Birmingham back pair arrested in corruption probe

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Managing director Brady and chairman Sullivan, who had spent five-and-a-half hours in Bishopsgate police station on Wednesday being interviewed by City of London police before being bailed, were again pointing the finger of suspicion at football agent Willie McKay.

The Birmingham pair's explanation for their arrest on suspicion of conspiracy to defraud and false accounting was that it related solely to tax matters — PAYE and National Insurance contributions — involving two foreign players and a football agent from 2002 and 2003 transfers.

The footballers concerned were both McKay players; Senegal defender Aliou Cisse, who joined Birmingham from Paris Saint-Germain for £4.5million in July 2002 and international teammate Ferdinand Coly, who arrived at St Andrew's in January 2003 on a free transfer from Lens but played only one League game — a 4-0 home defeat by Arsenal — and one FA Cup tie.

When police raided St Andrew's on March 19 and took away documents, Birmingham said they related to Cisse's move to Portsmouth for £300,000 in 2004, which remains one of the 17 transfers Lord Stevens was unable to sign off following his Premier League bung inquiry.

Sullivan said: "I'm shocked by the whole thing. The police statement was very unfair. It is to do with two foreign players and the PAYE on those players. This is a complicated tax matter.

"We answered every single question they put to us. We have absolutely nothing to hide. We have done nothing wrong and we think in due course this will be proven."

Birmingham had said in an official statement: "The investigation is focusing on payments to a football agent and two players dating back to 2002-2003. There is absolutely no allegation that any director or the club has benefited financially from any of this activity.

"We wish to make it plain that David, Karren and Birmingham City deny absolutely any wrongdoing."

Despite the vehemence of their denials, the fact remains that Sullivan and Brady have joined a list of nine on bail that includes Portsmouth manager Harry Redknapp, Pompey chief executive Peter Storrie, former Portsmouth chairman Milan Mandaric and McKay.

And the City of London economic crime unit, who are running this investigation independently of any other football inquiry with far greater powers at their disposal, do not have to arrest suspects in order to talk to them. There have to be reasons for the arrests and bail conditions.

McKay believes he is the victim of a witch-hunt and has continually denied any wrongdoing. He makes no secret of lending money to Senegal World Cup star Cisse, who suffered tax problems after losing his family in a ferry disaster.

Birmingham shares on the AIM market were suspended when their City advisers, Shore Capital, became dissatisfied with the initial explanation given for the arrests. However, following the detail that emerged during the day, the shares went back on the market.