Media unveils Australia World Cup bid scandal

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Two European lobbyists hired to help bring the 2022 World Cup to Australia stand to receive 11.37 million Australian dollars (9.7 million U.S. dollars) in fees and bonuses if the bid is successful, Australian media reported Wednesday citing Football Federation Australia (FFA) files.

Australia earlier this month have pulled out of the race to stage the 2018 World Cup, instead it has targeted the 2022 tournament.

The Fairfax newspapers report said lobbyists Fedor Radmann of Germany and Peter Hargitay, a Swiss-Hungarian, would receive almost a quarter of the 45.6 million dollars (38.7 million U.S. dollars) taxpayer fund set aside for the bid.

The report said it had viewed FFA files that suggested the Australian government was not given specific details of how taxpayers' money was being spent.

FFA chief executive Ben Buckley defended the handling of the bid, saying FFA's accounting practices were exemplary and independently audited.

"The FFA is completely transparent in its dealings with government and has provided all information regarding the bidding process requested by government," Buckley said.

The Fairfax report also said FFA had spent more than 50,000 dollars (42.438 U.S. dollars) on gifts, including pearl necklaces and cufflinks, since announcing its intention to bid for the finals.

The newspaper did not indicate whether Buckley had been directly asked about the gifts mentioned in the reports.

"It is a widely accepted, common practice, among governments, many business and sporting organizations to provide symbolic gifts, to visiting international delegations," Buckley was quoted as saying.

Buckley added FIFA allows "occasional gifts" of "symbolic or incidental value".

Australian Federal Sports Minister Kate Ellis on Wednesday immediately responeded to the report saying any payments made by FFA to lobbyists involved in Australia's bid for the 2022 World Cup will be scrutinized by the government.

"Obviously the way the FFA spends government money is subject to the usual reporting and scrutiny requirements," Ellis told Australian Associated Press (AAP) through a spokeswoman.

"Any evidence to the contrary will be thoroughly investigated by the government, as would any alleged breach of the funding agreement."

Ellis said a bid task force was already in place and was working alongside the FFA.

However, the AAP said it appears the documents on which the Fairfax report is based may have been deliberately kept from the government.

"The FFA has assured the World Cup Taskforce that money has been spent appropriately," Ellis said.

 

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