Olympic Museum Scandal Unfolds

(ATR) The IOC tells Around the Rings no IOC employees are said to be involved in an alleged embezzlement at the Olympic Museum in Lausanne – although three IOC staffers have been fired.

The IOC confirms to Around the Rings that three IOC employees were fired over embezzlement allegations at the Olympic Boutique, located in the Olympic Museum.

As first reported Thursday by 3 Wire Sports, the IOC believes it has discovered a scheme that lasted for as long as ten years, fleecing the museum gift shop for upwards of $2 million.

The former head of the museum shop is said to be in police custody.

IOC Director General Christophe De Kepper tells ATR that no IOC employee is accused of embezzlement.

That includes Thierry Sprunger, Director of the IOC Finance and Administration, responsible for supervising the museum accounts.

"I can confirm that Thierry Sprunger’s departure is not linked to the Museum embezzlement," IOC Director General Christophe De Kepper.

"The fraud was discovered by the IOC and we ordered a full investigation. On this basis, we took the corrective measures including dismissals, reorganization of the department and criminal complaint against the former manager of the shop. No IOC employee has embezzled any money," says De Kepper.

Sprunger resigned his post this week after returning to work following a month of sick leave. ATR understands Sprunger, an IOC employee since 1994, resigned, due to health reasons. Sprunger will leave the IOC next week.

IOC members contacted by ATR express their satisfaction for the way the museum scandal has been handled so far.

"I think the Director General took strong and decisive disciplinary action. It's an unfortunate incident but I think it washandled appropriately and it shows that the IOC has the right institutional mechanisms in place to handle these things in the right way," says Richard Carrion, chair of the IOC Finance Commission.

His commission meets Monday in Lausanne where the museum affair will be discussed.

Rene Fasel of Switzerland, like Carrion, a member of the IOC Executive Board, also meeting next week, tells ATR he was surprised by the venue for the alleged impropriety.

"The routine of the Olympic Museum made it possible to hide the embezzlement" he said.

"Who would think this would be a place to find trouble? But I think this has been handled quickly and properly by the IOC Director General," said Fasel.

Canadian IOC member Richard Pound agreed that while the correct steps are being taken, the situation should not have gone as long as it had.

"Clearly somebody should be going through the internal control process and saying how did we miss this over such a long period of time and also discuss it with the auditors, saying one of your jobs is to express a view on our financial statement and to form an opinion on the robustness of our internal controls.

"How is it between the two of us we seemed to have missed this for so long?" is the question posed by Pound.

He added this shows the IOC is not immune to ills that can strike any organization.

"All organizations are subject to the risk that there will be dishonest employees. You do what you can to minimize the risks," says Pound.

Paul Foster Leaves IOC

Unrelated to the museum controversy is the resignation of IOC protocol officer Paul Foster.

"Paul Foster has expressed for a long time the wish to develop his own activities. This is what he has decided to do and we wished him well on his future career as we will do next week for Thierry," said De Kepper.

Foster, who is Australian, joined the IOC after a similar posting with the Sydney Olympics.