Tomorrow, Bernie Ecclestone is set to go on trial over allegations that he had paid $44 million in bribes to facilitate the 2005 sale of Formula One. Bloomberg noted that Ecclestone has already been found by judges in two countries to have made illegal payments to former executive Gerhard Gribkowsky at Bayerische Landesbank. The news agency believes that the trial, which will be held in Munich, could put an end to Ecclestone's reign as president and chief executive officer of the company famous for its high-octane automobile races.
Bloomberg said that Ecclestone has been plagued with the corruption scandal following the arrest of Gribkowsky three years ago. Gribkowsky , who is the German bank's former chief risk officer, was convicted of taking bribes in 2012 and was sentenced to eight and a half years in prison. Gribkowsky's management with the lender's interest in Formula One had allowed him to receive $44 million in bribes to steer the sale of his former employer's 47% interest in F1 to CVC Capital Partners Ltd, the former bank executive said. Moreover, he had divulged that he had agreed to a sham contract in which the F1 boss received a kickback in return.
The news agency said that the panel of judges who have heard Gribkowsky's case will be the same one who will make decision about Ecclestone's fate at the trial tomorrow. The trial is expected to last for a non-consecutive 26 days through September. Bloomberg said that Ecclestone could testify in the first two days in the trial, which will be tomorrow and on May 2nd.
Meanwhile, Ecclestone's camp have retained the F1 chief's innocence, and said that he was merely a victim of a shakedown by Gribkowsky. Gribkowsky allegedly threatened Ecclestone that he will tell British officials about the latter's family trust.
A more pressing concern for F1 is that there is no obvious successor should Ecclestone need to step down, according to Cranfield University professor of business strategy Mark Jenkins. He said about Ecclestone's business management style, "The concept of a succession plan is an anathema to him."
