Pay-off of over £1m alleged in Graf trial

STEFFI GRAF was under the spotlight yesterday as Mannheim prosecutors refused to comment on a report that they were about to bury legal proceedings against the world number one tennis player.

Case prosecutor Peter, Wechsung admitted rumours have been circulating since the beginning of the year that proceedings against Graf would be dropped in exchange for money Monday's weekly magazine Der Spiegel reported prosecutors would halt the case against Steffi against a payment of three million Deutschmarks (£1.25 million) from the 27 year old player. But Wechsung refused to take part in any discussion on the report.

And prosecutors were reportedly willing to agree to a deal despite the fact that just a week earlier, Horst Schmitt, once close to the Graf family, had implicated Steffi in the affair.

Wechsung said Schmitt confirmed he spoke to the Graf family at the time of his split with her 58 year old father Peter, who has been on remand in prison since August 2nd, 1995 on a charge of tax fraud.

Wechsung added Schmitt said he told Steffi at this time exactly where the unaccounted far money was being kept.

Schmitt added he wanted reassurance that he would not be penalised over in his dealings with the Grafs' money because Peter Graf had not given clear answers to his financial inquiries.

Schmitt, who has legal proceedings against him, added he had not given details of the taxable situation of money paid to foreign firms because he thought it was legal.

Peter Graf and his financial advisor Joachim Eckhardt, imprisoned since September 26th, are charged with not declaring 42 million Deutschmarks (£26.25 million) of Steffi's earnings. They thereby avoided paying nearly 20 million Deutschmarks (£8.1 million) of tax by diverting the money abroad.

The tennis champion has been in court several times, the last time being on July 15th. Wechsung at the time said there, was no new evidence to show Steffi had knowledge of the alleged fraud.