Brazil launches investigation of soccer corruption

BRASILIA, Oct 3 (Reuters) -- Brazil's Congress launched this week a special investigative commission into corruption within organized soccer, which has been swamped with accusations ranging from tax evasion to mishandling transfers of players, lawmakers said on Tuesday.

The charges came after the runner-ups in the last World Cup suffered a string of losses that led to the firing this week of national coach Wanderley Luxemburgo, contributing to what has been called the worst soccer crisis in years.

"The objective is to open the black box of Brazilian soccer, where the relevant facts are hidden, denigrating the image of our country abroad," Sen. Alvador Dias, the lawmaker that proposed the investigation, told Reuters.

Dias said if the allegations directed at Brazil's Football Confederation (CBF) are true, it will involve "a lot of corruption."

The congressional commission, which has special legal powers to investigate, won the support of lawmakers on Tuesday as Congress opened after an electoral recess. This week Congress will nominate members to the commission.

Streams of corruption allegations have come as the national side staged a poor performance at the Sydney Olympics and World Cup qualifying defeats to Paraguay and Chile.

"Scandals are repeated, nothing is done about it and the fans, losing faith, don't come to games," said Dias.

Accusations have centered on Luxemburgo who has been accused of tax evasion. His former secretary Renata Alvez has alleged Luxemburgo called on players for the national side to raise their market value.

The players would then be sold abroad and Luxemburgo would receive a commission. The former coach, who has been called on as the first person to testify before the congressional commission, has denied all allegations.

CBF chief Ricardo Texeira said this week there is nothing to fear from the investigation.

Dias said there were loads of other accusations, citing among other things a Central Bank report that detected at least $40 million in funds which had entered Brazil in connection with irregular sales of players abroad.

"There are allegations of failure by the clubs' pensions to make payments and tax evasion by coaches," Dias said. "The sale of players to abroad is done in a hidden way, because there is no control of soccer."

Dias said there are also accusations that U.S. sportswear giant Nike Inc. (NKE.N) meddled in the selection of the national side according to which players it sponsors -- accusations Nike denied.

"There are accusations of inappropriate intervention by Nike in the national side that the players they sponsor are called to play," said Dias.

A Nike spokesman denied the charges, saying, "We in no way interfere in the team, Nike does not call on players nor line-up players."

Nike supplies Brazil's national side with sportswear under an agreement that stretches until after 2006 World Cup.

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

See related sites about Americas

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.