Fifa’s £1.35m payment to Michel Platini: there was no written contract
• President Sepp Blatter and Platini tell investigators payment agreed orally
• Fifa probes if payment breached ethics code covering ‘conflicts of interest’
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They've got Blatter bang to rights from his and Platini's own statements - even in the unlikely event of them both telling the truth and there being a verbal contract agreed in 2002 it would have lapsed after five years under Swiss law (according to the article you quoted) meaning the payment made after this lapse was 'unfavourable to FIFA'. So that's Blatter out of the way when the FIFA committee finally gets round to a verdict, here's hoping something turns up to nail Platini as well.[/quote]
Regardless whether FIFA were legally required to make the payment outwith the 5 years, the President has the right to say that it was morally appropriate to settle the debt, and could argue that FIFAs reputation as an employer would be tarnished if they didn't honour agreements.
Of course we all know that it's utter horse shit, but that would be my defence. This hinges on whether Blatter had the authority to make the agreement, as typically organisations would have a remuneration committee who would be required to approve compensation payments over and above the norm. Fifa's delegations of authority from the time will confirm whether or not he had the right to make the promise, and if not, that is what will nail him.
I reckon he will accept the rap for going above his authority, rather than the alternative, that it was a corrupt payment in return for a particular action in the year before.[/quote]
Well.... In Switzerland.
You can make provision for debt. If you know there are invoices to be paid. You hold the money back .
There isn't a time limit on this.
Now , if you use that money for something else....
Well basically ..you're fukced.[/quote]
I assume no provision was made, firstly because no such agreement ever existed, and secondly because blatter saw little reason to put his future liabilities on the books as he acted with impunity with FIFAs money.
I don't know how corporate governance works in Switzerland, but I always thought that one of the reasons behind FIFA setting up in Zug, (aside from the tax breaks) was that the canton had rather lax laws on that front, which means that international accounting standards mean relatively zip? Besides, FIFA aren't technically a corporation, so the normal assumptions of corporate governance don't apply anyway, as they are technically a members club from what I recall of Andrew Jennings' book.
It certainly seems to be taking some unpicking, but fortunately it seems the authorities have th bit between their teeth now
Edit to say, I see your edit now, cheers for that, makes sense. Fingers crossed[/quote]
Indeed and that is what i am hinting at.
For example, i injected some personal cash into my business over 5 years ago. I can take that cash out anytime. However, if joe bloggs gave me the money ( invested) i would have to say joe bloggs invested it. I cannot make up , six years later that it really was me ( or him either).
Similarly so , Sepp can't invent Invoices.
Well he may get away with it in some Kantons, Zug for example ( where Glencore, strangely enough are based) but it won't work in Züri and FIFA is Hq'd in Züri.
In a nushell. Sepp is Fcuked. Züri doesn't tolerate his 'mist'. It's touching cloth with Platini too, because this is about Züri not Vaud ( Platini lives up the hill in Nyon where Uefa are based).
