FIFA has blocked until further notice $20 million in contributions to Concacaf and Conmebol, dealing yet another blow to the confederations at the center of the international soccer corruptioncase.
In the case of Concacaf, Bloomberg reported it has had to cut off annual stipends to its 41 member nations and canceled all of its committee meetings until further notice.
“The confederation was operating with approximately $2 million in available cash — an extremely precarious situation,” Concacaf wrote in the letter, which was reviewed by Bloomberg News. “Whileour internal investigation is ongoing much of the financial situation was the result of poor budgeting and excessive spending by the prior administration.”
According to the letter,Concacaf, whose affairs are being managed by turnaround law firm Alvarez & Marsal, should have had operating reserves of $28 million at the end of 2015.