Police Raid German FA Over Suspected Tax Evasion

(ATR) Police have raided the headquarters of the German FA and the homes of president Wolfgang Niersbach and German FIFA Exco member Theo Zwanziger over tax evasion allegations related to the 2006 World Cup.

The raid comes in the wake of allegations, reported by Der Spiegel last month, that a €6.7m ($7.4 million) slush fund was used to buy the votes of FIFA officials to secure 2006 hosting rights for Germany.

Police also reportedly searched the home of former German FA (DFB) general secretary Horst Schmidt.

"Prosecutors in Frankfurt have opened investigations on suspicion of serious tax evasion linked to the awarding of the football championship in 2006 and the transfer of 6.7 million euros of the organising committee for the German Football Association (DFB) to the FIFA football association," the prosecutor said in a statement carried by Reuters.

The German FA has denied wrongdoing. But the latest development in the deepening 2006 World Cup scandal piles pressure on Niersbach and Zwanziger to fully explain how the fund was used. Zwanziger has already admitted that a slush fund existed.

Franz Beckenbauer, head of the 2006 World Cup organizing, has admitted that he made a "mistake" in the bidding process, a reference to the secret fund, but insisted the money was not used to pay for votes.

"In order to get a subsidy from FIFA, those involved went ahead with a proposal from the FIFA finance commission that in today's eyes should have been rejected. As president of the then organizing committee bear the responsibility of this mistake," he said last week.

Reported byMark Bisson

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