IOC Monitors Leo Wallner Corruption Investigation

(ATR) The IOC tells Around the Rings the Ethics Commission is monitoring investigations by prosecutors into a financial scandal involving Leo Wallner, IOC member and former president of the Austria Olympic Committee.

Wallner faces a 10-year jail term if allegations of financial fraud are proved, according to Austrian media reports. He is alleged to have been involved in siphoning off funds from a secret bank account of the NOC as well as other financial improprieties.

IOC spokeswoman Emmanuelle Moreau told ATR on Wednesday: "The Ethics Commission has been informed by Mr. Wallner and the Austrian NOC of the ongoing issues and is monitoring the situation.

"At this point, no action has been taken as there has been no decision by the Austrian justice."

She revealed that Wallner had decided to "refrain from sitting on the audit committee, the finance and ethics commissions" for the time being.

Wallner, 74, was elected to the IOC in 1998 and can serve untilhe is 80.

Up to three million euros could be involved with the account. Wallner, former secretary general Heinz Jungwirth and his former deputy Manuela Kovarik were authorized to sign for payments from the account. Wallner has always maintained he was unaware of any secret fund.

Austrian prosecutors last week launched an investigation into Belarusian president (and Belarus NOC President) Alexander Lukashenko's trip to an Austrian ski resort in 2002 at the invitation of Wallner while Lukashenko was banned from entering the European Union.

The holiday for Lukashenko's 11-member delegation reportedly cost 200,000 Euros. Some reports allege that the trip was paid for out of the secret account. Other reports claim that Wallner-owned Casinos Austria covered all the costs.

Earlier this year, it was reported that only half of the money was accounted for. Missing accounting books, no proper accounting and big cash withdrawals were investigated by the public prosecutor.

It is not known whether the account included funds from sponsors or the government.

Last year secretary general Heinz Jungwirth resigned as the financial scandal first unfolded. Wallner elected not to seek another term as AOC president.

AOC president Karl Stoss could not be reached for comment.

Written by Mark Bisson