Ecclestone admits to paying German bank manager millions

Nov 9, 2011, 17:52 GMT

Munich - Formula 1 supremo Bernie Ecclestone on Wednesday admitted to a Munich court that he paid millions to a former bank manager.

Gerhard Gribkowksy is facing charges of accepting bribes of 44 million Euros (60 million dollars) from the 81-year-old Ecclestone and then not declaring them to the German tax authorities.

Gribkowsky, who has been in custody since January, was involved in sorting out a deal under which the BayernLB bank sold its Formula One shares to an investor.

Ecclestone said he wanted to keep Gribkowsky 'happy and quiet', adding that at the time he saw no other option and that he did not regard the money paid to the banker as part of the deal.

Ecclestone told the court that he was concerned that the bank manager would inform British tax authorities, which could have led to Ecclestone having to pay back-taxes amounting to a possible two billion euros.

He admitted that Gribkowsky never directly threatened him that he would talk to British officials, but he was concerned.

He sensed that the manager was no longer content working for the bank and wanted to start his own business, for which he needed money.

'I was really worried.'

Gribkowsky was interested in continuing his relationship with Ecclestone after the deal had concluded, the motorsport supremo said. 'I told him I would think about it, which is the British-polite way of saying no.'

BayernLB's Formula One shares, which the bank received after Leo Kirch's media empire went into liquidation, were sold for 840 million dollars - double the amount that the bank was hoping to receive.

Ecclestone, who is also being investigated, but has been offered immunity for his testimony, received 66 million dollars commission.

He defended the payment. 'I think I should have been paid more. I did a great thing for the bank. Through my help they received much more than they would have otherwise received.'

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