International Monetary Fund (IMF) Managing Director Christine Lagarde was put under investigation for authorizing the payment of €403 million ($434 million at the current exchange rate) in an out-of-court settlement to businessman Bernard Tapie, according to French media.

International Monetary Fund (IMF) Managing Director Christine Lagarde is due to stand trial over her alleged role in a corruption scheme when she was France’s finance minister, local media reported Thursday.

The compensation was awarded to the friend of former French President Nicolas Sarkozy to settle Tapie’s 2008 lawsuit against a state-owned bank.

The businessman claimed the Credit Lyonnais bank defrauded him by intentionally undervaluing his company.

The International Monetary Fund’s (IMF) board of directors is confident its Managing Director Christine Lagarde will be able to work effectively despite the French court order for the chief to face trial, IMF Communications Director Gerry Rice said in a statement on Thursday.

“The Executive Board continues to express its confidence in the Managing Director’s ability to effectively carry out her duties,” Rice said.

The communications director noted that it would be inappropriate for the IMF to comment on a case presented by the French judiciary, adding that the board will be briefed on the matter.