Ceremonial EU-CELAC summit could still bring big gains

An EU summit with the Community of Latin American and Caribbean States is intended to revitalize trade. Though few real results are expected, the political gesture is important. Barbara Wesel reports from Brussels.

Deutsche Welle, 11 June 2015

After Tuesday's meeting in Brussels between the European Union and the 33-member Community of Latin American and Caribbean States (CELAC), German Foreign Minister Frank-Walter Steinmeier and his Cuban counterpart, Bruno Rodriguez Parrilla, appeared together before the press. The Cuban foreign minister stressed that a cooperation agreement between the European Union and his country would hold many opportunities for both sides. He said he was very pleased with the negotiations, which would hopefully lead to a signed agreement in the future. Beyond that, Parrilla invited Steinmeier to Havana so that he could experience Cuban hospitality firsthand.

Bruno Rodrgiuez Parrilla (left) invites
Steinmeier to Havana to experience
Cuban hospitality

Steinmeier accepted and found the friendliest of words: In light of the numerous crises around the world, cooperation with Cuba is a sign of hope. The European Union wants to be - and must be - present in Latin America. However, the projected signing date of the agreement, which is to contain a section on human rights dialogue, is still unclear. Cooperation with Cuba was put on hold in 2003, following a wave of repression against dissidents.

The high-level summit in Brussels is a political gesture to signal the EU's interest in Latin America, says Susanne Gratius of FRIDE, a Madrid-based think tank that studies European foreign policy. And those contacts have become more important since China initiated a similar forum in order to undertake its own negotiations with Latin America. After all, the cultural and historical connections between Europe and the Americas, especially with Spain, remain deep. But in the face of billions in investments from China, European Union has to consider what it can really offer Latin America. Gratius suggests "Soft Power": EU countries should strengthen political and cultural dialogue, she says, and "they should spread their norms and values." Admittedly, they don't have much leverage to increase the acceptance of such offerings. Since Latin America has moved on from being a developmental partner, Europe's "political influence" in the region has waned.

The European Union is already heeding the call for more "cultural diplomacy." A concurrent academic summit in Brussels has brought together university presidents and educational ministers from Europe and the Americas to discuss research exchanges, for example. There, the EU unveiled an expansion of the Erasmus exchange program for young academics, thus offering new destinations for adventurous students. A meeting between labor organizers from both continents and an event with civil services representatives under the aegis of Federica Mogherini, the European Union's top diplomat, have already taken place. Incidentally, she has often said that Europe needs to reach out to Latin America in the way that it does the United States.

From left to right: Brazilian President Dilma Rousseff, Chilean President
Michele Bachelet and German Chancellor Angela Merkel

Improve trade relations

EU leaders want to get economic relations up and running again. The EU already has preferential trade agreements with 26 of CELAC's 33 member states. Nevertheless, further progress could prove tedious. Negotiations for a trade deal with the Mercosur group - consisting of Argentina, Brazil, Paraguay and Uruguay - have been dragging on for 20 years.

In an interview with DW, Brazilian President Dilma Rousseff promised that her country would "do everything possible, and everything impossible" to make sure that negotiations finally lead to a deal. The president added that an agreement is of existential importance to Brazil. However, optimism that a deal might soon be struck is decidedly muted in Brussels.

"One should organize more thematically specific meetings, and discuss concrete problems like migration or drugs, rather than putting on big summits," FRIDE's Gratius said. There is no denying that the interests of individual CELAC states vary greatly. What does Honduras have to do with Brazil? What do Caribbean states have to do with South American ones? That is why there is no chance to export the European integration model to Latin America: CELAC will never be more than an institutional umbrella, a loose geographic confederation of states with very different concerns and problems. Above all, the Brussels summit is about the "political visibility" of Latin America.

One of the small events taking place on the periphery of the summit is the elevation to international organization status of the Hamburg-based European Union-Latin America and Caribbean Foundation, which supports relationships between civil societies. EU-LAC President Benita Ferrero-Waldner, a former European commissioner for external relations, said the bloc should make relations with Latin America a priority: "We are 61 nations. How much could we get done if we worked in unison?" The Austrian politician knows full well how difficult it is to achieve such consensus from experience. And dialogue partners are woefully absent in some crisis situations. Recently, Ferrero-Waldner told the newspaper Die Presse that "the situation in Venezuela is very unsettling." That situation could worsen yet - first in the form of awful skirmishes, and then civil war. In light of that threat, the only thing that Europe can do is attempt to start a dialogue with Venezuela's government, if that is still possible.

HSBC unveils radical overhaul to axe up to 50,000 jobs

Yahoo – AFP, Roland Jackson, Roland Jackson with Laura Mannering in Hong Kong, 9 June 2015

HSBC says about 25,000 jobs will be lost with the sale of operations in Turkey

and Brazil (AFP Photo/Ozan Kose)

HSBC will cut its global workforce by up to 50,000 as it exits Brazil and Turkey and mulls relocating headquarters back to Asia from London, the banking giant said Tuesday.

Europe's biggest bank aims to save up to $5.0 billion (4.4 billion euros) in annual costs within two and a half years as it seeks to boost profits and move past recent scandals that have scarred the British lender, including the rigging of foreign exchange markets.

HSBC said it wants to focus more on Asia, particularly in the Pearl River Delta region in southern China, amid an ongoing review of its London headquarters that will be completed this year.

Financial analysts predict that HSBC

 may relocate its headquarters from 

London to Hong Kong, owing to its low

tax regime (AFP Photo/Ben Stansall)

"We have reshaped HSBC, but it is clear it is insufficent," said chief executive Stuart Gulliver, who has implemented swinging cutbacks since becoming the bank's head in 2011.

With regard to the group's possible new base, Gulliver said "there is an opportunity to create another Hong Kong" in Guangdong.

"The world is increasingly connected, with Asia expected to show high growth and become the centre of global trade over the next decade," he added.

Philip Benton, an analyst at research group Euromonitor, said the bank was "redeploying their resources to where the most profit and the most revenue they can generate for the bank".

"HSBC is known as an Asian bank, that is what its heritage is. And I think the problem they faced in entering markets like Brazil and Turkey... it took them a while to be established and they were also up against strong competition from the local banks," he told AFP.

Headcount slashed

HSBC said there would be a 10-percent reduction in jobs with the shedding of between 22,000 and 25,000 positions worldwide.

A further 25,000 jobs would be lost with the sale of operations in Turkey and Brazil. However some or all of these staff could be kept on by potential buyers.

The group will meanwhile seek to axe its risk-weighted assets (RWA) by a hefty $290 billion, and also outlined plans to rebrand its British retail banking division.

The announcements sent HSBC's share prices dropping 0.97 percent to 613.50 pence in late deals on London's benchmark FTSE 100 index, which was down half a percent.

HSBC said the latest job losses would include between 7,000 and 8,000 positions in Britain -- where its retail bank is being relocated from London to Birmingham, central England, by 2019.

It also aims to trim its worldwide network of branches by 12 percent, with Britain being one of seven major regions to be impacted.

HSBC has been hit by Britain's banking levy on the financial sector -- which last year cost it $1.1 billion -- as well as new industry rules to "ring fence" British banks' retail operations to protect them from riskier investment divisions.

The bank aims to save $4.5-$5.0 billion in annual costs by late 2017.

However, the initial overall cost of the restructuring is estimated at $4.0-4.5 billion.

Swiss prosecutors have closed an investigation into claims HSBC's Geneva

branch helped clients evade millions of dollars in taxes (AFP Photo/Fabrice Coffrini)

'Strategic reset'

Investec bank analyst Ian Gordon described the news as "a positive announcement".

"Today’s strategic reset is focused on the delivery of cost and RWA efficiencies, and exiting unattractive markets," he said.

Nicolas Ziegelasch, head of equity research at broker Killik & Co, agreed.

"The announced restructuring is positive as the market had begun to question whether its sheer size and scale allowed it to generate strong returns," he said.

"The refocusing on the business on its Asian operations is in line with where future global growth will come from."

Founded in Hong Kong and Shanghai in 1865, HSBC has been based in Britain since 1992 when it took over Midland Bank and shifted its headquarters to London.

HSBC said it would change its brand name in Britain, with analysts saying it could turn current branches back into the Midland.

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Camorra mob boss arrested in Brazil after 30 years on the run

Brazilian police have captured Pasquale Scotti, one of the most wanted mobsters in Italy, officials have said. The fugitive had started a new life in Brazil after changing his name and appearance.

Deutsche Welle, 27 May 2015

Pasquale Scotti was arrested in the northeastern Brazilian city of Recife, in a joint operation with Interpol, Brazilian police announced Tuesday. The former boss of the Camorra crime syndicate had been on the run since the mid-1980s, and was convicted for more than 20 homicides by an Italian court.

The 56-year old Scotti was seized while driving his two teenage daughters to school, according to the AFP news agency.

Before his arrest, Scotti had been living in Recife for 28 years, under a name of Francisco de Castro Visconti. He used false identification, taxpayer and voter registration documents, and apparently underwent several plastic surgery procedures, the police have said.

The fugitive has also married a Brazilian woman, and owned a real estate and a fireworks company.

The man told the police that not even his Brazilian family knew his true identity, and that he wanted to "forget his past; that Pasquale Scotti no longer existed. Only Francisco de Castro exists," according to the head of Interpol's Brazilian operation, Federal olice officer Valdecy Urquiza Junior.

The former mafia boss also said that he left Italy out of fear of being killed.

Escape from the hospital

Italian authorities managed to arrest Scotti, a known member of Naples mafia, after a shootout in 1983. Scotti has suffered several gunshot during the gun battle.

On Christmas Eve of 1984, he managed to escape the hospital where he was treated after signing a plea bargain. Despite a series of raids and road blocks, Italian police were not able to locate him.

"He left no traces. It's as if he vanished," Italian police were quoted as saying in a La Repubblica article from the time.

The Camorra chief was later convicted in absentia by an Italian court for illegal possession of firearms, extortion and dozens of murders.

Italy's most wanted

On Tuesday, Brazilian police said that Scotti was indentified by comparing archived fingerprints. The Italian authorities have started the process leading to his extradition, officials have said.

Italian Interior Minister Angelino Alfano praised the arrest as an "extraordinary" success, underling that Scotti was among the most sought and dangerous fugitives on Italy's most-wanted list.

dj/rc (Reuters, AFP, dpa, AP)

France warns Indonesia against executing French citizen

Yahoo – AFP, 22 April 2015

French drug trafficker Serge Atlaoui is escorted by Indonesian police commandos

following a court hearing in Tangerang, on March 11, 2015 (AFP Photo/Romeo Gacad)

French President Francois Hollande warned Indonesia on Wednesday that the execution of a Frenchman for drug offences would damage ties between the two nations.

Foreign Minister Laurent Fabius also summoned the Indonesian ambassador in Paris a day after Serge Atlaoui, 51, had an appeal rejected by Indonesia's Supreme Court, taking him closer to execution by firing squad for his role in a clandestine ecstasy lab near Jakarta.

Imprisoned in Indonesia for a decade, the father-of-four denies the charges, saying he was installing industrial machinery in what he thought was an acrylics factory.

Atlaoui's wife Sabine told AFP she had been the one to break the news of the rejected appeal to him.

"I spoke to him on the phone this morning," she said from Indonesia.

"He called me from prison and... I finally was able to give him the terrible news.

"My husband is strong, he is a fighter, brave and ready to continue fighting until the end."

His family has issued impassioned appeals in recent days, begging Hollande and the European Union to save him.

The French leader warned Wednesday that executing Atlaoui "would be damaging for Indonesia, damaging for the relations that we would like to have with it."

If put to death, Atlaoui would be the first Frenchman to be executed anywhere in nearly 40 years.

He is one of several foreign drug convicts on death row in Indonesia who recently lost appeals for presidential clemency. They are expected to be executed once final legal appeals are resolved.

Indonesia unlikely to budge

Drug laws in Indonesia are among the world's toughest.

President Joko Widodo, who took office in October, has been a vocal supporter of putting drug traffickers to death, saying the country is facing a narcotics emergency.

In January, the country executed six people accused of drug trafficking, including Brazilian and Dutch nationals.

As such, analysts say France's repeated calls for clemency have little chance of succeeding.

"Politically, he (Widodo) has understood that Indonesians want a firm leader, and he wants to show that he is a firm president, compared to his predecessor (Susilo Bambang Yudhoyono) who was known for his indecision," said political analyst Yohanes Sulaiman.

Added to this, the death penalty has considerable support in Indonesia among the elites and wider population.

According to a poll conducted by the Indo Barometer agency among 1,200 people last month, more than 84 percent of those questioned were in favour of sentencing drug traffickers to death.

In any case, it is unlikely that France or other countries whose nationals are also on death row -- such as Australia -- will impose any serious sanctions on Indonesia, Southeast Asia's biggest economy.

After the first batch of executions in January, Brazil and the Netherlands recalled their ambassadors in protest, though the diplomats came back after just a few weeks.

Germany's Bilfinger announces probe into possible Brazil 2014 World Cup bribes

German construction company Bilfinger says it is investigating claims employees in Brazil paid bribes to officials in connection with orders to supply security centers to Brazilian host cities for the 2014 World Cup.

Deutsche Welle, 22 March 2015

In a statement released on Sunday on Bilfinger SE's website, the company said it had launched a "comprehensive investigation" into an outside auditor and a law firm's involvement in "suspected bribery payments from employees of a Bilfinger company in Brazil to public officials and employees of state companies."

The allegations relate to orders to equip security command centers at 12 host cities during the 2014 World Cup in Brazil.

The company said the probe, involving auditors Ernst & Young and Deloitte, plus a specialized law firm in Brazil, showed that "suspicions have now been substantiated," although the investigation has not yet been completed, such as how much was paid to each player.

The construction company is accused of paying bribes to secure a contract worth more than 20 million euros ($21.6 million) for the 2014 World Cup in Brazil through its subsidiary Mauell, reported German tabloid Bild am Sonntag on Sunday.

The newspaper reported that illegal payments went to local Brazilian politicians and officials from world football's governing body, FIFA.

FIFA dismissed the allegations on Sunday, saying it had no influence on the project, and refuted claims its staff were bribed.

"Traffic control and security centers in the 12 FIFA 2014 World Cup venues was the responsibility of local governments. Neither FIFA, nor their employees, were involved in the awarding of contracts for host cities or the federal government," it said in a statement.

Bilfinger announced on Sunday that it received internal communication last year and immediately started an investigation into the corruption allegations by Bilfinger in Brazil.

"The company and its supervisory board have an interest in ensuring this is cleared up," the group's supervisory board chairman Eckhard Cordes told Bild.

"If the allegations are proven, we will take action with regard to personnel and will initiate legal steps," an unnamed company spokesperson said.

At the 12 host city venues for the 2014 World Cup, Bifinger had over 1,500 security monitor walls and the appropriate software needed to run the security command centers for police, fire and emergency services.

jlw/msh (Reuters, dpa, AP)

David Cameron 'not surprised' by calls for Russia to be stripped of World Cup

Downing Street warns Kremlin to change course in Ukraine, but stops short of Nick Clegg's call for outright 2018 boycott

The Guardian, Rowena Mason, political correspondent, Sunday 27 July 2014

Vladimir Putin – pictured here with the presidents of Brazil and Fifa, Dilma Rouseff
 and Sepp Blatter – is under pressure over Russia's hosting of the 2018 World Cup.
Photograph: Alexei Nikolsky/AP

David Cameron does not currently believe Russia should be stripped of hosting the 2018 World Cup but is not surprised the issue is being raised, Downing Street says.

The prime minister held back from calling for the football tournament to be taken away from Russia after Nick Clegg, the deputy prime minister, said it was "unthinkable" that the contest could be held there if the country's belligerence continues.

Labour's shadow foreign secretary, Douglas Alexander, urged football's governing body, Fifa, to draw up contingency plans for the event to be held elsewhere.

Some German politicians have already called for the 2018 World Cup bidding contest to be re-run after international condemnation of Russia over its reaction to the crash of Malaysia Airlines flight MH17 in Ukraine.

The Kremlin denies that any of its weapons were used to shoot down the plane but the UK, US and Ukraine have all said there are strong reasons to suspect the plane was shot down accidentally by pro-Putin separatists using a Soviet-era missile supplied by Russia.

Number 10 would not join those suggesting the football event should be cancelled, but the fact that this is being mooted by some "shows the importance of Russia changing course, before its international standing is damaged even further", a spokesman said.

"The prime minister does not believe we should reach immediately for boycotts, but it is also not surprising, given Russian behaviour, that people are starting to raise the issue."

Fifa has ruled out a boycott, insisting the tournament could be "a force for good". However, Clegg told the Sunday Times that stripping Russia of major sporting events would be a "very potent political and symbolic sanction".

"Vladimir Putin himself has to understand that he can't have his cake and eat it," the Liberal Democrat leader said. "He can't constantly push the patience of the international community beyond breaking point, destabilise a neighbouring country, protect these armed separatists in the east of Ukraine and still have the privilege and honour of receiving all the accolades in 2018 for being the host nation of the World Cup.

"That's why I've come to the view that if he doesn't change course it's just not on, the idea that Russia will host the World Cup in 2018. You can't have this – the beautiful game marred by the ugly aggression of Russia on the Russian-Ukrainian border.

"Not only would Vladimir Putin exploit it, I think it would make the rest of the world look so weak and so insincere about our protestations about Vladimir Putin's behaviour if we're not prepared to pull the plug."

Clegg also raised "question marks" over Russia holding the Grand Prix in Sochi in October. "Vladimir Putin is a past master at attending these sporting events and, sort of, pretending almost as if everything's utterly normal and nothing untoward is happening around him," he said.

"And if anyone needed any reminding of how dangerous this conflict is in the heart of Europe, just ask any of the family and relatives of those loved ones they lost in that plane incident last week."

Clegg has also joined Cameron's criticism of a French deal to supply warships to Russia, saying it would be "wholly inappropriate" for it to proceed in the present circumstances.

"Whilst I can entirely understand that the French may have entered into that contract with the Russians in entirely different circumstances, it is wholly inappropriate to go ahead with that now," he said.

"And as you know, the prime minister has reviewed the outstanding licenses that we have got to make sure that we deliver what we unilaterally announced back in March, which was that there would be no exports from Britain of arms products which could in any way fuel or fan the flames of the conflict in Ukraine."

Labour's Alexander said Fifa needed to think about who else could hold the World Cup in 2018 if it is proven that Russia had responsibility for the Malaysian airliner crash.

"If it is confirmed that Russia carries direct responsibly for downing flight MH17, and the Kremlin nonetheless continues to sponsor and fuel the conflict in Ukraine, then Fifa will surely face calls to reconsider if Russia should host the competition in 2018," he said. "Fifa should therefore be undertaking contingency planning now so that, if required, alternative plans are in place in plenty of time for teams and fans from around the world.

"The Ukraine crisis represents not just a threat to European security, but a significant geopolitical moment, and together, Europe must work harder to better influence critical calculations now being made in the Kremlin."

Germany head home, a little delayed, for the big party in Berlin

Germany's World Cup heroes are flying home for a grand reception in Berlin, albeit a little late. The plane was halted for two hours on the tarmac in Brazil after suspected damage to the aircraft's protective lacquering.

Deutsche Welle, 15 July 2014

The victorious German national football team and its entourage met with a rare snag on their home from Brazil on Monday evening.

Players, staff and family members had to wait an extra two hours to take off from Rio de Janeiro after the plane fuselage lacquering was scratched during loading. Technical experts were called in to examine the damage, with the plane finally pronounced fit to fly.

The delay didn't appear to affect the mood of dressing room joker Lukas Podolski, who tweeted a selfie from the cockpit wearing a pilot's cap.

Welcome on board. Captain Podolski is speaking. We're looking forward to seeing all our fans in Berlin! #lp10 #aha pic.twitter.com/cOMWLO38Fv
— Lukas-Podolski.com (@Podolski10) July 14, 2014

The plane, Lufthansa Flight 2014, was due to touch down at Berlin's Tegel Airport between 10 a.m. and 10.30 a.m. local time.

After that, the team can expect a rousing reception from fans along Berlin's Fan Mile, where tens of thousands of fans were expected to celebrate Germany's fourth lifting of the World Cup - and its first since reunification. Germany supporters will get a chance to see more of the team when they appear on a specially-constructed platform by the Brandenburg Gate.

Germany's Finance Ministry has said it will this week issue a special "Germany World Cup champion" postage stamp. Indeed, officials were so confident of victory that five million were said to have been printed ahead of the final.

"We always firmly believed the German team would win," a ministry spokeswoman said on Monday.

The German media on Monday showered Joachim Löw's side with praise for after their 1-0
extra time win against Argentina, in particular winning goal scorer "Super Mario" Götze. The player wasn't even born when Germany last won in 1990, having also defeated Argentina 1-0 in the final.

rc/tj (SID, dpa)

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Ahead of World Cup final, Merkel and Putin talk Ukraine

German Chancellor Angela Merkel and Russian President Vladimir Putin have called for increased peace efforts in Ukraine. Three months of fighting in the country's restive east have claimed more than 550 lives so far.

Deutsche Welle, 13 Juky 2014

Meeting in Rio de Janeiro ahead of the World Cup final, the German chancellor and Russian president said Ukraine's conflict "has a tendency towards degradation," according to a spokesman. Merkel has urged Putin to influence separatists to help end the fighting that has killed hundreds in eastern Ukraine.

"Both Putin and Merkel stressed the necessity to urgently resume the work of a contact group on Ukraine, possibly in the format of a video conference," said Dmitry Peskov, the Russian president's spokesman. "It is their common opinion that, in order for the contact group to resume its work, a ceasefire needs to be declared as soon as possible."

German officials have consistently tried to help bring an end to the fighting in Ukraine. Numerous efforts to restore a ceasefire in place earlier in July have proved fruitless.

Because of the fighting at home, Ukrainian President Petro Poroshenko canceled his attendance at the World Cup, where he could possibly have spoken face to face with Putin, watching the Germany-Argentina match as part of a handover ceremony. Russia will host the next FIFA World Cup, in 2018.

'An aggressive act'

Russia's Foreign Ministry has accused Ukraine of letting an errant shell hit a bordertown, killing one person and injuring two others. According to the ministry, the shell hit the courtyard of a residential building in Donetsk, Russia - near the Ukrainian city of the same name that has become a separatist stronghold - early on Sunday. Ukrainian officials have denied that the military fired a shell into Russian territory.

Despite the denial, the Foreign Ministry issued a statement calling the incident "an aggressive act by the Ukrainian side against sovereign Russian territory and the citizens of the Russian Federation." The statement also warned of the possibility of "irreversible consequences, the responsibility for which lies on the Ukrainian side."

It is not clear who fired the shell. Russia has repeatedly claimed that Ukrainian fire has hit settlements along the border, but no deaths have been previously reported.

Clashes between separatists and Ukrainian forces have escalated, with at least 18 troops and 20 civilians killed in the past two days. According to the Defense Ministry, Ukrainian forces have killed as many as 40 separatists in airstrikes over the weekend.

Amnesty International has reported abduction and torture in the conflict.

mkg/hc (Reuters, AFP, dpa, AP)

German Chancellor Angela Merkel and Russian President Vladimir Putin

chat at the Maracana Stadium (AFP)

World Cup tickets official arrested over illegal sales

Yahoo – AFP, Claire De Oliveira Neto, 8 July 2014

The CEO of Match Hospitality Raymond Whelan sits at a police station in

Rio de Janeiro after being arrested on July 7, 2014 (AFP Photo/Tasso Marcelo)

Rio de Janeiro (AFP) - Brazilian police have arrested a director from the FIFA partner company handling World Cup ticket packages, accusing him of leading a network that illegally sold game passes.

Ray Whelan, a director at Match Hospitality, was detained Monday at Rio de Janeiro's luxurious beachfront Copacabana Palace Hotel, a police spokesman told AFP, days after 11 people were rounded up in a raid to dismantle the network.

Local media said Whelan is a 64-year-old British citizen, but police were not immediately able to confirm that.

The arrest was made on the eve of the tournament's first semi-final game between Brazil and Germany in Belo Horizonte. Argentina and the Netherlands will face off for the final's last spot on Wednesday in Sao Paulo.

Police say the international scalping syndicate sold thousands of tickets worth millions of dollars, going back to the 2002 World Cup in Japan and South Korea.

The scandal is the latest to hit FIFA, which is already battling allegations that members accepted bribes from a Qatari football official to secure support for the emirate's campaign to get the 2022 World Cup finals.

Security personnel stand guard outside the Copacaban Palace Hotel following

the arrest of Ray Whelan, a director of Match Hospitality, a subsidary company

of FIFA, over illegal cup tickets in Rio de Janeiro on July 7, 2014 (AFP Photo/

Yasuyoshi Chiba)

One of Match Hospitality's shareholders is Swiss-based Infront Sports and Media, headed by Philippe Blatter, the nephew of FIFA president Sepp Blatter.

A French-Algerian suspect, Mohamadou Lamine Fofana, was initially thought to be responsible for the ticket scheme after he was among 11 people arrested last week in Rio and Sao Paulo.

But suspicions moved toward an individual at Match Hospitality, the official World Cup ticket agency, which sells deluxe packages that include private suites at stadiums and gourmet catering.

Authorities intercepted phone calls between Fofana and Whelan, according to the newspaper O Estado de Sao Paulo.

Tickets canceled

Match Hospitality said earlier that it had canceled the tickets bought by Fofana's company, Atlanta Sportif, for the semi-finals and the final.

The hospitality firm warned that it would cancel the remaining tickets of three other companies whose names appeared in tickets seized by police unless they cooperate with the probe.

The CEO of Match Hospitality Raymond Whelan arrives at a police station

 in Rio de Janeiro after being arrested accused of leading a network that illegal

sold game passes, on July 7, 2014 (AFP Photo/Tasso Marcelo)

Match identified the companies as Reliance Industries Limited, Jet Set Sports and Pamodzi Sports, but did not give details about the companies' ownership.

Reliance Industries bought 304 packages for 19 matches worth $1.2 million, including access to a private suite for all games in Rio, Sao Paolo and Belo Horizonte. Match Hospitality said 59 tickets seized last week had the company's name on them.

One ticket was imprinted with the name Jet Set Sports, which purchased 40 packages for two games worth $108,250. The package had been allocated to an individual who resides in Australia, Match Hospitality said, without naming the person.

Another ticket had the name Pamodzi, which secured 350 packages for 18 games -- including private suites and business seats - worth more than $1.2 million.

Byrom plc, a Manchester, England, company, has a 75 percent stake in Match Hospitality. It also owns Match Services. Both Match firms are based in Zurich and provide World Cup ticketing and hospitality services.

Ray Whelan was first arrested on Monday and released

after questioning

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World Cup: FIFA member behind illegal ticket sales

World Cup: FIFA member behind illegal ticket sales

A FIFA member is the source of thousands of illegal ticket sales at the World Cup finals, a Brazilian police chief said on Thursday.

Channel News Asia, AFP, 4 July 2014

FIFA World Cup Brazil 2014 self-service ticketing machines, taken on

April 18, 2014 in Rio de Janeiro, Brazil (AFP Photo/Yasuyoshi Chiba)

RIO DE JANEIRO: A FIFA member is the source of thousands of illegal ticket sales at the World Cup finals, a Brazilian police chief said on Thursday.

Police commissioner Fabio Barucke said "someone from FIFA" and "an intermediary from Match Hospitality", FIFA's ticket agency, channelled the millions of dollars worth of tickets onto the black market.

The FIFA official, who was not identified, is believed to be staying at the Copacabana Palace hotel, Barucke told reporters. The Copacabana Palace is one of the luxury Rio de Janeiro hotels being used by the FIFA hierarchy.

Police made 11 arrests Tuesday of people accused of selling tickets that may have been obtained through a contact at world football's governing body.

A police investigation, dubbed "Operation Jules Rimet" after the former French FIFA president, was launched without FIFA's knowledge, the police chief said.

However, following the arrests "we are now calling for FIFA's assistance to help us identify this FIFA person, a foreigner staying in the Copacabana Palace hotel," Barucke said.

Initially, police thought that Mohamadou Lamine Fofana, a Franco-Algerian national based in Dubai, was the source of the trafficking, Barucke said.

"But after his arrest we realised there was someone above him from FIFA with an intermediary at Match Hospitality," he added.

"We want to identify the last link in the chain, from the ticket touts at the stadiums, right through to those who are above Lamine Fofona and who passed the tickets on to him," said Barucke.

He added: "We have indications that at least one person from FIFA passed on tickets" to Match Hospitality.

Brazilian authorities said on Wednesday they suspected members of the Brazilian, Argentine and Spanish football federations were involved in illegally selling tickets normally reserved for sponsors, football federations, players and non-government organisations.

Marcos Kac, the Rio de Janeiro investigating magistrate in charge of the inquiry said Wednesday that at least 1,000 tickets per game were involved with a basic price of 1,000 euros (US$1,365).

FIFA spokeswoman Delia Fischer said Thursday the world body was waiting to get more information on the Brazilian investigation before commenting.

On Wednesday, FIFA's marketing director Thierry Weil called illegal ticket sales "a scourge" and said in a statement that the world body and its experts "have consistently been providing information to Brazilian authorities to assist them in their enforcement of existing legislation and to prosecute those violating the law.

"The fact that Brazil has a long-standing law against ticket scalping has been helpful," he added.

"FIFA is waiting on detailed information from the local authorities in order to be able to validate the tickets seized, identify their origins and take appropriate action together with the local authorities," Weil said.

The brother and agent of former football star Ronaldinho, Roberto de Assis Moreira, faces questioning in the case, but is not under investigation, Kac said.

- AFP/de

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Belgian barrage eventually beats Howard in US goal

Belgium have booked the last ticket to the World Cup quarter-finals, knocking out the USA 2-1 in extra time. Tim Howard played perhaps the game of his life in the US goal, but Belgium ultimately broke the dam.

Deutsche Welle, 2 July 2014

After Ottmar Hitzfeld's Swiss side missed a chance against Argentina, ex-Germany boss Jürgen Klinsmann could not lead the US national team into the last eight. Had either he or Hitzfeld won on Tuesday, they could have become the first German coach to lead a country other than Germany into the quarters.

Belgium stated their intent in Salvador in the very first minute, when Kevin de Bruyne fed teenage striker Divock Origi for a shot on goal. Tim Howard got down low to parry away for a corner. The names changed but the fundamental story stayed the same throughout regulation time. Belgium made markedly more chances than their opponents, but a mixture of profligacy and Howard's heroics kept the game at 0-0 right through until extra-time. Dries Mertens, de Bruyne, Eden Hazard, Marouane Fellaini, even left-back Jan Vertonghen: Howard denied them all at some point in the match as Belgium fired 23 shots at his goal just in regulation time.

Without Howard's heroics between the US posts, Belgium might have
ran away with the game

The US were also forced into an early tactical change when Fabian Johnson went off with a strained hamstring. Yet youngster DeAndre Yedlin came off the bench and managed to fill Johnson's big boots with a standout perfomance.

Marc Wilmots' Belgian side had not scored before the 70th minute all World Cup, but for the first time the Red Devils went the full 90 without finding the net. Chris Wondolowski of the US had a golden chance in stoppage time to provide the winner against the run of play, but blasted wildly over the bar from close in. The officials called Wondolowski back for offside, although replays proved they were mistaken. Thus the striker did FIFA a favor by spurning the chance and neutering any officiating scandal.

Germany vs. Algeria revisited in extra time

Just like the German match against Algeria, which stood 0-0 in regulation time, the favorites struck almost immediately after the restart. Some sloppy play from key US men Michael Bradley and Clint Dempsey allowed Belgium to pinch possession and play in de Bruyne in the box.

No Landon Donovan in Brazil for the US,
but did his successor just announce his
arrival?

The Wolfsburg star made no mistake, firing a low placed shot into the far corner, leaving the otherwise exemplary Howard a helpless spectator. The intensive and defensive effort invested by Klinsmann's side started to tell in extra time, and it was only exacerbated by the disappointment of finally conceding.

Belgium's introduction of Romelu Lukaku up front also provided the Red Devils with more late attacking impetus against tired legs. Lukaku forced Howard into two stoppage time saves before scoring Belgium's second, seemingly sealing the match.

In what seemed like an admission of defeat at the time, Klinsmann brought on US-German Bayern Munich academy star Julian Green as his third and final substitute on the stroke of 105 minutes. Immediately after the extra-time restart, 19-year-old Green volleyed the US back into contention, scoring with practically his first touch of the game. The goal unsettled Belgium and the US started to pour forward, running on adrenaline with the prospect of penaties suddenly revived. But by the skin of their teeth at the end of an exhilarating game, the Belgians were able to hold out to win 2-1.

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Germany’s Thomas Müller secures win but beaten USA reach last 16 too