French prosecutors launched an investigation into Hugh Bailey, the head of General Electric Co.'s operations in France, over a potential conflict of interest when he joined the industrial conglomerate, according to various media reports.
The probe stems from a complaint filed by lawmaker Delphine Batho, who questioned the legality of GE's hiring of Bailey in 2017 after he served as an adviser to President Emmanuel Macron, who was then France's economy minister, The Associated Press reported.
Batho said French civil servants are required by law to wait three years before joining a company with which they had previous business dealings, according to a report by Reuters. She alleged that Bailey was in charge of handing out €70 million in French state aid to GE in 2016 for the purchase of turbines for a government project.
GE called the allegations against Bailey "totally unfounded," saying his appointment to GE France was authorized by a government ethics committee.
"We remain at the disposal of the authorities on this matter," a GE spokesperson said in a statement.
Bailey's lawyer, Benjamin Van Gaver, said the investigation will give the GE executive "the opportunity to provide all the necessary elements to the authorities to firmly refute the allegations against him."
