BT 11903 CORPORAT COMMUNICATION

SECTION 1
INDIVIDUAL ASSIGNMENT
TITLE: CORRUPTION IN FIFA
NAME

MATRIC NUMBER

ALMIN BIN SANI

BB15110083

CAMARUL ARNIZAM BIN

BB15110122

KARIM

SIGNATURE

ISMANISSA BINTI SULEKA

BB15110262

MARIANA BINTI MUHD

BB15110368

NUNUNG

TABLE OF CONTENT

NO

CONTENTS

1.0

INTRODUCTION

2.0

BACKGROUND

3.0

MEASUREMENT TAKEN

4.0

CONCLUSION

5.0

REFERENCE

PAGES

1.0 INTRODUCTION
FIFA (Federal International Football Association) is an organization that
manage all major activities of football in the world such as FIFA World Cup, Asian
cup, European Cup and Europe Champions League. This organization was founded
on 21th of May, 1904 in France with the early member just seven country but now
the member of FIFA is 209 country from six regional confederations that is Africa,
Asia, Europe, North & Central America and the Caribbean, Oceania and South
America. Thier current headquarters is in Zurich, Switzerland. FIFA coordinate World
Cup that started at the year 1930 except in 1942 and 1946 because of the World
War II until now that is once in four years.
Corruption in FIFA indeed a global issue debated today. In the truth, the
corruption in FIFA already happened for some years but in the year of 2015 the
crisis become more bigger. The crisis began when investigators from the US and
Switzerland opened an investigation to top FIFA officials that indicted in corruption.
In that investigation, nine international soccer executives and five sports marketing
and broadcasting figures were arrested by U.S. Department of Justice. Among those
involved in these arrests is the vice-president of FIFA, Jeffery Webb that also
president of CONCACAF and Eugenio Fuguerado, president of CONMEBOL. They are
under investigation by the FBI over corruption involving more than $150m (98m,
137.3) worth of bribes dating back 24 years. They will face extradition to the
United States, although, if they fight the legal process, this could take years.
Due to the corruption, FIFA has become the focus of the world and indirectly
discredit this organization. The World Cup bidding process, always plagued by
accusations of corruption, has also been taken to task over Qatars 2022 win. Sepp

Blatter as a president of FIFA since 1998 until 2015 also blamed for not being able
to manage an organization well. Furthermore many countries began to lose faith in
FIFA as world football's governing body. In addition the endemic corruption not only
compromises the quality of play on the field, but reduces fan support of the sport
and tarnishes the beauty of the beautiful game.

2.0 BACKGROUND
FIFA and corruption are two thing that always media and people talking
about, but the investigation against it has not been done thoroughly. The degree of
corruption may be debatable, but its existence at the highest levels is not. Over the
past three years, at least a dozen of the organizations 24 Executive Committee
members have been accused of serious improprieties stemming from bribes, illegal
ticket sales and other scandals. To overcome this problem from become worse, The
United States takes first step with indict 9 FIFA officials and 5 venture company
executives for corruption, embezzlement and tax fraud currencies. All of these
offense

allegedly

committed

since

1991

and

total

amount

involved

is

totaled more than 100 million. In addition, Swiss officials announced they are
investigating suspected bribery in FIFA's decision five years ago to award the 2018
World Cup tournament to Russia and the 2022 tournament to Qatar. That
investigation, which included seizing papers and electronic files from FIFA's Zurich
headquarters, follows news exposes of corruption in the World Cup bidding process.
Bidding rights, TV rights and sponsorship rights to the World Cup FIFA is the
largest source of income and many people want to get it. To obtain these rights, the
companies and conglomerates rich countries will be touting the votes of FIFA
officials. Lobbying is not false but lobbying using money is false as we can called it
as

corruption.

For

example

Issa Hayatou, the Cameroonian head of the African football confederation

and Jacques Anouma from the Ivory Coast allegedly paid 1.5 million each to vote for
Qatar instead of Australia to host the 2022 World Cup. Other than that, Jack Warner,

the president of the Confederation of North, Central American and Caribbean

Association

Football

(CONCACAF),

resigned

in

2011 after facing

numerous

corruption and bribery charges. In 2006, FIFAs Ethics Committee censured Warner
after an audit revealed he made at least $1 million illegally selling World Cup
tickets.
When FIFA officials received bribes, they want their money 'clean' in terms of
financial law. So they cheat the bank to allow money they appear 'clean'. They use
the name of FIFA to clean up their finances. When their financial affairs were made
on behalf of FIFA, their dirty money is not taxed as high as FIFA is registered in
Switzerland in the category of 'charitable organization'. This action was detected
when the emergence of several former FIFA officials opens the story giving sufficient
evidence to the FBI to open a new case against officials of FIFA. Among the most
open and with a strong evidence is the story of Chuck Blazer, deputy Football
Association USA that said he agreed with other persons in or around 1992 to
facilitate the acceptance of a bribe in conjunction with the selection of the host
nation for the 1998 World Cup and also agreed to accept bribes in conjunction with
the selection of South Africa as the host nation for the 2010 World Cup.
When Russia was announced as the winner the right to host the 2018 World
Cup, England's representative, who also wanted the right to host in 2018 revealed
they have to pay a sum of money to officials of FIFA to get their votes. However,
FIFA refused to launch an investigation into the allegations England. Then when
Qatar was announced as the winner the right to host the 2022 World Cup, many
people began to question the sanity of the FIFA World Cup held in the small country
in the summer in the Middle East. They began to suspect there was an element of
vote-buying made Qatar. Qatar credibility of the votes began to be questioned even
more so when one after the other former FIFA officials who expose corruption occurs
when hyping the votes do.
After the issue of Qatar, FIFA bowed to pressure from many quarters to launch
an investigation into the process of voting rights to host the 2018 World Cup and
the 2022 Chairman of the committee of inquiry is Michael Garcia, a prominent
lawyer in the United States. When the report is ready for Michael Garcia, FIFA also
refused to publish the investigation report publicly. This makes Michael Garcia

resigned as FIFA labeling as 'body with no leadership'. FIFA finally published reports
Michael Garcia, too. But Michael Garcia said the report was 'cleaned' by FIFA. Some
important facts are missing and distorted his statement. This adds to the confidence
of many people that FIFA is dirty (corrupt). UEFA Michel Platini led openly announced
distrust led them to FIFA Sepp Blatter. While England wanted to get right to host the
2018 World Cup, their representatives told a FIFA vice-president wanted 2.5
million for his vote. A member of the FIFA Executive Committee also wanted him to
be awarded knighthood from Queen Elizabeth.

2.1 HOW THEY SOLVE THE CRISIS

Due to the corruption, FIFA made a decision to suspend President of FIFA Sepp
Blatter, FIFA Secretary General Jerome Valcke and UEFA president Michel Platini for
90 days each. Sepp Blatter rested from all his duties as President of FIFA after the
FIFA Ethics Committee to suspend him for 90 days for investigation of corruption
cases in Switzerland. During the 90 days of suspension, Blatter is not allowed to
represent any capacity, a representative of the federal or speak to the media or to
other shareholders as representatives of FIFA. Finally, Sepp Blatter has dramatically
quit as FIFA president, days after he was defiant in re-election for a fifth term after
17 years as a president.
In another development, Chung Mongjoon, a former FIFA vice president and
current presidential candidate also has been banned from the organization for six
years and fined $103,206. Chung was suspended because the ethics committee
found him guilty of multiple violations of the FIFA code of ethics, which he
committed during South Koreas bid for the 2018 and 2022 World Cups. CocaCola,
McDonalds and a number of FIFAs other sponsors also called for Blatter to step
down immediately. They want to cancel the sponsorship if the corruption is still
happened. For example Sony decided not to renew its contract last year that is had

been a Fifa partner since 2007, after signing a contract in 2005 worth $38m
annually.
In our opinion, the best method can FIFA use to solve the crisis is finding the
root. One of the biggest issues is related to self-interest. Organisations like FIFA can
suffer when members, driven by their own wants, needs, and desires, enable group
decisions that benefit themselves to the detriment of the organisation. When the
organization have a strong bond between them there will be no crisis or corruption.
For example, maybe they can create one surrounding that will enchance their loyalty
to the organization. In addition, cooperation between the officials also needed to
maintain their mission and vision to be completed nicely.
Next, FIFAs basic structure must change. As things stand, it plays the role of
both regulator and commercial franchise-operator.

It cannot be both. We

recommend that FIFAs regulatory and business roles be separated, with the
creation of a subsidiary company to manage the business side, and we have called
for all commercial contracts (television rights, marketing, ticket sales and
sponsorship) to be subject to transparent tendering procedures that meet the very
highest international standards.
Other than that, FIFA must become much more open about its finances and
its decision-making processes. The world body manages billions of dollars, money
which belongs to the sport, not to its ruling mandarins. Top officials salaries, per
diems and other perks should be made public, as should the expenses of the
president

and

executive

committee

members.

And

crucially,

given

the concerns about the Qatar and Russia World Cup bids, voting on the hosting of
FIFA events should be decided by open ballot.
Lastly FIFA is a perfect example of a fundamentally broken organisation. Sepp
Blatter has announced he is stepping down and an extraordinary congress will be
held to elect a new president. That wont be enough. Nothing short of root and branch
change is needed. An entirely new governance structure needs to be put in place.
The role of chief executive and chair of the governing body should be separated.
Importantly, a full and unflinching investigation must be done. To conduct such a
thorough investigation, trusted outside advisers need to be called in. By trusted we

don't mean trusted by the people currently running the organisation. Rather it needs
to be a neutral party with a strong global reputation, who will investigate, report, and
help create a pathway to restructuring and resurrection.

3.0 CONCLUSION
As a conclusion, we are agree with the method taken by FIFA to solve their
problem that is to suspend the top officials. It was a good method but it will never
fix overall the crisis. As we know

4.0 REFERENCE
Website
http://www.fifa.com/about-fifa/index.html
http://www.fifa.com/aboutfifa/whoweare/history/
http://www.abc.net.au/am/content/2011/s3213413.html
http://bo.ustiser.com/2015/06/1/fifascandal.html
http://www.espnfc.com/fifaworldcup/4/blog/post/2468994/fifaandseppblatterfacecrisis
http://edition.cnn.com/2015/05/28/football/gallery/fifacorruptiontimelinemay2015/
http://www.theguardian.com/football/2015/jun/02/seppblatterfifapresidentresigns

http://www.espnfc.com/fifaworldcup/4/blog/post/2470725/10thingsyouneedtoknowaboutfifascandalschuckblazer
http://www.astroawani.com/beritasukan/rasuahfifagantungblatterdanplatiniselama90hari75800