GRIBKOWSKY AND BRIBERY

This post may not be what you would usually read here at Aqsa's Formula but considering F1 encompasses politics and economics and goes beyond motor racing I feel this blog should too. The story I'm going to talk about is one featuring heavily in the news and so I want to make sure all F1 fans are aware of and understand the issue.

There's been a court case taking place in Munich, Germany and the man on trial is one Gerhard Gribkowsky. You may be aware of this court case already but I'll give you some background information just in case you're not. In July 2011 Gribkowsky was charged with tax evasion, breach of trust and receiving corrupt payments by German prosecutors. He was on the management board of a regional bank called BayernLB and the bank just happened to own a 47% stake in F1. Six years ago Gribkowsky was in charge of managing the sale of BayernLB's share in F1 to CVC Capital Partners. This is a private equity firm which means people give them money and they then use it to buy stakes in businesses. They have a huge portfolio and operate in Europe, the USA and Asia.

So, what is it that Gribkowsky did wrong? Prosecutors claim that he sold the share without updating its true valuation, meaning it was sold at a much cheaper price. He reportedly did this in return for bribes which were disguised as consulting contracts. This made the bribes look like it was money he'd earned for advising the company on what they could do. It's all very clever... Bernie Ecclestone apparently payed Gribkowsky a staggering £28 million ($44m) in bribes but he denies any wrongdoing and claims he was threatened to pay up.

In the trial on Wednesday, Gribkowsky told the court that the allegations of bribery were "essentially true". Ecclestone, naturally, claims that Gribkowsky is only saying this to "save himself" and get a lighter sentence. Gribkowsky has been sentenced to eight years and six months in prison but it is as yet unclear what effect this will have on Mr Ecclestone. No charges have been brought forward against him and he's never been charged by Munich state prosecutors previously.

Now, could it be that the talk of a London Grand Prix, which started at around the same time as Gribkowsky's trial, was all just a big distraction created by the powers that be to get the papers and fans talking about something else? No, surely not...

Aqsa