petak, 28. prosinca 2018.

Remarks by High Representative Valentin Inzko to the United Nations Security Council (2017)


05/19/2017 OHR

Remarks by High Representative Valentin Inzko to the United Nations Security Council


Sr. Presidente, miembros distinguidos del consejo de seguridad, señorías,
Es un privilegio el estar aquí hoy para informar a este consejo sobre la situación en Bosnia y Herzegovina, un país en el cual el compromiso y la unidad de la comunidad internacional  sigue siendo crucial para alcanzar nuestro objetivo común que no es otro que una paz y seguridad sostenible en los Balcanes.
These days are special for Bosnia and Herzegovina, as it will celebrate 25 years since its admission as a full-fledged member state to the United Nations, along with Croatia and Slovenia, on 22 May 1992.
But these days are also special for my home country Austria as it was presiding the Security Council in the month of May, exactly 25 years ago.
The then Austrian Ambassador Dr. Peter Hohenfellner, as President of the Security Council, on 20 May 1992 proposed to this august body to adopt a Decision recommending to the General Assembly that Bosnia Herzegovina be admitted to the United Nations.
At the same meeting the UN Security Council unanimously adopted Resolution Nr. 755 (1992) endorsing this recommendation.
Upon this historic recommendation, Bosnia Herzegovina was admitted with General Assembly Resolution Nr. 46/237 without vote, 25 years ago, on 22 May 1992 as a member of the United Nations.
I wish to use this occasion to congratulate Bosnia Herzegovina wholeheartedly and I am very glad that – as predicted 25 years ago – Bosnia and Herzegovina has made a significant contribution to the work of the organisation, most recently with its successful tenure as a non-permanent member of the UN Security Council, but also with its peace keeping forces worldwide.
Before making my remarks today, as it is my first opportunity, I would also like to take a moment to express my sincere and heartfelt condolences to the family, friends and colleagues of Ambassador Vitaly Ivanovic Churkin, who made such a dramatic impact on the work of this esteemed Council over many years. He was also involved in the talks on former Yugoslavia as a special representative of the President of the Russian Federation.
Since I addressed this Council six months ago, Bosnia and Herzegovina has continued in its commitment to making progress along the path of Euro-Atlantic integration, while also continuing to face internal challenges to its sustainable stability and advancement.
On the positive side, BiH authorities formally received the EU Questionnaire in December and the adaptation of the Stabilization and Association Agreement with the EU took place that same month.
I wholeheartedly welcomed both developments and have consistently called upon the BiH authorities at all levels to maintain their focus on the EU agenda.
I would like to take this opportunity to commend the efforts of the EU, under the capable leadership of EUSR Lars Gunnar Wigemark, towards assisting the Bosnian authorities in achieving their aspirations for integration with the Union. Equally significant are the efforts of Enlargement Commissioner Hahn and of High Representative Frederica Mogherini, who is inviting the Balkan leaders next week to an important regional meeting in Brussels.
Equally encouraging was the consensus and forward-looking pragmatism demonstrated during the reporting period by the BiH Presidency in adopting the so-called Defense Review of military forces last November, an issue which had been outstanding for quite some time.
This is one of the requirements for Bosnia and Herzegovina in its efforts to participate in the NATO Membership Action Plan.
And on the regional level, bilateral cooperation and overall reconciliation between Bosnia and Herzegovina and Serbia has continued to improve, in large part due to the committed engagement of Serbian Prime Minister and soon to be President, Aleksandar Vucic, and also through the efforts of the BiH Council of Ministers Chair Denis Zvizdic.
Good co-operation between Sarajevo and Belgrade, and also between Sarajevo and Zagreb, has manifested itself through joint government sessions and through the visit of Croatian Prime Minister Andrej Plenkovic to Mostar.
***
Despite all these positive developments, Bosnia and Herzegovina also saw some significant challenges over the last six months.
First and foremost was the political controversy between Bosniak political representatives and Serb political parties over whether BiH should submit a request for revision of the International Criminal Court’s 2007 judgment in the genocide case of BiH vs. Serbia.
This issue split Bosniak and Serb parties and officials within the state-level coalition to an extent not seen for many years, delaying progress.
Two different legal interpretations on whether the BiH Presidency needed to renew the mandate of the BiH agent to the Court before submitting such a request proved to be irreconcilable, increasing tensions within the Presidency.
The now former agent of BiH to the International Court of Justice Sakib Softic submitted the request for revision to the ICJ, which later proved even more controversial when it came to light that the Court had already notified him that a re-nomination of the agent by the BiH authorities would be needed.
The situation was ultimately resolved when the Court made its decision on the non-admissibility of the request, but the overall dynamic whereby leading politicians focus disproportionately on ethnically divisive issues, while showing little urgency in addressing the need for real reforms, is a serious cause for concern.
The second negative trend during the reporting period surrounded the activities of the RS authorities to implement their unconstitutional referendum, including ostentatious celebrations of the 9 January holiday with the participation of some Serb members of the BiH Armed Forces.
In addition, during the reporting period, some Croat politicians have intensified calls for the “federalization” of BiH, which was understood by some to imply the further ethnic division of the country into three to four “federal units,” one of which would have a Croat majority.
Increasingly, the authorities in BiH appear unable to act even in their own self-interest in a win-win situation, for instance in addressing the commitments made under the International Monetary Fund’s arrangement with BiH.
The continued failure to meet the IMF prior actions for the completion of the first quarterly review will hold back significant international assistance to the country’s fiscal stability and economic development.
In this regard, I would like to express my praise and support for Francisco Parodi, IMF Resident Representative to BiH, for IMF’s ongoing efforts at encouraging meaningful structural reform in BiH.
Furthermore, the situation with regard to rule of law in the country continues to deteriorate. Corruption is a serious problem, and continued challenges to the state-level institutions, like the BiH Constitutional Court and the Court of BiH, contribute to the further weakening of the rule of law.
Finally, during the last six months, the frequency and intensity of the Republika Srpska President’s public remarks advocating for secession have lessened, although the “independent status” of the Republika Srspka remains part of his party’s official platform and only this week he publically expressed his certainty that such an independence referendum will eventually take place.
The lessening of such rhetoric follows the imposition of financial and travel sanctions against the RS President by the United States. This reaffirms to me that we as an international community can have an impact when we are ready to send a strong message to authorities and leaders who openly reject the rule of law and reopen the wounds of the past: that they are leading themselves and their constituencies into isolation.
In sharp contrast to divisive rhetoric are the efforts of high school students in the historic city of Jajce, who, with their determination and perseverance, prevented the partition of their high school, based on ethnic segregation, as planned by some political parties.
Equally encouraging is the news today from Srebrenica, where Bosniaks and Serbs, Muslim and Orthodox students, celebrated their high school graduation together. They stressed, “We are all human beings. With our common festivities we would like to demonstrate our mutual respect and will for reconciliation. This is the last and most realistic message out of Srebrenica.” They emphasized unity, love, and a common future.
***
Looking ahead, Bosnia and Herzegovina will have its next General Election in the Autumn of 2018.
With the difficult period surrounding the ICJ crisis and the celebration of the RS day over, political discussions in BiH will now most likely focus on amendments to the BiH Election Law.
Thus far no consensus has been reached on this issue, which has the potential to create a new political stalemate in the country.
Having in mind that some eighteen months remain before the elections, I would strongly encourage the current authorities to make the most of the forthcoming period and demonstrate to voters that they are able to look past divisive issues and deliver meaningful reforms to improve the economic situation in the entities and throughout the country.
Foremost on this list should be economic reforms demanded by the country’s international creditors, as well as EU-related issues, in order to open the early possibility of future EU candidate status for Bosnia and Herzegovina.
I also expect the authorities in BiH, foremost the parties represented in the state parliament, to finally resolve the legislative vacuum which has prevented the citizens in Mostar from electing local representatives since 2012. This will require compromise on all sides and willingness to resolve issues pragmatically.
Finally, it is simply unfathomable that more than seven years after the European Court of Human Rights ruled that the current electoral system discriminates against individuals not belonging to one of Bosnia and Herzegovina’s three constituent peoples, a considerable number of citizens are still denied the basic right to stand for public office on the basis of ethnicity.
The authorities in BiH must correct the discrimination identified in the so-called “Sejdic-Finci” and related cases as a priority.
***
Ladies and Gentlemen,
Six months ago I described two parallel trends in Bosnia and Herzegovina: positive advancement in Euro-Atlantic integration and a negative tendency to flaunt the rule of law and focus on divisive backward-looking issues.
With the continued support of the international community, the elected representatives in Bosnia and Herzegovina can make progress and ensure that the first trend becomes the dominant one, but they will need to refocus.
In the meantime, the International Community should retain all the instruments at hand. We need to be mindful of the fact that BiH is a complex political and security environment, where negative scenarios can quickly endanger the Dayton Peace Agreement and the progress achieved after Dayton.
For this reason, I am firmly convinced that there is still the necessity to maintain the EU military force on the ground with an executive military mandate, and I fully support its extension when the Security Council considers this issue in November.
EUFOR is a relatively inexpensive but necessary investment in peace and stability in the Balkans.
In my view, it provides an essential baseline of physical and psychological security that supports the EU, my Office and other international organizations in pursuing our common goal of sustainable peace and prosperity for BiH and its people.
Recent scenes witnessed in the parliament of the Former Yugoslav Republic of Macedonia remind us of how quickly an incident can escalate in the Balkan countries.
***
Ladies and Gentlemen,
Despite the progress BiH has made in the last two years in pursuit of EU candidate country status, the country still faces fundamental challenges.
As we enter the third decade of peace implementation, it cannot be assumed that BiH is on a glide path to a “peaceful, viable state irreversibly on course for European integration.”
This will require continued attention and commitment from the international community and in this regard I would like to thank you for your continued attention to Bosnia and Herzegovina.
The international community cannot deliver the changes needed to bring Bosnians and Herzegovinians greater prosperity, stability and membership in Euro-Atlantic institutions. Only the leaders and institutions can do this.
But we can – and in my view we must  – continue to offer institutional support and a vision based on integration and functionality.
In addition we must be firm in upholding the sovereignty and territorial integrity of Bosnia and Herzegovina, providing a framework of stability and respect for the Peace Agreement.
In these things, our commitment to Bosnia and Herzegovina and its wonderful and talented people remains unwavering.
Thank you.

četvrtak, 27. prosinca 2018.

WikiLeaks Cables - Vjekoslav Vuković - ARREST OF ASSISTANT SECURITY MINISTER SHOCKS BIH AND RAISES MANY TROUBLING QUESTIONS

https://wikileaks.org/plusd/cables/09SARAJEVO101_a.html

B. 07 SARAJEVO 1583 Classified By: DCM Judith B. Cefkin, 1.4 (b),(d) 1. (C) Summary: On January 16 Croatian police arrested Bosnian State Level Assistant Minister of Security Vjekoslav Vukovic in Rijeka, pending further investigation into his alleged role in procuring weapons and explosives for an aborted murder attempt. At this point, it is still unclear as to what, if any, concrete evidence may exist linking Vukovic to the alleged crime. At the time of his arrest, Vukovic was driving an official government vehicle, allegedly without authorization. Since his arrest Vukovic has been temporarily suspended from his position in the ministry. Vukovic had been an effective chairman of the Citizenship Review Commission (CRC), which was established to determine whether individuals who acquired Bosnian citizenship between April 1992 and January 1996 had done so legally. Vukovic was the leading Croat candidate for the Directorship of the newly formed state-level police agency for forensics. The arrest has garnered significant press coverage, and is being exploited by politicians to advance their own narrow agendas, particularly as it relates to the threat posed by terrorism and Islamic extremism. Minister of Security Tarik Sadovic has used the arrest to publicly discredit Vukovic and his work, including the CRC, and has made statements to reporters about Vukovic's "close relations with US intelligence circles." End Summary The Arrest ---------- 2. (SBU) On January 16 Croatian police arrested Assistant Minister of Security Vjekoslav Vukovic under suspicion of having sold a weapon and explosives intended for use in the murder of the owner of a Rijeka private security firm. Vukovic is a dual citizen of Bosnia and Croatia. Shortly after the arrest Croatian Interior Minister Tomislav Karamarko called Bosnian Minister of Security Tarik Sadovic to inform him of the incident. We are told that Vukovic, if convicted, could face a jail term ranging from three to thirty years. However, it is at this point unclear as to what, if any, concrete evidence may exist linking Vukovic to the alleged crime. Likely fearing that Vukovic would flee to Bosnia (which has no extradition treaty with Croatia), a Rijeka court refused to grant Vukovic bail and remanded him to custody for 30 days, pending further investigation. Vukovic's lawyer Antun Senona told media that Vukovic denied all charges and was shocked by what he described as his "media lynching" in both Bosnia and Croatia. Who is Vukovic? ---------------- 3. (C) At the time of his arrest Vjekoslav Vukovic was Assistant Minister at the Ministry of Security in charge of the Section for fighting terrorism, organized crime, and illegal narcotics. Vukovic had also been chairman of the Citizenship Review Commission, which was established to determine whether individuals who acquired Bosnian citizenship between April 1992 and January 1996 had done so legally. The CRC's work, which enjoyed strong US support, focused primarily on foreign fighters of Middle Eastern/North African origin, many of whom had their citizenship stripped. Vukovic, who is widely regarded as one of the few competent employees at the Ministry of Security, was a leading contender for the position of Director of the newly-created state-level agency for forensics. Vukovic was a regular US Embassy contact and also worked closely with OHR. Sadovic's Response ------------------ 4. (C) Conservative Bosniaks have attempted to use Vukovic's arrest to call into question the CRC's work. Minister of Security Tarik Sadovic wasted little time in making the arrest public and added that Vukovic, whom he does not like, had been using an official vehicle without authorization and would be suspended. Sadovic (has often downplayed the possibility of Islamic terrorism in Bosnia) could not refrain SARAJEVO 00000101 002 OF 002 from publicly discrediting Vukovic, while also not so subtly calling into question Vukovic's work. Furthermore, Sadovic highlighted Vukovic's connections to OHR PDHR Raffi Gregorian and declared that Vukovic was "very close to US intelligence circles and other American structures in BiH." 5. (SBU) This was picked up by Dnevni Avaz, the leading pro-Bosniak daily which carried an article on January 19 alleging that Vukovic, along with two others police officials, were actually criminals themselves. The newspaper stressed that these three reached very high places in the police forces after the war and falsely sold themselves as "big fighters" against Islamic terrorism to international intelligence agencies. Vukovic's arrest, the Avaz story implied, revealed that they themselves were criminals. The next day an op ed in Dnevni Avaz asserted that the arrest of Vukovic raises doubt about everything Vukovic was doing, especially his involvement in the CRC. Serbs use the Arrest to attack the State ---------------------------------------- 6. (SBU) The Serb Democratic Party (SDS) called on leaders of ruling parties to replace the BiH Council of Ministers and asserted that Vukovic's arrest was one more sign that BiH has become a state whose institutions were deeply enmeshed in criminality. The Alliance of Independent Social Democrat's (SNSD) Rajko Vasic said that the arrest would harm BiH. The problem was the CoM was an "artificial institution, which lacked concrete criteria for employment, allowing, Vasic implied, it to regularly employ "criminals," such as Vukovic. RS Interior Minister Stanislav Cadjo announced that Vukovic's arrest demonstrated the sorry state of affairs at the Ministry of Security. Other Serb officials intimated that Vukovic's arrest demonstrated the failure of OHR to properly vet candidates for high office. OHR quickly retorted that that responsibility was transferred in 2006 to BiH state structures. Croats urge Patience; Terrorism Threat is Real --------------------------------------------- - 7. (SBU) Croat politicians, such as HDZ-BiH official Ivo Miro Jovic, stressed that the public should not jump to conclusions about Vukovic's guilt until the investigation was complete. Deputy Security Minister Mijo Kresic (HDZ-BiH) echoed this sentiment and also disputed allegations that Vukovic's arrest automatically discredited reports of "Islamic terrorist" activity in BiH. Kresic stressed that that assessments of possible terrorist threats in BiH came not from Vukovic alone but from a number of officials and agencies. He stressed that such issues fell under the competency of police agencies and the Bosnian intelligence agency (OSA) and were not the sole responsibility of Assistant Minister Vukovic. Comment ------- 8. (C) The arrest of Vjekoslav Vukovic is disturbing for several reasons. First, if Vukovic is found guilty, it is obviously extremely troubling that a senior BiH official overseeing the fight against organized crime could be complicit in weapons trafficking and attempted murder. Second, even if Vukovic is cleared of all allegations, the stigma of the arrest has likely permanently damaged his career and the reputation of an important state-level institution responsible for security issues, thus providing ammunition for detractors of state-level institutions especially in the Republika Srpska. A third and particularly worrying fallout from the arrest is its use by Sadovic and other conservative Bosniak forces to discredit the work of the CRC and to downplay the real dangers to Bosnia from Islamic hardliners who seek to exploit Bosnia's relatively permissive environment, as a potential base for terrorism. Sadovic's comments are part of a series of unhelpful stances he has taken in order to downplay security risks from foreign fighters in BiH. ENGLISH

subota, 21. srpnja 2018.

Summary of Project Information submitted by Nova Banka Bijeljina to IFC (other keywords: Poteza Adriatic Fund; Global, Pokojninska Družba, Bosnia, Slovenia, Netherlands)

The Summary of Project Information (SPI) submitted by Nova Banka ad Bijeljina to the International Finance Corporation (IFC), whose parent organization is the World Bank, is a school example on how the World Bank acquires participation and frequently majority ownership in the commercial banks in the transition countries. The SPI below specifically descibes the project sponsor Poteza as "an IFC existing portfolio private equity fund formed by Poteza Nalozbe d.o.o from Slovenia. The Fund makes equity and equity-related investments in companies based in Southeastern Europe through majoritity or significant minority stakes. Its primary target countries for investment are Bosnia and HerzegovinaCroatiaSerbia, and Slovenia." 


This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Summary of Project Information (SPI)

Project number
24611
Project name
Nova Banka a.d.
Country
Bosnia and Herzegovina
Sector
Finance & Insurance
Department
Global Financial Markets Group
Company name
Nova Banka
Environmental category
FI-1
Date SPI disclosed
November 17, 2005
Projected board date
December 17, 2005
Status
Pend FAP


Project sponsor and major shareholders of project company
The project sponsor is Poteza Adriatic Fund B.V. (Poteza, or the Fund), an IFC existing portfolio private equity fund formed by Poteza Nalozbe d.o.o from Slovenia. The Fund makes equity and equity-related investments in companies based in Southeastern Europe through majority or significant minority stakes. Its primary target countries for investment are Bosnia and Herzegovina, Croatia, Serbia, and Slovenia. In June 2005, Poteza and a co-investor, Prva Pokojninska Druzba d.d., a pension insurance company based in Slovenia, acquired 50% + 1 share ownership of the Bank. Poteza and its co-investor own 44.1% and 5.9% respectively of the Bank’s share ownership. Other shareholders include local individuals and corporations such as Slobodan Radanovic (5.7%), Invest Nova d.o.o. (3.7%), and Goran Avlijas (3.4%).

Total project cost and proposed IFC investment
The proposed IFC financing package is for a total amount of EUR 15 million.

Location of project and description of site
Nova Banka is a licensed commercial bank headquartered in Bijeljina, Bosnia and Herzegovina, with 11 branches and 58 outlets mainly in RS.

Description of company and purpose of project
The proposed transaction consists of a financing package of up to EUR 15 million to Nova Banka a.d., Bijeljina (Nova Banka or the Bank or company), a commercial bank in Bosnia and Herzegovina (BiH), operating predominantly in the less developed Republic of Srpska (RS). Alongside this financing, Nova Banka has requested IFC to consider supporting a technical assistance program involving training and consulting in specific areas to enable better service delivery to the Bank’s retail and corporate clients. Profitable and well-positioned, Nova Banka plans to accelerate its growth with the requested funds and technical assistance through on-lending to private small- and medium-sized enterprises (SMEs) and to the consumer retail housing sector. The Bank is facing growing needs from both companies and consumers for long-term financing. As the economy of BiH is still in the early stage of transition, the country has much need for the development of its SMEs and its medium-low income households. Consequently, the project is expected to have a high developmental impact on BiH.

Environmental and social issues - Category FI-1
This is an environmental and social FI type 1 project. Nova Banka will be required to establish an environmental management system which is acceptable to IFC in order to ensure that its operations in lending to clients are in compliance with host country environmental and social requirements.


To contact the project company, please write to:
Janez Klobcar
Partner & CEO
Poteza Partners d.o.o.
Zelezna cesta 18
SI - 1000 Ljubljana
Slovenia
Phone: + 386 1 30 70 708
Fax: + 386 1 30 70 887

The International Finance Corporation (IFC) promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives.

IFC is a member of the World Bank Group and is headquartered in Washington, DC. It shares the primary objective of all World Bank Group institutions: to improve the quality of the lives of people in its developing member countries. IFC Mission Statement.

Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It promotes sustainable private sector development primarily by:
  • Financing private sector projects located in the developing world.
  • Helping private companies in the developing world mobilize financing in international financial markets.
  • Providing advice and technical assistance to businesses and governments.
Read more about IFC's Products and Services.

To find information about existing and proposed IFC projects, search IFC project documents.


četvrtak, 7. lipnja 2018.

On controversial businessman Sead Dizdarevic and Olympics/ O kontroverznom biznismenu Seadu Dizdareviću i Olimpijskim igrama



The example of the Jet Set Sports owned by Sead Dizdarevic is a perfect illustration of how to infiltrate the most isolated and closed structures and create a platform for further networking.  A military academy dropout from Yugoslavia, Dizdarevic immigrated to the US and “launched his company in 1975 to focus on the opportunity unfolding at the 1984 Olympic Winter Games and the first executed Olympic Games packages for the 1984 Winter Olympic Games in Sarajevo, Yugoslavia[1]During the Olympics, he converted the Sarajevo villa of the late Marshal Tito into corporate suites and persuaded Yugoslav military officers to host Americans in their own homes, and to serve them tea or whiskey once a day as a special treat.
According to the 2004 database of federal campaign contributions in 07931 (zip code for New Jersey, Far Hills) Sead Dizdarevic was a resident of Far Hills, where he lived with his wife Margaret, homemaker. According to the same source, for the 2004 Fundrace Mr. Dizdarevic donated $ 25.000 to RNC (Republican National State Elections Committee) +  $ 2.000 to George W. Bush in the capacity of the CEO of Jet Set Sports, and $ 500 privately; and his wife Margaret donated $2.000 to the George W. Bush campaign. According to the source at campaignmoney.com/political/contribution, he made the same political choice in 2002 and made donations several times. (Several articles on Sead Dizdarevic and his dealings with the Olympics, including the scandals involving VIPs  available below).
In 1984 he issued statement for the local BaH daily “Oslobodjenje” on the  6th  of April in the capacity of the co-owner of the Jet Set Tours from New York praising the work of the local BaH economic giant UPI (production of foods; agriculture; 3000 retail places; catering and accommodation services at own hotels, motels, restaurants and grills and UPI bank),  in accommodating and providing meals for the rich American businessmen, members of the Merill Lynch Club. On this occasion he mentioned that he groups of guests had been accommodated at the Ciglane apartment blocks and the meals were organized for them at UPI’s restaurant Oktobar at the department store “Sarajka”. He acknowledged that it was only the beginning of further cooperation.
Primjer kompanije Jet Set Sports u vlasništvu Seada Dizdarevića savršeno ilustrira kako je zapravo moguće infiltrirati se u najizoliranije i najzatvorenije strukture i stvoriti platformu za dalje umrežavanje. Dizdarević koji je prekinuo školovanje na vojnoj akademiji, iz Jugoslavije je emigrirao u SAD, kako bi osnovao kompaniju 1975. i fokusirao se na poslovne prilike koje su se ukazale u vezi sa Zimskim olimpijskim igrama u Sarajevu. Za potrebe sještaja američkih putnika ne samo da je dobio na raspolaganje sarajevsku vilu Maršala Tita, nego mu je i omogućeno da organizira smještaj Amerikanaca u domovima vojnih lica.     
Peter Waldman: Schmoozer makes Olympic comeback  (The Wall Street Journal, 2002)
For off-the-field Olympic comebacks, the story of Sead Dizdarevic may be unparalleled.
Dizdarevic is the official corporate-hospitality sponsor of the Olympic Winter Games, a title that hardly does justice to a picaresque career. After the closing ceremonies this Sunday, his company, Jet Set Sports, will have shuffled 16,000 visitors through Salt Lake City, filled 18,000 hotel beds, provided 132,000 meals and hawked $23 million worth of Games tickets. Jet Set's Olympics-related sales, including those to its blue-chip schmoozing clients like ChevronTexaco, AOL Time Warner, Merrill Lynch and McDonald's, could top $80 million, he says. Not bad for an immigrant from Bosnia who in 1999 told a federal judge in Brooklyn, N.Y., that his company had an unlisted phone number, didn't advertise and didn't even own a checkbook since it dealt mostly in foreign currency. Later, he told U.S. prosecutors he had given $131,000 in cash to the leaders of Salt Lake's Olympic bid committee, dispensing the notes by hand at hotels and airports in 1994 and 1995. The allegations, which might have ended Dizdarevic's Olympics affiliation, anchored the government's 15-count indictment of the bid group's top two officers for racketeering and fraud, dismissed last year by a U.S. district judge here.Dizdarevic says his brush with scandal is ancient history now. The plucky 51-year-old New Jersey resident, through his sponsorship agreement with the Salt Lake Organizing Committee and the U.S. Olympic Committee, holds a virtual monopoly on the U.S. Olympic tickets-package market. In exchange for roughly $20 million in fees, spread out over three Olympic Games through Athens in 2004, Dizdarevic enjoys guaranteed access to large allotments of premium-grade tickets and hotel rooms, which he resells in packages at steeply marked-up prices to eager corporate buyers. He also owns the rights to resell scads of second-tier events tickets, which he bundles with two- and three-star hotel rooms for sale to the public at large. "His corporate clients think the world of him," says Dick Schultz, who ran the USOC in the late 1990s when Dizdarevic was one of several authorized ticket re-sellers who had to scramble to nail down access. "Sead's taken a cottage industry and turned it into a real blockbuster." The Salt Lake Games are an example. Dizdarevic used the sponsorship agreement, which he signed in 1999, to help lock up 30 percent of the city's hotel capacity and more than 10 percent of the Games' tickets. He booked three of the area's best restaurants for the entire 17-day Olympics, and leased 124 SUVs and 24 buses to take VIPs around. Most corporate packages sell for $20,000 to $30,000 for a three-day stay, all inclusive but airfare. He sold out last spring.
"He's always years ahead of everybody else," says Don Barr, a former publisher of Sports Illustrated, which has sent thousands of guests to the past several Games with Dizdarevic. "He delivers." Dizdarevic is among those who say the Olympic movement needed the 1998 Salt Lake bid scandal to clean up its act. In that imbroglio, two Olympics organizers were accused of giving $1 million in payoffs to International Olympic Committee members to curry favor for Salt Lake's bid. The IOC ousted 10 of its members for accepting lavish gifts. Dizdarevic received immunity from prosecution for cooperating with the government in the case. Today he says the scandal was the best thing that ever happened to the Olympics. "Now we have rules," he says. "We need one more (scandal), then the Olympic movement will be a true Olympic movement again."Dizdarevic was no slacker under the old rules, either. He acknowledges making cash "contributions" over the years to Olympics organizers whose access to tickets, hotel rooms and the like he needed to run his business. Stan Parrish, who ran Utah's economic-development office in the late 1980s, once wrote a report after meeting Dizdarevic in Europe. The topic: strategies to win the Games. "Sead had some interesting thoughts about . . . the mechanics of the (IOC) voting process," Parrish wrote in the 1989 memo. "He also said he spent $500,000 on the Sofia bid and felt he learned some interesting lessons in the process. He feels some political commitments are made with trade-offs."Dizdarevic confirms giving "tens of thousands" of dollars to Bulgaria's failed Olympics bid, in his role as official agent of the Bulgaria Olympic Committee. "It was my honor, my privilege," he says. Dizdarevic also had a penchant for striking up business ties with wives, daughters and girlfriends of people with influence over the Games — a practice he never meant "as anything dishonorable," he says. In one business venture outlined in court filings in the Salt Lake federal fraud case, Dizdarevic was linked in the early 1990s to Susan Krimsky, wife of the USOC's chief marketer at the time, John Krimsky. The court document, filed by defense lawyers based on Dizdarevic's testimony to a federal grand jury, labels the tie-up "a classic kickback scheme," which ended in Dizdarevic's paying Susan Krimsky $225,000 for a company "then of little worth," the filing says. Dizdarevic, citing the court matter, declines to comment, except to say it was nothing improper. Susan Krimsky could not be reached for comment; her husband declined to answer questions about Dizdarevic. Before the 2000 Sydney Olympics, Dizdarevic says, he hired the girlfriend of a local Olympics organizing executive to book hotel rooms for the Australia Games, never realizing how awkward it might look, he says. Likewise, in Salt Lake, Dizdarevic says he commissioned Utah travel agent Cathy Barnes to assemble Olympic tour packages for Jet Set's individual clients starting in 1999 — not realizing Barnes is the daughter of Gordon B. Hinckley, president and prophet of the The Church of Jesus Christ of Latter-day Saints. (Barnes has no connection to SLOC or the IOC, though her husband, Alan, worked as SLOC's office manager until his death last year. She has since sold her agency and didn't return messages left with former colleagues in Salt Lake.) "Now I realize how some people zero in on perceptions," says Dizdarevic.Raised in a prosperous Muslim family outside Sarajevo, Dizdarevic fled the former Yugoslavia at age 20, dropping out of a military academy to play club soccer in West Germany. He immigrated to Staten Island, N.Y., in the early 1970s and founded a travel agency specializing in discount flights to Yugoslavia. His business boomed as he arranged tickets for amateur sports teams traveling between the United States and Eastern bloc, connections he would parlay into his first Olympics break: handling tickets and hospitality for Americans traveling to the 1984 Winter Games in Sarajevo.
Short of comfortable hotel rooms, he converted the Sarajevo villa of the late Yugoslav dictator Marshal Tito into corporate suites. He also persuaded Yugoslav military officers and others to host Americans in their own homes, and to serve them tea or whiskey once a day as a special treat. Faced with the same problem in Lillehammer, Norway, in 1992, Dizdarevic persuaded a farmer to rent his field for a 183-room temporary hotel he had built in the middle of town. He lost money on the deal, but it was the best investment he ever made, Dizdarevic says.
"Even Olympic people who don't know my name know that hotel," he says. After Salt Lake, it's off to the 2004 Summer Games in Athens, where Dizdarevic is negotiating with the local organizing committee to be the official corporate-hospitality sponsor there as well. Seven of his nine major corporate clients have already committed to sending guests. Two luxury cruise ships and 600 four-star hotel rooms have been nailed down, as well as 1,100 less-pricey rooms for noncorporate guests. Then come the 2006 Winter Games in Turino, Italy; Dizdarevic says he expects to sign a sponsorship letter of intent this week. He has booked 550 high-end beds and 750 consumer rooms. For Beijing, 2008, he and the organizers have held introductory meetings. Dizdarevic says corporations are jumping at China; he predicts corporate attendance will be 2 1/2 times what it is in Salt Lake, reaching 40,000 guests. "A lot of them don't want to wait six years," Dizdarevic says. "They'd like to jump from here to Beijing."
Jet Set Sports LLC (Far Hills, N.J.), the parent company of CoSport LLC, is a leading provider of Olympic Games hospitality packages and individual Olympic Games event tickets. Since 1984 Olympic Games in Sarajevo, Jet Set Sports has provided corporate clients with unparalleled hospitality experiences at Olympic Games through its VIP Hospitality Programs and Hospitality Management Services (www.jetsetsports.com). CoSport (www.cosport.com) is the Official Ticket Sales Agent of the United States Olympic Committee (USOC) for the 2006 Olympic Winter Games in Torino, Italy. The partnership was established to provide Americans the opportunity to purchase premier event tickets and hospitality packages, including meals, bi-lingual hosts, ground transportation obtained directly through the Olympic Organizing Committees, accommodation and tickets to base level packages which include tickets and accommodations for the upcoming Olympic Winter Games. As the Official Ticket Sales Agent of the USOC and Official Sponsor of the Torino 2006 Olympic Winter Games, CoSport headed by its President Matt Bijur is the only company that provides full access to the Olympic Games. CoSport and Jet Set Sports were also the Official Ticket and Travel Package Sponsor of the Canadian Olympic Team and Official Supporter level sponsor of the Athens 2004 Olympic Games.
About Jet Set Sports
Jet Set Sports LLC, the parent company of CoSport, is a leading provider of Olympic Games hospitality packages and individual Olympic Games event tickets. Since 1984, Jet Set Sports has provided corporate clients with unparalleled hospitality experiences at Olympic Games through its VIP Hospitality Programs and Hospitality Management Services. The founder of Jet Set Sports is Sead Dizdarevic. Jet Set, a pioneer in Olympic Games corporate travel and hospitality logistics, has built its name nearly exclusively over the last two decades with large corporations, mainly Games sponsors. Dizdarevic launched his company in 1975 to focus on the opportunity unfolding at the 1984 Olympic Winter Games and the first executed Olympic Games packages for the 1984 Winter Olympic Games in his native Sarajevo, Yugoslavia[2]. The company and its public ticket sales subsidiary, CoSport, became U.S. Olympic Games sponsors in 2000 essentially as a defensive move to discourage competition.
On February 26, 2003, Jet Set Sports announced sponsorship agreement that extended Jet Set Sports’ support of the United States Olympic Committee “USOC” and the U. S. Olympic Team as the official sponsor for hospitality programs and management services, corporate and consumer ticket and travel packages, and individual tickets through the 2012 Olympic Games. Beginning in 2005, the agreement confirms that Jet Set Sports, and sister company CoSport, will continue to provide world class hospitality services for U.S. Olympic Team sponsors, National Governing Bodies (NGBs) and their members and the general public at the XX Olympic Winter Games in Torino, Italy in 2006, and the Games of the XXIX Olympiad in Beijing, China in 2008, as well as the XXI Olympic Winter Games in 2010 and the Games of the XXX Olympiad in 2012. A USOC official sponsor since 2000, the agreement continues Jet Set Sports’ 20-year relationship with the international Olympic Games Movement and ongoing relationship with the USOC… In addition to the USOC, Jet Set Sports is a sponsor of nine other National Olympic Committees (NOCs) and several U.S. NGBs such as; U.S. Speedskating, U.S.A. Cycling, U.S.A. Weightlifting and U.S.A. Gymnastics.[3] The new sponsorship agreement is ground breaking for the USOC. For the first time, all of the ticket and hospitality packages are combined under a single exclusive provider. Lloyd Ward, U.S. Olympic Committee CEO said, “Jet Set Sports has a long-standing tradition of supporting athletes from around the world in their pursuit of excellence. Through the extension of the sponsorship agreement with the U.S. Olympic Team, Jet Set is once again demonstrating its commitment to America’s athletes.”
Additionally, Jet Set Sports was an Official Sponsor of the 2004 Olympic Games in Athens (on the basis of its relationship with the 2004 Athens Organising Committee ATHOC) and the 2002 Olympic Winter Games in Salt Lake City and a provider of the 2002 Olympic Games Torch Relay. During the 2002 Salt Lake Olympic Winter Games more than 12 U.S. Olympic sponsors utilized Jet Set Sports’ hospitality services while CoSport, the Official Public Package Agent for the 2002 Olympic Winter Games, hosted several  thousand individual guests. Jet Set Sports donates thousands of complimentary tickets to Olympic Games events to Olympic Games volunteers, Olympic Games Aid and numerous other non-profit organizations. In addition Jet Set Sports has provided complimentary tickets and otherwise aided underprivileged youngsters, Paralympic athletes, art and culture programs and community-based organizations in every Olympic Games host city for which the company has provided hospitality services.
Salt Lake City Scandal
WinterSports2002.com, Thursday, July 20, 2000 - Welch, Johnson are indicted Olympic bid leaders Tom Welch and Dave Johnson were indicted on July 20, 2000 in U.S. District Court on felony counts involving what they did to bring the 2002 Olympic Winter Games to Salt Lake City. The indictment listed conspiracy, aiding and abetting, mail, wire and honest services fraud, and violations of the Travel Act. A grand jury handed up a 15-count indictment. The indictment alleges the conspiracy took place between February 1988 and July 1999 and among other things involved Welch and Johnson recruiting Alfredo LaMont, who was then the USOC director of international relations, to "secretly assist" the bid committee in defeating other U.S. cities in obtaining USOC support to be the host city of the Olympic Winter Games. The three counts related to violations of the Travel Act detail "overt acts " intended to influence current and former IOC members Sergio Santander-Fantini, Guirandou N'Daiye, Anton Geesink, David Sibandze, Lamine Keita, Pirjo Haggman, Slobodon Filopobic, Austin Sealy, Augustin Arroyo, Rene Essomba, Un Yong Kim, Zein Gadir, Charles Mukora, Bashir Attarabulsi, and Jean Claude Ganga.
According to the indictment, the two bid leaders: Secretly paid an official of the U.S. Olympic Committee to assist the Salt Lake Bid Committee in being chosen by the USOC as its candidate city. Personally diverted $130,000 in bid committee income.
Offered and paid $1 million to influence the votes of more than a dozen International Olympic Committee members. Prepared and executed a series of bogus contracts.
Falsified bid committee and organizing committee books, records and other publicly available documents to conceal their activities.
The indictment explains what federal prosecutors believe Welch and Johnson did with some $130,000 in cash received from an exclusive Olympic travel agency that is now a Salt Lake Organizing Committee sponsor. Jet Set Sports, a New Jersey-based company headed by Sead Dizdarevic, acknowledged in a prepared statement that contributions were made to the bid committee and were disclosed to federal investigators. "In order to assist a United States bid city and at the request of bid committee officials, Jet Set made contributions to the Salt Lake Bid Committee," the statement from corporate counsel Robert Boyar read. "Mr. Dizdarevic has fully disclosed and explained these contributions to the Department of Justice investigators and is cooperating with the ongoing investigation." Welch's attorney, William Taylor, based in Washington, D.C., said Wednesday that Dizdarevic did not want a record of the contributions. The cash payments were made between August 1994 and May 1995. "Everybody was concerned that they needed to raise as much money as they could, including Tom and Dave. When this guy offered to make a contribution, they were glad to have it," Taylor said. Even though the funds never showed up in bid committee records, Taylor said it was used only for authorized purposes, including reimbursing IOC members for their expenses. The company was signed earlier this year as a sponsor of the 2002 Winter Games in a deal worth some $20 million to SLOC. Since the 1984 Summer Games in Dizdarevic's native Sarajevo, the company has provided hotels and other hospitality needs for corporate clients. For the 2000 Summer Games in Sydney, Australia, Jet Set Sports has already sold out a $135,000 travel package that includes a car and driver provided through the Sydney organizing committee as well as special access to events.
Deseret News Archives - July 20, 2000                                                                              
© 2000 Deseret News Publishing Company When the Tom and Alma Welch domestic violence story hit the press in July 1997, Tom was thousands of miles away in Africa hunting big game. So much was being made over what had happened here in the United States—an incident that led to his resignation as president of the Salt Lake Olympic Organizing Committee—that no one paid attention to who he was with in Africa. Until now. Welch was hunting with Bosnian entrepreneur Sead Dizdarevic. Dizdarevic owns Jet Set Sports USA, a New Jersey-based company that’s a 2002 Olympic sponsor and provides “hospitality” packages for jet setters who attend Olympic Games. It was reportedly on Dizdarevic’s satellite telephone that Welch got the bad news—“The media has the story, all hell is breaking loose, you better get out of Africa and back home.” Three years later, Dizdarevic has popped up again—without being identified. Only the term “sponsor” is used in the 15-count indictment against Tom Welch and Dave Johnson, returned last week by a federal grand jury. The indictment lists four times that Jet Set gave envelopes stuffed with cash to Johnson and Welch. For example, this ominous, covert-sounding scenario: “In or about August 1994, defendant David R. Johnson met an employee of the sponsor at the Salt Lake International Airport where the employee gave defendant Johnson an envelope containing approximately $35,000 in cash.” Prosecutors alleged Welch and Johnson used the cash “for personal purposes.” If that allegation were proven in court, it could push a teetering jury toward the side of conviction—juries are more easily angered by alleged evil-doers putting actual cash in their pockets than work done for some long-term, not-yet-realized gain. Welch’s and Johnson’s attorneys, in a pre-emptive strike a day before the indictments were handed down, disclosed the Jet Set deal. But they insisted all the money was used for the bid effort, not their clients, and will be accounted for at trial. One source told City Weekly that Dizdarevic paid for Welch’s July 1997 African big-game hunt. Welch declined to confirm or deny. If the trip was paid for by the Bosnian, was it ethical and legal, or merely more of the play-according-to-international-rules that had hallmarked the bid process? Dizdarevic may have been wining and dining Welch, who would have been one of those negotiating Jet Set Sport’s sponsorship/ticket-selling contract with SLOC. Indeed there were two deals to cut, two financial figures to agree on: the amount Jet Set would pay for its sponsorship, and the cost and number of tickets Jet Set would get to sell to Dizdarevic’s well-heeled customers. Not all Salt Lake organizers appreciated Dizdarevic’s modus operandi. First, there were the rumors he had mishandled tickets when his company was launched, in order to pamper rich guests coming to see the 1984 Winter Games in his native Sarajevo. Second, there was the fact that he would try to snap up some of the best hotel rooms in downtown Salt Lake City, making it harder for bid workers to put up international reporters and their own dignitaries. “Don’t forget, every hotel room Sead gets costs the organizing committee money,” an organizer said. “If Sead gets 500 rooms or 1,000 rooms in the core of the city, then that means 1,000 members of the press or the broadcasters are pushed out further. And you’re going to have to move them in buses.” Third, there was the conflict-of-interest issue. Dizdarevic apparently enlisted the help of a Salt Lake destination meeting company, Sample Salt Lake, to help deal with hotels. But the husband of Sample co-owner Kathleen H. Barnes, Alan, is the SLOC staff member coordinating “interfaith relations.” Some fellow staffers were reportedly furious about the conflict. Kathleen Barnes—oldest daughter of LDS church President Gordon B. Hinckley—declined to talk about it. She would only say she had met Dizdarevic, knew him, and had done “very little” with him. Fourth, there’s the alleged kickback concern. “It’s a legalized scalping scheme,” one former organizer said of deals Jet Set cuts with Olympic organizing committees. “Sead sells a package and pays the organizing committee back 30 percent.” Jet Set Sports did not reach a sponsorship agreement with SLOC until May this year, long after Tom Welch was gone and Mitt Romney took the helm. The right to be official manager of corporate hospitality supposedly required a contribution from Jet Set of some $20 million cash. After Welch’s departure, SLOC chose to deal with Dizdarevic despite the fact that the organizing committee’s legal counsel, Latham & Watkins, must have known government prosecutors were looking into his payments to Welch and Johnson. And they had to have known Jet Set was linked to a conflict-of-interest controversy in connection with the upcoming Summer Games in Sydney. The Sydney press reported that the girlfriend of committee member Phil Coles resigned in connection with a conflict-of-interest dispute. Patricia Rosenbrock quit after it was publicly disclosed she was working for Jet Set at the same time her partner was on the Sydney Organizing Committee. Tom Welch told one Sydney paper he had recommended Rosenbrock for the post with Dizdarevic. Dizdarevic denied that, saying he preferred not to name the person who put them together. Jet Set was later drawn into a ticket controversy that stained the Sydney Organizing Committee, a controversy that prompted Australia’s prime minister to accuse the committee of a cover-up. A down-under publication reported that some buyers were paying up to four times face value for premium tickets. Meanwhile, Utah’s organizing committee won’t say if its deal with Jet Set Sports includes a kickback scheme. Romney, in an interview last week with City Weekly, said Jet Set did have the right to acquire tickets and the right to hotel rooms. “And in the case of Jet Set, it could entail a larger number of tickets because they are a travel agent and they’re actually providing a service for us and the community,” Romney said.
START broj: 87, Datum: 4/8/2002 Kako je Bosanac Sead Dizdarević postao kralj olimpijskih ulaznica
Za poznatu aferu podmićivanja u MOK-u, ovaj bivši Sarajlija kaže da je nešto najbolje što se dogodilo olimpijskom pokretu
Sarajlija Sead Dizdarević koji se još od održavanja ZOI u Sarajevu bavi prodajom ulaznica i smještajem gostiju u gradovima domaćinima ove manifestacije, prema pisanju američkih medija, sve je češće na udaru američke javnosti i sudstva zbog afera u koje je umiješan. Naime, Dizdarević je vlasnik agencije Jet set koja se bavi prodajom ulaznica za olimpijske igre i bio je zvanični domaćin - sponzor Olimpijskih igara u Salt Lake Citiju.
Današnjeg stanovnika New Jerseya, 1999. godine američke vlasti optužile su za reketiranje i pronevjeru. Nešto kasnije osumnjičen je i za učešće u poznatom slučaju podmićivanja članova MOK-a, kada su dvojica organizatora OI u Salt Lakeu isplatili milion dolara za favoriziranje. No, zbog saradnje s vlastima u ovom slučaju Dizdarević je dobio imunitet i nije sudski gonjen.
- Ovo je bilo najbolje što se dogodilo Olimpijskim igrama. Potrebna još jedna ovakva afera kako bi olimpijski pokret ponovno bio pravi pokret - rekao je Dizdarević nakon što je taj slučaj okončan.
Svoj nevjerovatan uspjeh, unatoč umiješanosti u afere, Dizdarević, tvrde Amerikanci, duguje navodno slučajnim poznanstvima sa suprugama, kćerkama ili djevojkama ljudi od uticaja u MOK-u i među organizatorima olimpijada. Prije održavanja igara u Sydneyu unajmio je kćerku lokalnog organizatora da mu pomogne u bukiranju hotela, a u Salt Lakeu je poslovao s Cathy Barns, navodno ne znajući da je ona kćerka Gordona B. Hinkleya, predsjednika i donatora Mormonske crkve, najutjecajnije u državi Utah.
Tada je njegova kompanija napunila 18.000 hotelskih kreveta, obezbijedila 132.000 obroka i odvezla oko 16.000 turista nakon zatvaranja Igara. Premda su klijenti zadovoljni njegovim radom, prozvan je monopolistom koji i po godinu dana unaprijed proda karte i rezerviše najbolje hotele za svoje goste. Trenutno je u fazi pregovora za bukiranje 550 kreveta i 750 soba za Olimpijadu u Torinu 2006. godine, a sprema se i za pregovore o organiziranju Olimpijskih igara u Pekingu 2008. godine.
Jet Set Sports CEO Testifies at Olympic Bribery Trial Nov. 25, 2003 John Daley Reporting At the Olympic trial today was testimony about a crucial issue in the case, 130-thousand dollars a top Olympic sponsor says he gave in cash to defendants Tom Welch and Dave Johnson. Prosecutors alleged the pair pocketed the money, but the defense team says the exchange will be explained later in the trial. On display at the Olympic trial was the world created by the ‘Lords of the Rings’--the royalty of the IOC--a world of cold hard cash, conflicts of interest, and, prosecutors say, corruption. One face of that world is Sead Dizdarevic, owner of Olympic sponsor Jet Set Sports, which sells pricey hotel and ticket packages. On the stand the Croatian businessman smiles and casually explains how, at their request, he gave former Salt Lake Olympic leaders Tom Welch and Dave Johnson 130-thousand dollars in cash in 1994 and '95. Dizdarevic, who was given immunity in exchange for his testimony, called the money a "business expense” and said it was handed off in envelopes at four prearranged meetings at hotels and airports.Also, on three occasions in '94 and once before the Lillehammer Games, the bid committee gave Dizdarevic 70-thousand dollars -- 45-thousand in checks -- to a Canadian Jet Set company called OL-CAL and another 25-thousand dollars Welch gave to Dizdarevic in a hotel lobby in Norway. Unclear from his testimony is who requested the exchange, Dizdarevic or the defendants. On cross-examination one of Welch's attorneys uncovers some funny business in Jet Set's accounting—checks the defense believes were doctored to hide any connection between Jet Set and Salt Lake. Blair Brown, Attorney for Tom Welch: "We certainly believe that Sead wanted to keep his contributions to the Salt Lake bid committee quiet unless and until they won. And that's why he went to great lengths to not have any paper reflecting the contributions to Salt Lake. Those were used for his tax returns and his books and records." Also today, former USOC official Alfredo LaMont wrapped up his testimony, which revealed another series of under-the-table deals that lead to federal charges of tax fraud. Alfredo LaMont, Former USOC Official: "It was my choice at all points in time. I had a choice. No one twisted my arm. Nobody forced me to do anything. That's what happened. I made a wrong choice and that's what it was." LaMont now awaits word on a possible sentence for his Olympic choices. Jet Set Sports did become a top Olympic sponsor for the 2002 Games thanks to an exclusive contract the company signed with the Organizing Committee, not while Welch and Johnson were there, but under then President Mitt Romney. Dizdarevic, who makes a 2 million dollar annual salary, testified that Jet Set made a 7 million dollar profit at the Salt Lake Games.

Olympic sponsor cooperating in bribery probe SALT LAKE CITY (AP) -- An Olympic sponsor acknowledged late Wednesday it was cooperating with federal investigators looking into $130,000 in cash payments given to Salt Lake's bid leaders.  Lawyers for Tom Welch and Dave Johnson believe the payments will figure in a barrage of grand jury indictments against them. No charges had been filed by Wednesday.  New York-based Jet Set Sports, a corporate ticket and travel agent for the 2002 Winter Games, made a series of cash payments to bid leaders totaling $130,000 from August 1994 to May 1995, according to Johnson attorney Max Wheeler.  He said the money was spent on bid expenses, a claim that brought a derisive scoff from a law enforcement official who would not elaborate.  Jet Set corporate counsel Robert Boyar issued a statement Wednesday confirming that company president Sead Dizdarevic made contributions to the Salt Lake bid committee at the request of bid officials. "Mr. Dizdarevic has fully disclosed and explained these contributions to Department of Justice investigators and is cooperating with the ongoing investigation," Boyar said. He did not immediately return a call for elaboration.  Jet Set is a broker of Olympic hospitality services. The company, also a sponsor at the 2000 Summer Games in Sydney, is selling an Australian package including tickets and lodging for up to $135,000 for two people. The company says on its Web site that it financed an expansion and took over management of a Japanese hotel for its customers at the 1998 Winter Games in Nagano. Dizdarevic made the cash payments to Welch and Johnson because he stood to "make a huge profit" as a Utah sponsor, Wheeler said.  Welch and Johnson can prove the money was spent on the bid effort, not to enrich themselves, said Wheeler, who nonetheless expects the Justice Department to allege the bid leaders kept the money.  "The $130,000 question is, where did the money go?" asked Paul Cassell, a University of Utah professor and former federal prosecutor who has closely watched the scandal unfold.  "Even if it seems fishy, the government has to prove the money went in Welch and Johnson's pocket for personal gain. That's straightforward fraud that a jury can understand. But again, the burden of proof is on the government. The defense doesn't have to prove anything."  Wheeler said the money was used to reimburse Welch and Johnson for travel and lodging expenses and gifts for International Olympic Committee members. The cash came in handy when banks were closed on weekends or at overseas meetings, he said.
 The funds were not recorded on the bid committee's books, deposited in its bank accounts or reflected on tax filings, prosecutors told defense lawyers. But Wheeler said he can't verify that assertion because he doesn't have the records.  Dizdarevic has hitched his business to the Olympics since the 1984 Winter Games in his native Sarajevo, Yugoslavia, now Bosnia-Herzegovina. Through the years, Jet Set has played host to national Olympic committees, corporate sponsors, broadcasters and others. It locks up hotels and restaurants in Olympic cities for its clients. Dizdarevic pledged $20 million in cash and services in May to renew an Olympic sponsorship.




[1] From Sports Business Journal Aug 30 – Sep 5, 2004, Steve Woodward,  www.jetsetsports.com

[2] From Sports Business Journal Aug 30 – Sep 5, 2004, Steve Woodward,  www.jetsetsports.com