Let’s talk about corruption… again

The last time we checked in with Sepp Blatter and associates, Sepp was jetting off to the Caribbean, while the rest of the world sat wringing it’s hands in nervous anticipation of Brazil meeting stadium deadlines for next year’s World Cup. But before Sepp catches a flight back to Zurich, he might want to stop for a chat with the fine folks from the CONCACAF region.

In a report just released by CONCACAFs Integrity Committee, the result of a multi-year investigation into alleged corruption, former CONCACAF President Jack Warner and former Secretary General Chuck Blazer were definitively shown to have defrauded and misled both FIFA and CONCACAF for millions of dollars. From using FIFA funds to pay off personal credit cards, to siphoning portions of CONCACAF sponsorships as personal commissions, the corruption was surprisingly unrestrained. Here are a few highlights taken directly from the report:

“Accounting records show that, from 1996 to 2011, Blazer received more than $20.6 million in compensation from FIFA.”
“Blazer had administrative rights to the accounting system, and frequently made entries in the system by using his personal or admin login.”
“Accounting for CONCACAF operations in Trinidad and Tobago…was controlled personally by Jack Warner.”
“A review of the evidence showed that the auditor used by CONCACAF…was not independent and in fact possessed clear conflicts of interest.”

While Warner and Blazer are obviously at fault for their actions, one has to question the system that enabled their abuse. With no real accounting standards nor verification system in place for either FIFA or CONCACAF, Warner and Blazer were able to fully embrace corrupt practices. Further, accounting was placed in the charge of Warner and Blazer themselves, and when financial statements were presented to the CONCACAF Executive Committee, the Committee quickly accepted them without investigation. Perhaps worse, is FIFA’s seeming incompetence in regards to finances. The report makes mention of an incident in which FIFA requested a bank account number to route funds to CONCACAF. Chuck Blazer provided a personal account, to which FIFA promptly routed the funds. Without financial standards in place from either CONCACAF or FIFA, the potential for corruption was overwhelming

Of course, while it’s heartening that Warner and Blazer have been permanently barred from positions within football, has any progress been made if the same system which enabled their abuse remains? [Posted by Maxi]

If you’re interested, you can read the report for yourself by visiting here.