IMF’s governing board, under the chairmanship of its longest serving member and Dean of the Board – Mr. A. Shakour Shaalan, has unanimously decided, after full examination of the facts, to exonerate Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund [IMF], from allegations of improper conduct and abuse of his position as head of the organization that oversees the global financial system.
Although the board recognized the fact that Mr. Dominique Strauss-Kahn did have a consensual relationship with subordinate Ms. Piroska Nagy, it concluded that there was no harassment, favoritism, or any other abuse of authority by the Managing Director. The board, according to an IMF statement, said its conclusion was based upon reviewing the findings of an independent inquiry that was carried out by external law firm Morgan Lewis & Bockius.
The outside law firm looked if there was any evidence that Mr. Strauss-Kahn had abused his power in starting a relationship with Ms. Nagy, and whether or not he had either favored or punished her as a result of the relationship he initiated. The law firm found that he had done neither.
However, the 24-member board noted that the incident was regrettable and reflected a serious error of judgment, on the part of the IMF’s chief. The Board also stressed the fact that the personal conduct of the Managing Director sets an important tone for the institution and, as such, “must be beyond reproach at all times”.
Mr. Dominique Strauss-Kahn has acknowledged the affair, which occurred early this year, calling it a regrettable mistake for which he has apologized.
“I very much regret the incident and I accept responsibility for it”, said Strauss-Kahn. “I have apologized for it to the Board, to the staff of the IMF and to my family.” [WSJ]
The executive board said it now considers the matter closed, and reiterated that its conclusion would in no way affect the effectiveness of the Managing Director in the very challenging and difficult period ahead.