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SBD Global/October 25, 2013/International Football

Brazilian Prosecutors Sue FIFA For World Cup Public Funds Reimbursement

Brazilian prosecutors are "suing FIFA for reimbursement of public funds spent on temporary structures in stadiums that will host next year’s World Cup," according to the AP. Prosecutors’ offices in five Brazilian states said in statements posted on their web pages that "they're seeking reimbursement" totaling $106M. They "contend that the money was spent on temporary structures in or near stadiums during June’s Confederations Cup." The prosecutors said that because the structures "didn’t serve the public interest, the Brazilian taxpayers shouldn’t be asked to pay for them." They added that the temporary structures were "set up exclusively for the benefit of FIFA’s sponsors, broadcasting services and guests." FIFA said in a statement on Wednesday that the payment for the "complementary structures" is "contractually the responsibility of stadium owners and not FIFA" (AP, 10/23). BLOOMBERG's Tariq Panja said that federal prosecutors in Brazil have "sought an injunction to block the use of public funds to pay for temporary infrastructure at stadiums that will host games" at the World Cup. The measure could save almost $546M in "public money." The federal prosecutor's office said that "structures such as tents and cabling, along with communication equipment for broadcasters, offer no long term benefit to society and should be paid for by FIFA" and local organizers of the event (BLOOMBERG, 10/24).
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