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TAXING ISSUES: SLOC POSSIBLY BEING INVESTIGATED FOR GIFTS

          The money given to relatives of IOC members that the
     SLOC characterized as "scholarships" was listed in federal
     tax returns as expenses "incurred in the bid committee's
     core function -- pursuit of the Winter Games," according to
     Mike Gorrell of the SALT LAKE TRIBUNE, who writes that IRS
     forms "have a specific line" where scholarships "can be
     accounted for."  Listed expenditures on the three returns of
     the SLOC bid committee ending in '94-95, the year UT was
     awarded the 2002 Games, contains expenses covering
     "International Olympic Fees" and "Protocol" worth $219,800
     and $33,598, respectively.  UT Sen. John Valentine: "The
     instructions are pretty explicit.  You should check 'yes' if
     giving a scholarship rather than consolidating charitable
     expenses under your core function" (S.L. TRIBUNE, 12/18). 
     UT industrialist Jon Huntsman, who severed his ties to the
     SLOC bid committee after it failed to land the '98 Games,
     said that the bid process was "out of control almost from
     the very beginning."  Huntsman: "We were sending out
     reasonably inexperienced people with large amounts of cash
     in their pocket to try to figure out ways to attract people
     to Utah" (SALT LAKE TRIBUNE, 12/18).  Jack Kelly, consultant
     to the Houston group seeking the 2012 Games: "When you've
     lost by two votes (in the past), who wouldn't do what they
     did?" (CHICAGO TRIBUNE, 12/18).  Former SLOC President Tom
     Welch said that visiting IOC members were given presents,
     including Jazz tickets, in their successful attempt at
     landing the Games.  Longman also writes that "one issue
     certain to be investigated" is the year-long employment of
     Sibusiso Sibandze, son of Swaziland IOC member David
     Sikhulumi Sibandze, at Salt Lake's City Hall in '93 and '94
     (N.Y. TIMES, 12/18).  Salt Lake Councilperson Deeda Seed:
     "It's questionable.  It sounds like a conflict of interest"
     (S.L. TRIBUNE, 12/18).  Though a "formal investigation has
     not been launched," U.S. AG Janet Reno said that allegations
     against the SLOC are "under review" (S.L. TRIBUNE, 12/18). 
          NAMING NAMES: In Toronto, Infantry & Starkman write
     that IOC board member Marc Hodler "identified" souvenir
     manufacturer Mahmoud El Farnawani, who has worked on four
     winning Olympic bids, as "an agent who promises to deliver
     votes" to bidding cities.  El Farnawani was paid US$58,000
     by SLOC as a marketing consultant from July '94 to June '95,
     when UT was awarded the 2002 Games (TORONTO STAR, 12/18).  
          OLYMPIC NOTES: Paris announced that it will bid to host
     the 2008 Summer Olympics, joining seven other cities seeking
     the Games (AP, 12/18)....The Seattle Olympic Bid Committee
     "withdrew its candidacy" for the 2012 Summer games due to
     "lack of civic support" (AP, 12/18)....President of the
     Swedish Bid Committee Christer Persson said that he wanted
     Salt Lake City to "reimburse the expenses of their rival
     cities if the group is penalized" by the IOC.  Persson: "In
     some ways, we spent our money in vain" (N.Y. TIMES, 12/18).

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