Jane Cowan reported this story on Tuesday, August 23, 2011 08:15:00

PETER CAVE: The case against former International Monetary Fund chief, Dominique Strauss-Kahn, has collapsed.



The prosecutors in New York say that while they maintain there is evidence that the banker did have consensual sex with a hotel maid, her history of lying means the case is not strong enough to proceed.



Our North America correspondent, Jane Cowan, has been following events, Jane what's happened?



JANE COWAN: Well Peter it is a stunning reversal when you consider the sensational beginning to this case. But today prosecutors have filed papers recommending that the judge drop all of the charges.



So in recommending that the case be dismissed prosecutors are saying that the nature and the number of the accuser's falsehoods, as they call them, left them unable to trust her version of events beyond a reasonable doubt and if they couldn't trust it, they couldn't then expect a jury to.



It's not exactly a surprise; prosecutors had grown increasingly concerned about the woman's credibility and reportedly didn't have enough evidence that her encounter with Strauss-Khan was forced. His lawyers had argued all along that it was consensual.



There were also, Peter, these suggestions that she lied about her background in Guinea and about what she did straight after the incident. And there was also a recording of a conversation where prosecutors said she talked about exploiting Strauss-Kahn's wealth.



So, a combination of all these things seem to have brought the case undone.



PETER CAVE: Has she had anything to say today?



JANE COWAN: Well she has in the past given interviews when it became clear the case was in trouble, but today she's said nothing. She did stand beside her lawyer, Kenneth Thompson, and he condemned prosecutors in very strong terms, saying that they were essentially denying his client her right to justice.



So let's have a listen to that.



KENNETH THOMPSON: He has not only turned his back on this innocent victim, but he has also turned his back on the forensic, medical and other physical evidence in this case.



PETER CAVE: Kenneth Thompson.



Had Dominique Strauss-Kahn himself had anything to say?



JANE COWAN: Not yet Peter. His lawyers, though, have issued a statement. They're saying that the former IMF (International Monetary Fund) chief is grateful for this decision.



After he spent almost a week behind bars and more than a month under house arrest, this could clear the way for him to return to France, you would think.



But he is still facing a civil law suit, filed by this same accuser and there are still those further sexual assault charges in France, including from the young writer who alleges that Strauss-Kahn tried to rape her in a Paris flat in 2003; which is something he also denies.



And it's unclear what all this will mean now for his political fortunes. Because, remember, he had been favoured as the next president of France.



PETER CAVE: Jane Cowan reporting there.