The case of sexual assault against the former IMF boss, Mr Dominique Strauss-Kahn, appears to be collapsing on questions over the credibility of the accusing housemaid, whose version prosecutors are finding hard to believe.

Though forensic tests did “unambiguous evidence” of a sexual encounter between Mr Strauss-Kahn and the woman, prosecutors do not believe much of what the accuser has told them about the circumstances or about herself, the New York Times said in a report today.

Quoting law enforcement officials, the paper said holes have developed in the credibility of the housekeeper who charged that the French politician had attacked her in his Manhattan hotel suite before rushing out in a hurry.

“Since her initial allegation on May 14, the accuser has repeatedly lied,” one of the law enforcement officials was quoted as saying.

Issues related to the 32-year-old Guinean housekeeper’s the asylum application and her possible links to criminal activities including drug dealing and money laundering have raised doubts over her credibility, an official said.

Mr Strauss-Kahn was to appear again in a court later in the day to ease the strict bail conditions imposed on him. The paper said he could be freed from house arrest.

In fact, senior prosecutors and his lawyers have met to discuss whether to dismiss the felony charges.

Mr Strauss-Kahn was pulled out of a Paris-bound flight in May and arrested over the allegations that almost ruptured his political prospects. The French politician was considered a strong contender for presidency before the charges appeared forcing him to quit as the Managing Director of the International Monetary Fund.

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Published on July 1, 2011