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German FA fined in World Cup tax evasion case

German FA fined in World Cup tax evasion case

BERLIN: A German court on Wednesday fined the domestic football association €130,000 in a tax evasion case linked to suspicious payments around the 2006 World Cup.
At the centre of the case was a payment of 6.7 million euros to the organising committee for the tournament in Germany.
In its annual accounts, the DFB claimed the money was to cover the costs of a World Cup gala, but the event never took place.
According to the Frankfurt regional court, the funds were used by the late 2006 World Cup president and German footballing legend Franz Beckenbauer to bribe members of FIFA's finance committee.
DFB officials intended the payments to secure a €170-million grant from the global footballing body.
The money was paid by the organising committee via FIFA to Robert Louis-Dreyfus, the former CEO of German sportswear giant Adidas.
Louis-Dreyfus had allegedly already paid the same amount three years earlier to members of the finance committee headed by Qatari Mohamed bin Hammam.
DFB bosses had "handled undeclared payments and supported FIFA's corrupt system", Judge Eva-Marie Distler said.
Three DFB officials were directly implicated in the case but none remained in the dock at the end of the trial.
Proceedings against Horst Schmidt, and former DFB presidents Wolfgang Niersbach and Theo Zwanziger, were dropped after they paid fines ranging from €10,000 to €65,000.
Beckenbauer died last year before the trial began. - AFP

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