Frankfurt tax officers "have raided the offices of Germany’s DFB football association as part of an investigation into alleged tax evasion linked to the awarding of the 2006 World Cup," according to James Shotter of the FINANCIAL TIMES. Frankfurt prosecutors' office said that more than 50 tax officers "were involved in the raids on Tuesday morning, which also targeted the residences of one current and two former German football officials." The prosecutors said that they had opened an investigation into "suspected tax evasion in a particularly serious case" in connection with "the awarding of the 2006 World Cup and the transfer of €6.7M from the World Cup organising committee of the DFB to the world football association, Fifa."
The German football officials being investigated "are the current president of the DFB, Wolfgang Niersbach, who previously served as vice-president of the organising committee, as well as the DFB’s former president, Theo Zwanziger, and a former secretary-general, Horst Schmidt."
The three officials under investigation "could not immediately be reached for comment" (FT, 11/3). REUTERS' Andreas Kröner reported the raids focused on €6.7M the DFB transferred to FIFA in '05 -- "adding another layer to U.S. and Swiss investigations." The Frankfurt state prosecutor last month "launched a monitoring process" -- a step before a formal investigation -- into the payment.
A spokesperson said on Tuesday "any other suspicion of wrongdoing, such as bribery or corruption, would not be followed up due to the statute of limitations." Now the investigation "will just focus on tax implications, which must be examined within 10 years." The investigation stems from a Der Spiegel magazine report in October that suggested "a slush fund had been used to buy votes for the German bid in 2000." The DFB said that it was "cooperating with the prosecutor's tax investigation." The payment "is already being investigated in-house by both the DFB and FIFA" (REUTERS, 11/3). The BBC reported Niersbach "has denied the allegations, claiming instead that the sum was used to secure larger FIFA funding."
He said that the deal "was agreed at a private meeting" between suspended FIFA President Sepp Blatter and Beckenbauer (BBC, 11/3). BILD reported Frankfurt Chief Prosecutor Nadja Niesen said that the allegations "could result in a sentence between six months to 10 years, in case of a conviction." Niesen: "If there's enough evidence to confirm the accusations, we will file charges. Then the case will go to court." One investigator said that "they were looking for material that would confirm the alleged tax evasion" (BILD, 11/3).
DEMANDING ANSWERS: REUTERS' Ilona Wissenbach reported Daimler, a main sponsor of the DFB, "called for a complete clarification of tax-evasion allegations" against the federation. Daimler said, "We are monitoring the developments closely and expect a complete clarification." Daimler's Mercedes Benz passenger car unit "has been sponsoring the DFB since 1990" (REUTERS, 11/3)
