Formula One’s Ecclestone charged in German bribe case
Thursday, 18 July 2013 00:00
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Reuters: Formula One Chief Executive Bernie Ecclestone has been charged with bribing a German banker to smooth the sale of a stake in the motor racing business to private equity firm CVC eight years ago.
Ecclestone, 82, has denied wrongdoing and will fight to clear his name. The case could mean a further delay to tentative plans to float Formula One on the stock market in Singapore and will revive speculation about an eventual successor to the man who turned the sport into a major global business.
An indictment has been translated into English and sent to Ecclestone’s German lawyers, charging him with bribery and breach of trust, a Munich court spokesman said.
The case centres upon a $44 million payment to German banker Gerhard Gribkowsky in 2005 when BayernLB was selling a 48 percent stake in Formula One to CVC, a private equity investor that Ecclestone was keen to see as a new shareholder.
Gribkowsky, BayernLB’s former chief risk officer, was jailed last year for more than eight years for tax evasion and bribery after taking the payment from Ecclestone and failing to declare it to German tax authorities. Ecclestone has denied that the payments to Gribkowsky amounted to bribes. Instead, he told a Munich court in November 2011 that he paid Gribkowsky to “keep him quiet” after the German put him under pressure over his tax affairs. Ecclestone’s lawyers said they would respond to the charges shortly.
