7 Jun 2016

Report says Blatter enriched himself with bonuses

6:52 am on 7 June 2016

A report says former FIFA president Sepp Blatter and two other leading officials were involved in a "coordinated attempt" to enrich themselves.

Dollar bills rain down on FIFA president Sepp Blatter, at a media conference in Zurich. A man posing as a journalist had thrown the money at him.

Dollar bills rain down on FIFA president Sepp Blatter, at a media conference in Zurich. A man posing as a journalist had thrown the money at him. Photo: Photosport

Former FIFA president Sepp Blatter and two other leading officials were involved in a "coordinated attempt" to enrich themselves through annual salary increases and World Cup bonuses.

FIFA said an internal investigation revealed that the three officials had received 117 million dollars in compensation over five years.

FIFA is attempting to recover from the worst graft scandal in its history in which 42 people, including former FIFA executive committee members, and entities have been indicted in the United States. Gianni Infantino was elected as president in February and promised to lead the FIFA into calmer waters.

The ruling body said it had shared the information about salaries with the Swiss Attorney General's office and the U.S. Department of Justice and would continue to investigate.

Blatter did not wish to comment on the allegations, his spokesman said. His U.S. lawyer also declined comment.

A person close to Kattner said that "none of the information that was published is unknown to the compensation committee", adding that the payments were in line with FIFA's compensation policy and that they had been seen by KPMG which audit FIFA's finances.

Valcke could not immediately be reached for comment.

FIFA said the investigation, conducted by its lawyers Quinn Emanuel, had revealed "evidence of breaches of fiduciary duty".

The findings were preliminary and warranted further investigation, it said.

"The evidence appears to reveal a coordinated effort by three former top officials of FIFA to enrich themselves through annual salary increases, World Cup bonuses and other incentives," said Bill Burck, a partner with Quinn Emanuel.

FIFA said that before 2013 the people who signed the contracts were "in principle" also the ones who approved them.

"They had the authority they needed, and they simply told payroll and HR (human resources), the department generally in charge for employment contracts at FIFA and which reported to Mr Kattner, how much should be paid out and to whom," said the report.

There were also questions over the compensation sub-committee which oversaw officials' compensation from 2013 onwards, the report said.

The report added that Valcke and Kattner, as senior staff members, also secured clauses in their contracts which guaranteed severance payments and indemnities even if they were terminated for just cause.

Blatter was banned for eight years, later reduced to six, by FIFA's ethics committee in December and Valcke has been banned for 12 years. Kattner was fired by FIFA on May 23.