Fifa is facing more controversy after it emerged that the executive it has appointed to take charge of the London 2012 football tournament is still under investigation over alleged bribery.

Issa Hayatou was selected for the job despite a continuing International Olympic Committee investigation into the allegations contained in Panorama's exposé of "Fifa's dirty secrets" last year.

The programme alleged that Hayatou was one of several executives who took bribes from Fifa's now-defunct marketing firm ISL in the 1990s. Hayatou was accused of receiving £10,000.

Hayatou immediately denied the allegations and insisted the money was a payment towards the Confederation of African Football's 40th-anniversary celebrations. However the IOC, of which Hayatou is also a member, launched an investigation via its ethics commission, stating: "The IOC has zero tolerance against corruption."

An IOC spokesman has now confirmed that this inquiry continues, saying: "The ethics commission is independent but my understanding is that the investigation is still continuing."

Fifa chose Hayatou to replace Korea's Chung Mong-joon as head of Fifa's Olympic committee, and also appointed him chairman of the Goal Bureau, which distributes Fifa money for development projects. Hayatou takes over the latter role from Mohamed Bin Hammam, the former president of the Asian Football Confederation, who has been banned for life from the sport for bribery.

Hayatou, from Cameroon, has also been a member of the IOC since 2001. He chaired Fifa's Olympics committee from 1992 to 2006.