For example, the city of Bern received billions from FIFA

Observers of Switzerland’s political landscape were stunned during the World Cup: ironically, leftist Bern stood out for its liberal approach to the morally controversial event in Qatar. A public viewing on public land was made possible without much fuss. Other cities dominated by red and green were much stricter, Zurich even issued a ban.

Loans totaling 1.8 billion since 2017

The reason for the Qatar-friendly course in the Zähringer city could be a financial achievement, the magnitude of which has only been known since yesterday: Bernese CEO and Fifa president Gianni Infantino (52) played the role of Claire Zachanassian, who became billionaire of Dürrenmatt’s “Visit from the old lady”, who promises money to the damp town of Güllen. The difference with the world famous piece: the town is called Bern, the amount is higher and FIFA does not ask for murder in return.

The background: Because two center and FDP MPs had stumbled upon Fifa loans in Bern’s annual accounts, they launched an investigation. It turned out that the city received 158 million francs from the governing body of world football last year.

Yesterday, the authorities laid the cards on the table and amazed the whole nation: since 2017, the federal city has received loans amounting to 1.8 billion francs – plus negative interest, which amounted to three million francs during the period in question. The case was handled through Loanboox, a debt capital platform.

Suddenly an SP politician defends Fifa

Fifa as a source of liquidity makes you sit up and notice: on the one hand, a thriving double standard is revealed. In an interview with the Tamedia newspapers, Stadtbern CFO Michael Aebersold (60) sounds like a Fifa lobbyist: when he differentiates the problems surrounding Qatar beyond recognition, when he points out that the executive is acting “on the basis of facts” rather than moral aspects when he emphasizes that the union “has not yet been convicted” of corruption and that FIFA awarded the World Cup to the emirate “years ago” – but according to Aebersold, they didn’t build it there. SP comrades are usually less prudish when it comes to criticism of Fifa and the 2022 World Cup.

Above all, the question arises as to where the financial resources come from. Allegations of suspected bribery, dishonest business dealings and fraud have been circulating around the World Football Association since its emergence as a billion-dollar machine. FIFA denies such allegations, appearing as a victim in trials.

The Financial Inspectorate checked the practice several times

According to the city of Bern, the football officials always made the best offer to bridge the bottlenecks between tax receipts. But isn’t the public sector entering the risk zone in this way?

“FIFA is not licensed as a bank or for other financial services that require a license in Switzerland,” explained Tobias Lux of the Swiss financial market regulator (Finma).

The 1.8 billion found its way through a loophole: loans can be issued without a license in Switzerland. Only: anyone who does this for commercial purposes falls under the Money Laundering Act, so strict compliance rules and control.

In this case, however, the two contracting parties in Bern and Zurich benefit from a special feature. “There are exceptions, for example if the loans are interest-free and free of charge,” says Lux. As long as FIFA does not collect interest on the Aare, this can be done without further supervision.

The financial inspectorate of the city of Bern had already scrutinized borrowing via Loanboox, says head Shanna Wagner. In 2022, there was a new, routine investigation into this practice: “In January, compliance with debt and asset management guidelines was checked,” says Wagner, focusing on “financial issues.” The result was “good”.

As always, Bern goes further: unlike the Dürrenmatt drama, no one dies here – at most a little credibility.