South Africa has denied paying a $10m bribe to secure the 2010 World Cup, in the wake of a US inquiry into corruption at world football body Fifa.

Sports Minister Fikile Mbalula said the money in question was above board and intended to support football in the African diaspora in the Caribbean.

The Fifa scandal erupted last week when US prosecutors indicted 14 people.

On Tuesday, president Sepp Blatter said he was to step down, just days after he had been re-elected.

Of the 14 indicted by the US on charges of racketeering and money laundering, seven were senior Fifa officials, including two vice-presidents. The seven were arrested in Switzerland as they awaited the Fifa congress and are currently awaiting extradition to the US.

The US justice department alleges the 14 accepted bribes and kickbacks estimated at more than $150m (£97m) over a 24-year period.

US officials quoted in the New York Times also said on Tuesday that Mr Blatter, 79, was under investigation as part of the inquiry. They said they hoped some of the Fifa figures charged would help to build a case against him.

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