Swiss court officials, quoted in the British newspaper The Guardian, have alleged that a bankrupt company, ISMM-ISL, gave 211,625 euros (around 180,000 U.S. dollars) to Leoz, who has been in his post since 1986, in 2000 to win the image and audio rights for the 2002 and 2006 World Cup competitions.

"I never took part in any finance committee, nor in any financial matters for FIFA," Leoz told reporters in Asuncion. "I could hardly have taken part in negotiations with ISMM-ISL and even less influenced decisions," he added.

Leoz added that the CSF did not take part in negotiations on behalf of South American teams, that each federation negotiates freely, and that the CSF does not receive any percentage.

"Our income in terms of television rights comes from the Copa America and the tournaments we sponsor -- the Libertadores and the SudAmericana," Leoz said, restating that these are the only negotiations he can influence.

Swiss court officials are investigating two senior officials at ISMM-ISL on charges of fraud, fraudulent bankruptcy, and destruction of assets, according to the Guardian.

According to the paper, ISMM officials used Liechtenstein bank and its Virgin Islands partner to commit the fraud.

Separately, Paraguayan senator Juan Galaverna, from the ruling Colorado Party, has accused Leoz of pressuring referee Carlos Amarilla to favor a team in the Yparacai rural soccer league.

Galaverna said that Amarilla had ordered a penalty for an offside that did not happen, leading to the defeat of the team for which Galaverna's son is goalkeeper.

Both accusations have generated tension in Paraguay ahead of Thursday's visit by FIFA boss, Joseph Blatter; who will attend a ceremony to mark the 100th anniversary of Paraguay's Football Association.