Blatter's secret bonus that FIFA tried to cover up

After he won the presidency in 1998, in an election characterised by vote-rigging, bribes and fraud, he revealed to a senior FIFA official that ex- president Joao Havelange had ordered he should receive an annual loyalty bonus, backdated by one year, and the instruction was placed in a confidential file in FIFA's Zurich HQ. The "bonus" was even paid to him during the three months he took off from the general secretary's job in 1998 to successfully campaign for the presidency.

This disclosure is likely to spark an internal FIFA investigation and if Blatter receives this year's payment as scheduled in July, he will have collected as much as GBP1.5 million.

FIFA insiders confirm that Joao Havelange, 86, no longer has an official role with FIFA, yet he rarely needs to put his hand in his pocket. "Havelange still travels the world in style, buying expensive presents in airport boutiques with his FIFA Mastercard for his friends." said an insider. "The bill comes to Zurich and is paid promptly."

Indeed, Havelange is paid an undisclosed salary, he can claim expenses and is paid an allowance of GBP300 a day to attend FIFA events like the World Cup. Whenever he travels from his home in Brazil, a Swiss employee is flown to meet him anywhere in the world and acts as his chauffeur.

Last month new general secretary Urs Linsi announced on FIFA's web site, "We have to be as transparent as possible. FIFA is a healthy, clean and transparent organisation with nothing to hide. We should always remember to let the media and the public know what we are doing. There is huge public interest in FIFA, therefore we have to be as transparent as possible. We will try to communicate in a more open way concerning football matters so the world can believe us and be proud of their federation."

But when Sportsmail asked Mr Linsi about Blatter's salary, bonuses and perks he declined to be open about the matter, passing our questions to media director Markus Siegler.

In turn Siegler refused to answer any questions about Blatter's pay, saying, "We must abide by internal rules and cultural traditions: In Switzerland, salaries or income are simply not published. Also, you must not question FIFA's dedication to transparency."

He added, "We are all dedicated to openness but that does not include the disregard for policies which are determined internally by the relevant Committees."

Blatter's salary, perks and bonuses have been fixed in secret by Finance Committee chairman Julio Grondona, from Argentina, and his deputy Jack Warner, from Trinidad. Warner, with Blatter's approval, routinely awards lucrative FIFA contracts to himself and his family. And when Grondona was under investigation recently by local prosecutors, Blatter praised him on an Argentine radio station.

Blatter is believed to earn more than GBP900,000 a year basic pay. In addition he receives a guaranteed GBP160,000 a year expenses and tax free allowances worth an estimated GBP46,500.

Sportsmail's exclusive new disclosures will prompt people to believe this is further evidence of a secret world of pay-offs, bribes and corruption at the top of FIFA, first exposed by us a year ago.

Our revelations were followed by the notorious dossier compiled by whistle-blowing FIFA general secretary, Michel Zen-Ruffinen. He provided 
documentation alleging that Blatter controls a covert network of "consultancies," conflicts of interest, preferential treatment to favoured companies and handouts to supporters.

This came on top of disclosures of FIFA funds being diverted to a secret bank account in Liechtenstein used to bribe sports officials. One of the directors of ISL, the bankrupt marketing partner of FIFA, admitted in a German court that the company paid kickbacks.

Zen-Ruffinen and a score of his colleagues were brutally dismissed after Blatter clung on to power last May in another tacky election campaign.

Blatter's secret "loyalty bonus" was nearly discovered in April last year when the internal audit committee, set up by his critics, was about to interrogate Urs Linsi, then finance director. Blatter suspended the committee, preventing further investigations.

He announced the new makeup of the internal audit committee last autumn when his critics were ousted and in came a new, predominantly Blatter-friendly membership. The chairman is Italian IOC member Franco Carraro and media director Markus Seigler claimed in a recent release that the internal audit committee was the idea of Carraro, thus deleting from FIFA's history the battles to establish the original committee last year and the storm when Blatter killed it off.

Among the members, entrusted with ensuring the probity of FIFA's books, is Jose Carlos Salim, formerly head of finances and marketing at the Brazilian football confederation.

Last year a congressional investigation concluded that the confederation is "a den of crime, anarchy, incompetence and dishonesty." Salim was accused of demanding a USD1 million kickback from Pele's marketing company. He was also accused of alleged involvement in a USD40 million money laundering scam. Another member is Angolan soccer president Justino Fernandes who was accused of human rights abuse when he authorised the arrest and jailing of a journalist critical of government corruption.