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16th
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Prosecutors in Munich announced January 16 that they intend to bring Formula 1 supremo Bernie Ecclestone to trial on bribery charges this spring. The decision led Ecclestone to step down as director of the F1 Group.
The German charges relate to the $44 million payment Ecclestone made to former banker Gerhard Gribkowksy, who is currently serving a jail sentence.
Ecclestone, 83, still has an executive role at F1 Group, his powers have been curbed.
The board decided to keep him in his position of CEO, running the day to day business of the sport, albeit with two significant restrictions.
From now on, Ecclestone's activities will be closely monitored and subject to scrutiny and he will not be able to sign off on significant contracts.
F1 Group published a press release explaining the current situation:
“Mr. Ecclestone has reassured the board that he is innocent of the charges and intends to vigorously defend the case, which will commence in April 2014. After discussion with the board, Mr. Ecclestone has proposed and the board agreed that until the case has been concluded, he will step down as a director with immediate effect, thereby relinquishing his board duties and responsibilities until the case has been resolved”.
It continues: “The board believes that it is the best interests of both the F1 business and the sport that Mr. Ecclestone should continue to run the business on a day-to-day basis, but subject to increased monitoring and control by the board. Mr. Ecclestone has agreed to these arrangements. The approval and signing of significant contracts and other material business arrangements shall now be the responsibility of the chairman, Mr. Peter Brabeck-Letmathe, and the deputy chairman, Mr. Donald Mackenzie.”
The German charges relate to the $44 million payment Ecclestone made to former banker Gerhard Gribkowksy, who is currently serving a jail sentence.
Ecclestone, 83, still has an executive role at F1 Group, his powers have been curbed.
The board decided to keep him in his position of CEO, running the day to day business of the sport, albeit with two significant restrictions.
From now on, Ecclestone's activities will be closely monitored and subject to scrutiny and he will not be able to sign off on significant contracts.
F1 Group published a press release explaining the current situation:
“Mr. Ecclestone has reassured the board that he is innocent of the charges and intends to vigorously defend the case, which will commence in April 2014. After discussion with the board, Mr. Ecclestone has proposed and the board agreed that until the case has been concluded, he will step down as a director with immediate effect, thereby relinquishing his board duties and responsibilities until the case has been resolved”.
It continues: “The board believes that it is the best interests of both the F1 business and the sport that Mr. Ecclestone should continue to run the business on a day-to-day basis, but subject to increased monitoring and control by the board. Mr. Ecclestone has agreed to these arrangements. The approval and signing of significant contracts and other material business arrangements shall now be the responsibility of the chairman, Mr. Peter Brabeck-Letmathe, and the deputy chairman, Mr. Donald Mackenzie.”