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    IMF investigates chief Strauss-Kahn over relationship with employee

    HotNewsTurkey with wires
    19.10.2008 - 10:14 | Son Güncelleme:

    International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn is being investigated for possible abuse of his position in connection with a sexual relationship with a subordinate, the fund said.

    The IMF, one of the main players in coordinating global attempts to tamp down the explosive financial crisis, acknowledged Saturday it had hired a law firm to conduct the investigation, expected to be completed by the end of the month.

     

    "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 e-mailed on Saturday by fund spokesman William Murray. 

     

    "At no time did I abuse my position as the Fund's Managing Director."

     

    Murray declined to confirm details reported overnight in The Wall Street Journal, which said the investigation focuses on Strauss-Kahn's relationship with Hungarian-born Piroska Nagy, a married former senior official in the IMF's Africa department.

     

    The investigation may distract Strauss-Kahn and the Washington-based agency's management as they attempt to address the global financial crisis. It takes place 15 months after World Bank President Paul Wolfowitz quit less than halfway through his five-year term amid a furor over securing a pay raise for his companion.

     

    Wolfowitz resigned after an internal World Bank report found that he had violated bank rules in arranging a generous promotion and pay package for his girlfriend shortly after he assumed the bank presidency in 2005.

     

    The incident is horrible timing for the IMF, which has been in the global spotlight in the past weeks as governments grapple with the extent of the worst financial meltdown since the Great Depression of the 1930s.

     

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