Chief executive officer of Orange, Stephane Richard, was confirmed Monday by the board of the mobile telecommunications operator, supported by the representatives of the French government. He is under formal investigation for his role in the 2008 dispute with the Credit Lyonnais bank. An arbitration process ended up with the French government paying €420 million ($555 million) to Bernard Tapie, a businessman close to the former president Nicolas Sarkozy. Usually a formal investigation is the first step toward prosecution.
The decision, supported by many company employees and trade unions, was welcomed by financial markets, as Orange shares on Paris exchange market rose by 3.08%.
In a meeting that lasted less than two hours, the board of directors “decided to reassert its full confidence in Stéphane Richard and his ability to effectively meet the numerous challenges facing Orange,” a statement from Orange reads. The statement continues: “In particular, the board considers that the legal measures affecting Stéphane Richard do not impede his ability to fully and effectively lead Orange.”
President Francois Hollande said on Sunday evening that the state, main shareholder in the group with a 27 percent stake, asked its three representatives in the Orange board to vote in favor of maintaining Stephane Richard at the helm.
Stephane Richard, former chief of staff of Christine Lagarde, currently head of the International Monetary Fund, is being investigated for his role in setting up an arbitration panel in the Tapie case. He might get up to 10 years in prison and a fine of €1 million
Christine Lagarde, who as Minister of Economy agreed to resolve the dispute through arbitration, was placed in the same file, with a status of assisted witness, intermediate between the status of witness and defendant.
Stephane Richard was detained in police custody for 48 hours last week for questioning on misuse of public funds and then placed under formal investigation for organized fraud.
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