ZUG, Switzerland, March 11 (Reuters) - Prosecutors investigating the collapse of FIFA's former marketing partner ISL presented evidence on Tuesday of payments made from a secret company bank account to FIFA executive committee member Nicolas Leoz.
Leoz, president of the South American Football Confederation
(CSF) since 1986, was named among a long list of beneficiaries
alleged to have received payment via a Liechtenstein bank
account from a company wholly owned by ISL but never declared in
the company structure of its holding firm ISMM.
The payments were set out in a 228-page prosecution document
handed to journalists on the opening day of a trial over ISL's
spectacular collapse in 2001.
Six former ISL and ISMM executives are facing charges
ranging from embezzlement to the falsification of documents with
prosecutors calling for prison sentences of up to four and a
half years.
Leoz has not been charged with any wrongdoing and the
prosecution papers gave no indication as to the purpose of the
payments made to the 79-year-old Paraguayan in January and May
2000, totalling $130,0000.
The prosecution file argues that the overall purpose of the
Liechtenstein account was to bribe sporting officials in an
effort to secure lucrative contracts for ISL.
In total the prosecution says that more than 18 million
Swiss francs ($17.72 million) was paid out 'to people involved
either directly or indirectly in contracts entered into by the
ISMM group.'
Former ISMM general director Jean-Marie Weber, one of the
six accused, is himself listed as the recipient of 190,000 Swiss
francs although the prosecution said it was unable to establish
for certain whether Weber had personally profited from the
transactions or simply been a go-between.
Weber told the court on Tuesday that he was still in
occasional contact with FIFA president Sepp Blatter 'on a purely
social basis' but no longer had any business dealings with world
soccer's governing body.
He said he rejected all the charges against him and intended
to exercise his right to silence for the remainder of the trial.
The Zug-based firm collapsed in May 2001 with estimated
debts or around $300 million.
ISL managed FIFA's marketing and television rights for more
than 20 years. Former partners also included the International
Olympic Committee and the men's tennis ATP Tour, with which ISL
signed a $1.2 billion marketing deal in 1999.
The bribery allegations are expected to play only a minor
role in the overall trial which is more focused on accusations
of criminal mismanagement in the build-up and aftermath of the
company's collapse.
All six defendants have entered not guilty pleas.
