no way affect the effectiveness of the managing director in the difficult period ahead," said Mr Shaalan, who represents Egypt and other Arab countries on the board.

—Reuters