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CONCACAF Lays Out Plan For Reform Following Involvement In FIFA Scandal

CONCACAF announced measures on Monday meant to "curb corruption and improve transparency following its involvement in a scandal" that has engulfed FIFA, according to Brian Homewood of REUTERS. CONCACAF President Jeffrey Webb, his aide Costas Takkas and exec committee member Eduardo Li were among seven people arrested in Zurich on May 27. They "remain in custody in Switzerland." CONCACAF, whose remits also covers the Caribbean, said that the reforms, "which were drawn up by a three-man committee, would be implemented immediately." They include term limits on all members of the exec committee, including the president, "and publication of their salaries." CONCACAF would "also introduce a requirement" that independent members with no connection with football "also sit on the executive committee." In addition, "outside consultants will be hired to audit commercial partners and review internal controls, and a whistleblowers' hotline will be set up" (REUTERS, 7/6). The BBC's Dan Roan reported although this reform framework has been approved by CONCACAF's exec committee, "and some measures will be implemented immediately, others (like the introduction of independent Exco members) will require the consent of the full 41-member congress." But CONCACAF's special committee said, "This framework attempts to address deficiencies in the governance and operations of Concacaf that have put its reputation, finances and mission at risk." For many, the notion that CONCACAF "may be in a position to provide leadership just weeks after the crisis began is laughable." After all, the confederation has had "plenty of opportunities to reform itself in the past but the cronyism has continued." It seems CONCACAF had "little choice but to clean up its act." There were also reports that the Bank of Nova Scotia warned that it would "withhold funds from a major sponsorship deal unless the confederation changed its ways" (BBC, 7/6). In N.Y., Sam Borden wrote many of the proposals are similar -- "if not identical -- to some that critics of FIFA have often suggested will be necessary" if football's world governing body "ever wants to enact meaningful change." However, these proposals only apply to CONCACAF as a body "and not to any of its member associations." In other words, an organization like the United States Soccer Federation -- which has been led since '06 by President Sunil Gulati -- would not have to impose the term limits proposed for CONCACAF. The introduction of similar requirements for member associations "may be a more realistic prospect in the future." For now, CONCACAF is "simply focused on fixing itself." Law firm Sidley Austin Head of Corporate Practice Sam Gandhi, whose firm is advising CONCACAF on matters including governance, said, "People are right to be skeptical. We know we're not asking people for a second chance; we're asking them for a third chance. So we get it." The proposals also would overhaul how CONCACAF chooses its financial partners, "covering matters such as broadcasting rights and bids to host tournaments." Those are "two areas in particular that federal investigators have alleged are rife with corruption" (N.Y. TIMES, 7/6). ESPN's Jeff Carlisle reported the organization plans to institute a system "in which credit and background checks will be conducted on all vendors, and will reserve the right to impose audit rights" on those vendors to make sure they comply with bid process and "covenants regarding bribery and compliance with a code of ethics." A whistleblower hotline will be implemented and administered by CONCACAF's audit committee. With regard to transparency, the reform framework states that "all financial statements and the CONCACAF budget will be made public, as will all officer and ExCo member compensation." CONCACAF said that the charters of the audit, compensation, governance, and the special committee "will also be made public on the CONCACAF website, as will the agenda of ExCo meetings" (ESPN, 7/6).

CHANGING THE CULTURE: In N.Y., Matthew Futterman wrote this is the "second time in two years that lawyers from Sidley Austin have recommended changes" at CONCACAF. Gandhi said in the past the organization had relied "too heavily on certain individuals to lead reform." Now, he said, "the time has arrived for structural changes that should also ultimately lead to a new group of individuals leading the organization." The "real challenge will be changing the organization's culture," Gandhi said, and proving to sponsors that CONCACAF is "serious about running itself lawfully." Gandhi: "If we don't have sponsors we don't have a Gold Cup. If we don't have integrity we don't have fans" (WALL STREET JOURNAL, 7/6).

WEBB FACES MORE CHARGES: REUTERS' Simon Evans reported Webb, "already facing charges" in FIFA's global bribery scandal, "has now been charged in a healthcare fraud case in his native Cayman Islands, local media reported." Cayman 27 TV reported Cayman authorities have issued an arrest warrant for Webb and are "expected to seek his extradition." The report said that Webb faces two charges of conspiracy to defraud and "one charge of breach of trust, as well as 'conspiracy to convert criminal property'" (REUTERS, 7/4).

OFFICIALS BOOED: Evans reported in a separate piece FIFA officials "were booed by the crowd before the trophy presentation" at the Women's World Cup final, which was won 5-2 by the U.S, despite FIFA President Sepp Blatter staying away from Canada during the tournament. The stadium announcer asked the crowd to welcome FIFA "dignitaries" on to the field and the group of around 10, led by FIFA VP and Confederation of African Football President Issa Hayatou, "were greeted by loud boos" (REUTERS, 7/5).

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