Malta Football Association president Norman Darmanin Demajo and two journalists have been acquitted from a libel suit filed by former football boss Joe Mifsud over an infamous deal with German giants Bayern Munich.

The case dates back to 2007 when foreign media reported that money paid to the MFA for a game organised by Dr Mifsud against Bayern Munich in 2000 was not routed to the association. It was also claimed that funds issued by Uefa to clubs were not all distributed by the MFA. 

BBC's Panorama and a German magazine had alleged that money that Dr Mifsud, as MFA president, was paid for a match went into a trust fund. However, the association did not have a trust fund at the time.

Mr Darmanin Demajo in 2008 had requested an investigation into contracts signed by Dr Mifsud, alleging corruption, misappropriation of funds and breach of the MFA statute.

Dr Mifsud then sued Mr Darmanin Demajo over the letter and filed a separate suit against  former Illum editor Kurt Sansone and journalist Mark Attard for running a story about it. Both cases were heard together. 

In his judgment today, Magistrate Francesco Depasquale said it had been proved that not all the Uefa funds to the clubs had been distributed.

As for the Bayern Munich match, the court observed that Dr Mifsud repeatedly negotiated and signed agreements on television rights and advertising rights on his own, in breach of the MFA statute. The agreements involved hundreds, possibly thousands of dollars.

The media alleged that in 2000, Germany, which was bidding to host the 2006 World Cup, had tried to buy the votes of four country representatives on the FIFA board, including Malta

Dr Mifsud used to conduct talks alone, with persons which he considered as part of his family.

He then presented the agreements for ratification by the MFA council.

The court said it could not understand how the council could ever object to ratification when the contracts would have already been signed by its president and would have meant much needed revenue to the depleted MFA coffers.

The MFA was paid $250,000 for the Bayern Munich match, but the court said it would have expected Dr Mifsud to submit the contract for council approval before it was signed, not after.

The court also said it found it strange that the figure of how much was to be paid was scribbled on the contract after it was actually signed, without signatures alongside it by the parties.

"This was a clear indication that the figure was written in after the contract was finalised and signed, and therefore it was not necessarily a reflection of the sum that may originally have been agreed by Dr Mifsud alone, without MFA authorisation, and without him having discussed it with anyone," the court said.

While Dr Mifsud had done a lot of work for local football, the court said that the fact that he negotiated deals on his own and did not seek prior approval before finalisation could lead people to conclude that Dr Mifsud had something to hide.

Such actions invariably raised doubts in the international media, more so as the media claimed there was corruption in the way Germany was chosen to host the World Cup in 2006.

At the time Dr Mifsud was a member of the Fifa Executive and it had been alleged that $300,000 were handed to various members of the Executive through advertising contracts through the same firm with which Dr Mifsud had, on his own, negotiated the Bayern match a few weeks previously.

The agreement was discussed in Dr Mifsud's private home in the presence of the head of the team presenting the German World Cup bid (Franz Beckenbauer) and when the total sum agreed was left on the original contract and scribbled in later in a copy.

In the light of all this, Mr Darmanin Demajo's comments and calls in relation to Dr Mifsud were fair, the court said.

German football legend Franz Beckenbauer.

During his testimony, Mr Darmanin Demajo said that while he was treasurer he had access to the association's contracts, the contents of which had made him suspicious about Dr Mifsud's dealings.

The timing of one contract coincided with the time when the FIFA executive committee, of which Dr Mifsud was a member, had to decide which country would host the 2006 World Cup.

Mr Darmanin Demajo said that, as time passed, his suspicions about Dr Mifsud were reinforced by the reports on Manager Magazine and BBC Panorama.

The media alleged that in 2000, Germany, which was bidding to host the 2006 World Cup, had tried to buy the votes of four country representatives on the FIFA board. These countries were Thailand, Tunisia, Trinidad and Tobago and Malta.  

Dr Chris Bonett was lead counsel in the case representing Mr Darmanin Demajo and Dr Veronique Dalli appeared for Mr Attard and Mr Sansone.