Formula One chief Bernie Ecclestone has admitted to a court in Munich that he did pay money to former banker Gerhard Gribkowsky, but has insisted that the money was to ensure he did not make allegations about his tax dealings.
Ecclestone took to the witness stand in the Munich court on Wednesday as part of a two day testimony in the trial of Gribkowsky.The German banker is accused of accepting a 'bribe' of some $44 million from Ecclestone in return for him undervaluing a share in Formula One during the sale of BayernLB's stake in the sport back in 2006.
Ecclestone admitted to the court that he had paid the money, but insisted that the payment had been to make sure the banker did not do "silly things" with regards to allegations over his tax status.
The FOM oligarch has always insisted that the money was not a bribe, and was not linked to the sale of Formula One's commercial rights.
"I had no alternative at the time," Ecclestone told the court according to the BBC website.
He added: "The only alternative was that the British tax authorities followed a case that would have been very expensive for me.
"The tax risk would have exceeded £2 billion. I paid him to keep calm and not to do silly things. I knew he wanted to start a business."
Ecclestone himself cannot face prosecution as part of the current trial, as his testimony grants him immunity, but could be charged at a later date should he be found guilty of any wrongdoing.
With regards to his concerns over his tax status, he suggested that he believed his dealings were above board, but admitted that he felt he could not "take the risk" over the issue.
"I don't think they could ever have proved anything," he was quoted as saying by the Daily Telegraph, "But I couldn't afford to take the risk. Simple as that."
The Gribkowsky case is part of a number of investigations currently ongoing into the 2006 sale to CVC Capital Partners, F1's current owners, and Ecclestone himself.
A separate civil case in the UK from the Constantin Medien company is pursuing lost revenue from the purported 'undervalued' sale of their former stock in F1 by BayernLB to CVC.
Meanwhile, last weekend the HM Revenue & Customs office suggested that the matter of Ecclestone's tax status was "something that needs to be looked into at".
The tax issue itself centres around Ecclestone's offshore Bambino family trust, which was used to pay part of the money to Gribkowsky.
Should Ecclestone be found to have a controlling interest in the trust, he may be liable to a significant tax bill from the UK.
Ecclestone will take to the stand in court in Germany again on Thursday, to conclude his testimony.
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