According to reports across media, then president Thabo Mbeki and foreign minister Nkosazana Dlamini-Zuma approved the payment which the authorities again insisted on Friday was for a legitimate development project in the Caribbean.
Bidding process for the 2018 and 2022 World Cups was criticised by its own investigator.
Senators call for reforms of US soccer body at FIFA corruption hearing
Swiss authorities are examining development grants made by FIFA around the world as part of their investigation.
History is not likely to be so kind to the 79-year-old Swiss, who only recently compared himself to a mountain goat that keeps "going and going and going and cannot be stopped." Instead, his name is likely to be associated with the succession of corruption scandals which occurred on his watch.
Almost exactly four years to the day since former FIFA vice-president Jack Warner stood in the lobby of the Baur au Lac hotel and warned FIFA a "football tsunami" was about to hit it, his words have finally came true.
US prosecutors may find it difficult to get a number of the people they have charged in the FIFA bribery scandal to face the music.
A source close to FIFA said that as Blatter has not been arrested, charged or indicted, it would probably be for him to decide whether he stays in his post until February, when he is due to step down.
A Swiss national who has run soccer's powerful governing body for the past 17 years, 79-year-old FIFA boss Sepp Blatter has now for the first time become the focus of a criminal investigation.
As the Concacaf (North America, Central America and the Caribbean federations) Gold Cup kicked off on Sunday morning (July 07 ET) at the Rose Bowl, in Pasadena, California, Concacaf president and FIFA vice-president Jeffrey Webb spoke with Siddhanta Pinto over the telephone from Los Angeles.