We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 27 May 2015 12:46 PM

Font Size

- Aa +

Swiss authorities open criminal proceedings linked to 2022 World Cup bid

Update: Qatar's stock market falls sharply after probe into FIFA individuals on suspicion of mismanagement and money laundering

Swiss authorities open criminal proceedings linked to 2022 World Cup bid

Qatar's stock market fell sharply on Wednesday after Swiss authorities opened criminal proceedings against individuals on suspicion of mismanagement and money laundering related to the award of rights to host the 2018 and 2022 soccer World Cups.

Switzerland's Office of the Attorney General (OAG) also said in a statement on Wednesday it had seized data and documents stored in computer systems at FIFA.

The OAG said the criminal proceedings, which were opened on March 10, are separate to a US criminal investigation into the allocation of media, marketing and sponsorship rights for soccer tournaments.

Several high-ranking soccer officials, including two vice-presidents of world governing body FIFA, were arrested by Swiss police on Wednesday and detained pending extradition to the United States.

The OAG suspects that irregularities occurred in the allocation of the FIFA World Cups of 2018 and 2022, which were awarded to Russia and Qatar respectively.

It said the offences were suspected to have taken place at least partly in Switzerland, where FIFA has its headquarters, and that there are suspicions of money laundering through Swiss bank accounts.

Subsequent to the seizure of files, the OAG and Swiss police will question 10 people who took part in voting on the hosting rights for the 2018 and 2022 World Cups as members of the Executive Committee in 2010.

An OAG spokesman said FIFA president Sepp Blatter and UEFA president Michel Platini are not among the 10 people, but did not rule out looking to speak with them at a later date.

None of the 10 people have been charged, the spokesman said, adding that the OAG's investigation is currently focused on unknown people. FIFA is not the target of its investigation at the moment.

The OAG chose to make the announcement the same day as the U.S.-led arrests in part because most of the people of interest are in Switzerland at the moment.

Under Swiss law, criminal mismanagement and money laundering can each carry penalties of up to 5 years in prison.

The Doha index dropped 2.3 percent to a one-month low of 12,123 points in a broad sell-off. Heavyweight Qatar National Bank fell 3.0 percent and Ezdan Holding, which had surged earlier this month because of its inclusion in MSCI's emerging markets index, tumbled 5.7 percent.

Although analysts have said that a potential loss of the World Cup hosting rights would have no major impact on Qatar's economy, it is likely to affect the sentiment of retail investors who dominate stock markets in the Gulf.

Arabian Business: why we're going behind a paywall

Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.