Scotiabank comfortable with CONCACAF progress but reserves right to end ties

Fri Dec 11, 2015 8:56pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By John Tilak and Euan Rocha

TORONTO Dec 11 (Reuters) - Canada's Bank of Nova Scotia is comfortable with progress CONCACAF has made after pushing the regional soccer body to make several changes but reserves the right to pull its sponsorship if it does not see complete transparency, a source familiar with the company's thinking said on Friday.

The comments come after the arrest last week of acting CONCACAF president Alfredo Hawit, and the May arrest of former president Jeffrey Webb on corruption charges. CONCACAF controls soccer in the Caribbean, North America and Central America.

Since the first indictments, Scotiabank, as Canada's No. 3 bank is known, has called on CONCACAF to work with advisers, improve its financial systems, disclose more information and make changes in its corporate governance practices, said the source, who spoke on condition of anonymity because of the sensitivity of the matter.

"We can't forget the fact that they need to clean up their processes," the source said. "Organizationally, their turnaround is incomplete. They are still in the early days of the turnaround."

Scotiabank is pushing CONCACAF to have audited financial statements, the source said.

"Our point of view is very simple. It is nonnegotiable," the source said. "They need to be completely transparent about how they operate their business or we don't want to be part of it."

Scotiabank recognizes there are still many unknowns, the source said, adding that "more could come out."

Another concern weighing on Scotiabank is reputational risk, which banks say are a big issue for them.   Continued...