The cash-strapped South African Football Association has lost out on a cut of billions of rand distributed to the victims of FIFA's graft scandal – seemingly because the association denies it was swindled out of $10 million. | amaBhungane
Danny Jordaan has refused to answer questions about an alleged bribe in connection with the 2010 World Cup.The South African Football Association is not slated to benefit from $201 million to be paid to victims of FIFA's corruption scandal, seemingly because the association denies it was swindled out of the $10 million.
It appears that SAFA will not benefit from $201 million in restitution awarded to FIFA by the US Department of Justice last year, even though the alleged $10-million"bribe" paid to ex-Caribbean football supremo Jack Warner was cited in FIFA's claim. Those charges stem from a 2015 indictment that rocked the footballing world. Most of South Africa's attention when that indictment was unsealed by US authorities was on the allegation that the $10 million was paid to Warner as a reward for voting for South Africa's successful 2010 World Cup bid.
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. The evidence shows they scrambled to get the payment pushed through - without proper authorisation and without explanation for the rush.
This was perplexing to them because"the matter dates back to 2007 and is therefore inanimate having died a natural death"; because SAFA had previously answered questions related to the payment and because the South African government had spoken on the matter and it"was considered closed years ago". 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.Various trials under the main FIFA docket are still under way, while the case against Warner - which is the one that implicates South Africa - is yet to begin.
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.
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. According to Valcke, the agreement was that the funds would be paid to FIFA which would, in turn, transfer it to Concacaf. to Moleketi at 01:34 in which Valcke complains that he"never received confirmation" that his letter of 19 September 2007 had been received, adding,"but more important, I would like to know when the transfer can be done". He finishes by saying:"This is based on discussion between FIFA and the South African government and also between our president and H.E President Mbeki.
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. 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. This version chimes with that provided in the 2015 indictment drawn up when former Concacaf general-secretary Chuck Blazer was still alive.
"It 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," Valcke told amaBhungane when asked why he approved these two payments without rightful authorisation.
"I accept that this delay is causing considerable pressure and frustration but please be assured that I am trying to expedite this urgent matter," wrote Jordaan. was presented to a skeleton exco of the LOC, comprising Jordaan, Khoza, Moleketi and the then Minister of Sport, Makhenkesi Stofile. 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's operational budget.
The authorisation from the LOC never came. Moleketi confirmed to us that these funds never came from the LOC budget. Jordaan's 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.
FIFA did not respond to questions amaBhungane sent on why the $10 million was not deducted from the LOC's operational budget as agreed, but taken from the portion of funds meant for SAFA instead. According to Nhlapo, the NEC never questioned why such a large sum was paid from monies owed to the association without proper authorisation.
Mumble says the delegation comprised himself, Jordaan, Warrick Radford of law firm Nortons, together with senior counsel, Gilbert Marcus and Norman Arendse. Mumble continues:"In terms of their theory, Mr Valcke needed the support of Mr Warner in his bid for the FIFA presidency."Mumble says they were informed during the debriefing sessions that the US authorities had apparently tracked Jordaan's movements and formed the view that he served as an intermediary between Valcke and Warner to lobby for votes which were crucial to any FIFA presidential race - and that they believed the $10-million payment was part of that process.
"On my arrival… Dr Jordaan was in the process of briefing the two vice-presidents and asked me to continue with the briefing whilst he met with Mr Jamal Malindi, the former Tanzanian FA president… Nhlapo claims that when he and Shishana started asking questions about the US trip, a plan was hatched to get rid of the two deputies. The 2018 SAFA Congress was brought forward, and that's where Nhlapo and Shishana lost their positions. Two months after Jordaan's US trip, the association started trying to recoup the $10 million.
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