Restitution<\/strong><\/strong><\/p>\n\n\n\n \u201cThese funds [$10-million] should have been used either by FIFA for the benefit of its member associations or the 2010 FIFA World Cup local organising committee, or as originally intended to benefit the Caribbean region,\u201d FIFA wrote in their official request for restitution.<\/p>\n\n\n\n The world governing body painted itself as a victim robbed of millions of dollars by people it trusted to handle FIFA business in various associations across the globe.<\/p>\n\n\n\n FIFA cited the $10-million paid to Warner among the funds it sought to recover in the petition it submitted to the DoJ along with CONCACAF and the South American football governing body, Confederaci\u00f3n Sudamericana de F\u00fatbol (CONMEBOL).<\/p>\n\n\n\n Former SAFA chief executive Dennis Mumble, who wrote to FIFA on 22 June 2016 pledging SAFA\u2019s support of the restitution claim, told amaBhungane that his letter was part of a process to plead the association\u2019s case that they were also a victim.<\/p>\n\n\n\n \u201cWe trust that, should these allegations be proven to be true, the restitution claim would be favourably considered by the US authorities and that the football family would have its good reputation restored and that the victims of these ugly deeds be recompensed,\u201d Mumble wrote.<\/p>\n\n\n\n Yet it is unclear whether SAFA followed up on this letter, and indeed presented their case as a victim.<\/p>\n\n\n\n SAFA and FIFA did not respond to amaBhungane\u2019s question on whether SAFA is regarded as a victim.<\/p>\n\n\n\n FIFA and the DoJ\u2019s statement only mention FIFA, CONCACAF and CONMEBOL as those who will benefit from the over $200-million.<\/p>\n\n\n\n Why not SAFA?<\/strong><\/strong><\/p>\n\n\n\n AmaBhungane\u2019s deep dive into how the original $10-million was paid in January 2008 suggests that SAFA was indeed a victim – a victim of Jordaan and J\u00e9r\u00f4me Valcke, the former FIFA general secretary.<\/p>\n\n\n\n The evidence shows they scrambled to get the payment pushed through – without proper authorisation and without explanation for the rush.<\/p>\n\n\n\n Whether they acted in innocent good faith or as knowing participants in a kickback scheme is not clear.<\/p>\n\n\n\n However, the evidence suggests that Jordaan\u2019s central role, then and now, has hamstrung SAFA\u2019s ability to claim its share, has contributed to poisoning Jordaan\u2019s relationship with a string of SAFA office-bearers, and has compromised the imperative for the SAFA NEC to hold him to account over the issue.<\/p>\n\n\n\n SAFA and Jordaan, through their lawyers, told amaBhungane they regarded our inquiries (comprising 27 questions posed over 12 pages of context and evidence) as contributing to \u201cfalse, reckless, baseless and erroneous reporting\u201d.<\/p>\n\n\n\n Their lawyers, Fairbridges Wertheim Becker, wrote to us, \u201cIt is perplexing that you seem hard and fast in continuing at levelling questions to our client regarding the $10 000 000 paid by FIFA for the African Diaspora.\u201d<\/p>\n\n\n\n This was perplexing to them because \u201cthe matter dates back to 2007 (15 years ago) and is therefore inanimate having died a natural death\u201d; because SAFA had previously answered questions related to the payment and because the South African government had spoken on the matter and it \u201cwas considered closed years ago\u201d.<\/p>\n\n\n\n The letter went on to accuse amaBhungane of \u201cbias\u201d and therefore neither SAFA nor Jordaan would be answering any of our questions. SAFA NEC members who sit on the national list also did not respond to an earlier question on whose authority the $10-million was taken.<\/p>\n\n\n\n In February, perhaps as a result of earlier questions from amaBhungane sent in December, SAFA announced it had referred allegations, including those related to the diaspora legacy projects, to its ethics committee, chaired by retired Justice Sisi Khampepe. Recap: South Africa, Warner & Co-Conspirator #4<\/strong><\/p>\n\n\n\n Whether Jordaan likes it or not, the matter is still very much alive.<\/p>\n\n\n\n The US authorities\u2019 prosecution has seen 27 individual defendants and four corporate entities plead guilty. Two FIFA heavyweights, Juan Angel Napout of Paraguay and Brazil\u2019s Jose Maria Marin, were convicted of racketeering after a trial.<\/p>\n\n\n\n A number of the defendants were ordered to forfeit assets obtained through corrupt activities, and under federal law the DoJ has the authority to distribute proceeds of the forfeited assets through a remission process to victims of the crime. <\/p>\n\n\n\n This was the origin of more than $200-million which the DoJ awarded to FIFA.<\/p>\n\n\n\n Various trials under the main FIFA docket are still underway, while the case against Warner – which is the one that implicates South Africa – is yet to begin.<\/p>\n\n\n\n It is worth recalling what the latest indictment against Warner, lodged in 2020, had to say.<\/p>\n\n\n\n It alleges, \u201cIn approximately 2004, high-ranking officials of FIFA and the South African government indicated to the defendant Jack Warner that they were prepared to arrange for the government of South Africa to pay $10 million\u2026 purportedly to \u2018support the African diaspora\u2019 but in fact to secure the votes of Warner and other CONCACAF representatives on the FIFA executive committee in favour of South Africa as host of the 2010 tournament.\u201d<\/p>\n\n\n\n The alleged reward payment was made four years later: \u201cAs part of the scheme, on or about January 2, 2008, January 31, 2008 and March 7, 2008, a high-ranking FIFA official, Co-Conspirator #4, caused payments of $616 000, $1 600 000 and $7 784 000 \u2014 totalling $10 million \u2014 to be wired from a FIFA account in Switzerland to a Bank of America correspondent account\u2026 for credit to accounts held in the names of CFU [Caribbean Football Union] and CONCACAF, but controlled by the defendant Jack Warner.\u201d<\/p>\n\n\n\n Wooing Warner<\/strong><\/strong><\/p>\n\n\n\n AmaBhungane has pieced together the strange details of the payments – and their lasting fallout – from court records, interviews with former SAFA officials and from documents disgorged by SAFA as a result of a 2017 access to information request by amaBhungane.<\/p>\n\n\n\n We know that \u201chigh-ranking FIFA official, Co-Conspirator #4\u201d, is in fact former general secretary J\u00e9r\u00f4me Valcke – because of documents that have emerged showing he was pressing South African officials to make the payment.<\/p>\n\n\n\n Valcke, who is appealing a Swiss conviction for bribery in a case involving World Cup media rights, told amaBhungane, \u201cThis case has been closed by both prosecutors in the US and Switzerland because whatever you think, there was never any evidence saying that neither [former FIFA president Sepp] Blatter, [former FIFA deputy general secretary] Markus Kattner or myself have done anything wrong and all was supported by evidence showing we only did what was agreed between the parties in regards of this diaspora support decided by the South African government, SAFA and CONCACAF\/CFU.\u201d<\/p>\n\n\n\n The African Diaspora Legacy Programme, under whose name the money was paid, was the brainchild of former President Thabo Mbeki who mentioned in several speeches and in the bid document that the 2010 FIFA World Cup should benefit not only South Africa, but the rest of the continent and those in the African Diaspora.<\/p>\n\n\n\n This statement by Mbeki has been used by various government officials as well as SAFA to justify why the $10-million was not a bribe.<\/p>\n\n\n\n \u201cThe South African government was “a principal originator of the policy to include the African Diaspora in the 2010 FIFA World Cup” and the “prominence … of high-ranking South African Government officials” demonstrates government’s “commitment to the [$10-million] ‘Diaspora payment\u2019,” SAFA\u2019s lawyers told up in 2017.<\/p>\n\n\n\n But no-one has produced an official proclamation where Mbeki or his government commits the country to paying the amount as part of the programme.<\/p>\n\n\n\n Yet, as amaBhungane reported<\/a> in 2015, South Africa was acutely aware of the need to get the three votes CONCACAF controlled on the FIFA executive and pulled out all stops to lobby Warner.<\/p>\n\n\n\n If there was a secret SA government commitment, as alleged in the US indictment, then it might account for why Jordaan is so angry at being left holding the $10-million baby.<\/p>\n\n\n\n However, as we shall see, there might have been another reason why the delayed payment became so urgent at the end of 2007.<\/p>\n\n\n The J\u00e9r\u00f4me and Danny show<\/strong><\/p>\n\n\n\n Valcke seems to have kick-started the drive to get these funds paid as soon as possible following a crucial meeting in Zurich on 19 September 2007, allegedly between Valcke, Jordaan, FIFA president Blatter and then deputy finance minister Jabu Moleketi.<\/p>\n\n\n\n Seemingly it was agreed between those present that the South African government would pay $10- million to CONCACAF because the same day, Valcke addressed a letter to foreign affairs director-general Ayanda Ntsaluba asking him to confirm this arrangement.<\/p>\n\n\n\n He informed Ntsaluba the South African government had committed to paying $10-million \u201cto the legacy programme for the Diaspora and specifically for the Caribbean Countries\u201d.<\/p>\n\n\n\n According to Valcke, the agreement was that the funds would be paid to FIFA who would in turn transfer it to CONCACAF.<\/p>\n\n\n\n Jordaan followed up with Ntsaluba two days later, attaching Valcke\u2019s letter to his inquiry and ending his communication by stating: \u201cYour cooperation in ensuring that government meets its commitment will be highly appreciated.\u201d<\/p>\n\n\n\n Jordaan also wrote<\/a> to Warner on the same day, informing him that he had met with Valcke, Blatter and Moleketi in Zurich on 19 September 2007 and assuring him that he would \u201censure that the matter is concluded as soon as possible\u201d.<\/p>\n\n\n\n Moleketi has refused to comment on the Zurich meeting.<\/p>\n\n\n\n The former deputy minister – who now chairs Harith General Partners, the main buyer of SAA – told amaBhungane that the $10-million matter had been finalised by the US, Swiss and South African authorities so he did not understand the publication\u2019s \u201cobsession\u201d with the issue.<\/p>\n\n\n\n Valcke was pushing so hard for an urgent finalisation of this payment that on 7 December 2007 he sent an email <\/a>to Moleketi at 1.34am in which Valcke complains that he \u201cnever received confirmation\u201d that his letter of 19 September 2007 had been received, adding: \u201cbut more important I would like to know when the transfer can be done\u201d.<\/p>\n\n\n\n He finishes by saying: \u201cThis is based on discussion between FIFA and the South African government and also between our President and H.E President Mbeki.\u201d<\/p>\n\n\n\n There is no explanation what was behind the need for these funds to be paid so urgently, even though they were part of a legacy of a tournament that was three years away at the time.<\/p>\n\n\n\n By comparison, the plan was that the other Legacy projects would only start receiving funding in 2008 and would receive funding over the course of at least three years \u2013 these were projects, after all, that were intended to leave a legacy for an event that would only take place in 2010.<\/p>\n\n\n\n In the documents that amaBhungane obtained from SAFA following a lengthy promotion of access to information fight, we could not find any mention of paying $10-million to CONCACAF as part of the African Diaspora Legacy Programme.<\/p>\n\n\n\n Eddy Maloka, who headed the African Legacy Programme until late 2007, told amaBhungane that their budget and work never included $10-million and its payment to CONCACAF. His successor, Itumeleng Dlamini, told us it was a long time ago and she doesn’t remember.<\/p>\n\n\n\n The official budget, presented to FIFA in January 2007, included a much more modest R20-million for the entire African diaspora, and was scheduled to be paid out over the course of four years.<\/p>\n\n\n\n Instead, the $10-million that was rushed through to CONCACAF in early 2008 would dwarf the entire Legacy programme.<\/p>\n\n\n\n Loading the Local Organising Committee<\/strong><\/p>\n\n\n\n What emerges from the documentation is the SA government\u2019s strange reluctance to be directly associated with the payment to CONCACAF: strange if one assumes it was a generous expression of solidarity with the Caribbean diaspora and not a bribe.<\/p>\n\n\n\n On 10 December 2007 (three days after Valcke\u2019s midnight email to Moleketi) Jordaan wrote to Valcke saying that the government had undertaken to pay the $10-million towards the \u201c2010 FIFA World Cup Diaspora Legacy Programme\u201d.<\/p>\n\n\n\n He added that Moleketi recommended that the money be paid to FIFA but the Minister of Foreign Affairs, Dr Nkosazana Dlamini-Zuma, suggested that the money be paid to the LOC.<\/p>\n\n\n\n Dlamini-Zuma did not respond to questions amaBhungane sent to verify Jordaan\u2019s claim.<\/p>\n\n\n\n This version chimes with that provided in the 2015 indictment drawn up when former CONCACAF general secretary Chuck Blazer was still alive.<\/p>\n\n\n\n Blazer was cited as Warner\u2019s co-conspirator (and was allegedly paid a $750 000 cut of the $10-million) but began working undercover for the FBI in December 2011 and became a cooperating witness.<\/p>\n\n\n\n He died of cancer in 2017.<\/p>\n\n\n\n The 2015 indictment alleges, \u201cIn the months and years after the vote, Co-Conspirator #1 [Blazer] periodically asked Warner about the status of the $10 million payment. At one point [Blazer] learned that the South Africans were unable to arrange for the payment to be made directly from government funds. Arrangements were thereafter made with FIFA officials to instead have the $10 million sent from FIFA \u2013 using funds that would otherwise have gone from FIFA to South Africa to support the World Cup.\u201d<\/p>\n\n\n\n Jordaan\u2019s 10 December 2007 letter seemingly attempts to regularise this arrangement.<\/p>\n\n\n\n He wrote to Valcke, \u201cIn view of this determination [by Dlamini-Zuma] I want to suggest that FIFA deducts this amount (US$10.0m) from the LOC\u2019s future operational budget and deals directly with the Diaspora legacy support programme. I further suggest that an agreement be drawn up between all the parties to formalise the matter.\u201d<\/p>\n\n\n\n We put it to Jordaan that no such agreement was ever drawn up.<\/p>\n\n\n\n Indeed, up until Jordaan\u2019s 10 December 2007 letter, the assumption was that the South African government would fund the $10-million payment, not the LOC.<\/p>\n\n\n\n According to the indictment, Valcke delivered the first payment of $616 000 from FIFA\u2019s account to CONCACAF on 2 January 2008.<\/p>\n\n\n\n That payment was done without any authorisation from the LOC.<\/p>\n\n\n\n Knowing that Jordaan\u2019s suggestion did not hold any power to authorise such a financial commitment without the approval of the LOC board, Valcke wrote to Jordaan on 28 January 2008.<\/p>\n\n\n\n In the letter Valcke tells Jordaan that he and the chairman of the LOC, Irvin Khoza, must send him a signed confirmation that FIFA must deduct the $10-million from the LOC\u2019s $423-million operational budget, that these funds will be administered \u201cdirectly\u201d by Warner and that SAFA is aware of the plan.<\/p>\n\n\n\n Valcke ends by mentioning that FIFA have already received two funding requests from Warner, $616 000 for an Under-16 tournament and $1.6-million for renovations of a sports centre.<\/p>\n\n\n\n There was no mention that Valcke had already processed the $616 000 payment.<\/p>\n\n\n\n Three days later, Valcke proceeded to make the second payment of $1.6-million – also without proper authorisation from the LOC.<\/p>\n\n\n\n \u201cIt took more time than expected to get this letter [of authorisation] signed by SAFA but after many requests from Kattner and myself they finally signed it and all was then in order fulfilling all compliance within FIFA statutes,\u201d Valcke told amaBhungane when asked why he approved these two payments without rightful authorisation.<\/p>\n\n\n\n \u201cAnd if you want to know why it took time ask Danny Jordaan or the president of SAFA at that time [Molefi Oliphant]. Case is closed and over after many years of investigation.\u201d<\/p>\n\n\n\n Two days before Valcke authorised the $1.6-million payment, Jordaan wrote to him apologising for the delays in getting the needed authorisation.<\/p>\n\n\n\n \u201cI have conveyed your proposal of an emergency call between [LOC] board members to the Chairman of the Board. He, however, stressed that the decision needed to be taken in a properly constituted and recorded meeting,\u201d Jordaan wrote.<\/p>\n\n\n\n Jordaan vs Oliphant<\/strong><\/p>\n\n\n\n Most of the SAFA top brass were in Ghana at the time for the Africa Cup of Nations (Afcon), so getting their approval would have been difficult. Jordaan conveyed this to Valcke. \u201cI accept that this delay is causing considerable pressure and frustration but please be assured that I am trying to expedite this urgent matter,\u201d wrote Jordaan.<\/p>\n\n\n\n By late-February, an obscure document<\/a> was presented to a skeleton exco of the LOC, comprising Jordaan, Khoza, Moleketi and the then minister of sport Makhenkesi Stofile.<\/p>\n\n\n\n The document is on a plain page with no letterhead, but crucially made two recommendations: (1) that the LOC approach government for an additional R70-million in funding, and (2) that exco recommends that the board greenlights \u201ca contribution of 10.0 million US$ to be deducted from [the LOC\u2019s] approved budget for the purpose of supporting legacy programmes in the Diaspora under FIFA\u2019s management and control\u201d.<\/p>\n\n\n\n According to the minutes of the 22 February 2008 meeting, both ministers \u201cconfirmed that the financing proposal appeared reasonable and it would be in order for the SA Government to confirm its commitment in writing\u201d.<\/p>\n\n\n\n This never happened, but with Valcke breathing down his neck, Jordaan still needed something in writing.<\/p>\n\n\n\n When the SAFA top brass returned from the Afcon, Jordaan allegedly asked Oliphant, the SAFA president, to sign a letter authorising FIFA to deduct the $10-million from the LOC\u2019s operational budget.<\/p>\n\n\n\n The letter appeared to base its approval on \u201cthe decision by the South African Government that an amount of US$ 10 million be paid to the 2010 FIFA World Cup Organising Committee South Africa\u201d – in other words on assurances the government would make good the shortfall.<\/p>\n\n\n\n \u201cI signed it because it was given to me by the person I have worked with for more than two decades. It is all about disclosure,\u201d Oliphant told<\/a> City Press<\/em>, adding he was \u201cshocked, disappointed\u2026and felt betrayed\u201d when he learned Jordaan had tried to approve the payment with a near identical letter months earlier.<\/p>\n\n\n\n Three days after he received Oliphant\u2019s letter, Valcke approved the payment of the remaining $7 784 000.<\/p>\n\n\n\n Since the instruction from Oliphant was that the $10-million should be deducted from the LOC\u2019s operational budget, the board of the LOC still needed to approve the payment which meant even by then Valcke hadn\u2019t received proper authorisation to process the payment of the $10-million.<\/p>\n\n\n\n The authorisation from the LOC never came. Moleketi confirmed to us that these funds never came from the LOC budget. <\/p>\n\n\n\n A shift from tapping the LOC budget to siphoning SAFA<\/strong>\u2019s coffers<\/strong><\/p>\n\n\n\n Jordaan\u2019s exchange with Valcke shows he worked hard to get the LOC board to approve the $10-million payment – but this never happened, notwithstanding the letter that Oliphant signed.<\/p>\n\n\n\n Instead, on 12 January 2009, FIFA Deputy Secretary General Kattner delivered a letter <\/a>personally to Jordaan informing him that FIFA would deduct $10-million from match ticketing revenue due to SAFA from FIFA, not from the LOC budget.<\/p>\n\n\n\n This was problematic because SAFA and the LOC were financially and legally separate entities.<\/p>\n\n\n\n A share of ticketing revenue was part of the benefit SAFA was promised from FIFA in terms of the contractual arrangements.<\/p>\n\n\n\n This meant that money that should have gone to developing the game, ended up instead allegedly financing Warner\u2019s lifestyle and corrupt conduct.<\/p>\n\n\n\n
AmaBhungane sent a copy of its latest questions to Khampepe, who did not acknowledge receipt.<\/p>\n\n\n\n![\"\"](\"https:\/\/amabhungane.org\/wp-content\/uploads\/2023\/06\/players3-1-1024x523.jpg\")
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