IMF former Boss Sex scandal collapsing

THE sexual assault case against Dominique Strauss-Kahn appears on the verge of collapse with prosecutors expected to tell a New York court of their doubts about the credibility of his accuser.

Speculation in New York yesterday that the charges against the former chief of the International Monetary Fund could be dropped came after a report said investigators had unearthed details about the alleged victim's background that could damage her credibility. Lawyers for Mr Strauss-Kahn were to ask for his bail conditions to be eased, given fresh disclosures about the hotel maid, 32, who accused him of attacking her in his luxury suite in May.

Although forensic tests found unambiguous evidence of a sexual encounter between Mr Strauss-Kahn and the Guinean woman, prosecutors have become increasingly sceptical about her account and what she had told them about herself.

The discoveries include issues stemming from her application for asylum and possible links to criminal activities such as drug dealing and money laundering.

Since her allegation on May 14, the woman had repeatedly lied, a law enforcement official told The New York Times, which said senior prosecutors and Mr Strauss-Kahn's lawyers were discussing whether to dismiss the felony charges.

The former French finance minister, 62, has always maintained his innocence.

He relinquished his post at the IMF after he was charged with a criminal sexual act, attempted rape and unlawful imprisonment. He was replaced this week by the French finance minister, Christine Lagarde.

Under relaxed bail conditions Mr Strauss-Kahn is expected to be allowed to travel freely in the US but not abroad. He has been confined to a Manhattan apartment while awaiting trial. He originally posted a $US6 million ($5.6 million) cash bail and bond.

Mr Strauss-Kahn's lawyers have previously indicated they would be challenging the credibility of his accuser as a key part of his defence, claiming in a letter to New York's district attorney to have uncovered information that would ''gravely undermine'' her credibility.

But it was the prosecution that brought matters to light.

Law enforcement officials told The New York Times the maid had a telephone discussion with a convicted drug dealer within a day of the alleged assault in which she discussed the possible benefits of pressing charges against Mr Strauss-Kahn.

Prosecutors have found the woman received $US100,000 in her bank accounts in recent years from the drug dealer and others. And she had multiple bank accounts. Her application for asylum included mention of a previous rape and was full of inconsistencies.

Mr Strauss-Kahn, who was arrested soon after boarding a plane for Paris, was accused of attacking the maid when she went to clean his $US3000-a-night hotel suite.

She said Mr Strauss-Kahn dragged her down a hallway to a bathroom where he tried to pull down her pantyhose and forced her to perform oral sex before she broke free. Mr Strauss-Kahn's lawyers have said the encounter was not forcible.

Observers said prosecutors could try to charge Mr Strauss-Kahn with a misdemeanour but his lawyers were certain to oppose the move.


Source: The Sydney Morning Herald