Audit Reveals MVR 14.10 Million in Cash and Checks Missing from FAM
An audit report has revealed that MVR 14.10 million, generated from leasing a portion of land allocated to the Football Association of Maldives (FAM) for a training facility in Hulhumale', was never deposited into the association’s accounts. Although former FAM officials issued signed receipts acknowledging the funds, there are no records detailing how the money was utilized. Furthermore, the audit highlighted that over MVR 14 million deposited into FAM accounts was subsequently transferred to various individuals and private companies without any supporting documentation.
While funds from FAM have gone missing, records show that the organization's former leadership signed off acknowledging the receipt of those funds. | Mihaaru | mihaaru
A special audit report by the Auditor General’s Office into the leasing of land allocated to the Football Association of Maldives (FAM) for a training facility in Hulhumale' has revealed that MVR 14.10 million is missing. The report states that this discrepancy involves funds documented in receipts and payment vouchers purportedly issued to the FAM in the form of cash and checks.
The report states that there is no evidence the Football Association of Maldives (FAM) received 14.10 million Rufiyaa, despite receipts and payment vouchers claiming the funds were paid in cash and checks. It further notes that these funds are now considered missing.
According to the audit report, documents bearing the Football Association of Maldives (FAM) official stamp and the signatures of its senior officials were submitted, claiming that the association had received 14,100,000 MVR in outstanding rent payments.
The audit revealed that the former President, former General Secretary, and former Director of Finance of the FAM had signed receipts and payment vouchers acknowledging the receipt of these funds. However, auditors noted that no portion of this money was ever deposited into the FAM’s bank accounts. Furthermore, there are no records in the cash registers or any other documentation to indicate that the funds were received in cash or utilized for the organization's expenses.
Furthermore, the audit revealed that MVR 14,074,060 from funds deposited into the Football Association of Maldives (FAM) bank accounts under sublease agreements was transferred to the accounts of various private individuals. This includes MVR 8.98 million deposited into the account of a private company engaged in foreign currency exchange. Regarding the foreign currency transactions, the audit noted that during 2022 and 2023, funds were transferred via 13 separate check transactions to the bank account of MS Finance Currency Exchange Private Limited, a private company involved in the money exchange business.
However, records from the Football Association of Maldives (FAM) do not indicate that the company provided any services to the association, nor is there any evidence of transactions necessitating payment to the firm. Furthermore, FAM’s official documentation lacks any record clarifying the purpose behind these fund transfers. The money was deposited into the company’s account on dates closely coinciding with the receipt of land slot rental payments into FAM’s own accounts.
The audit report states that since the Football Association of Maldives (FAM) generates income in foreign currency, there is no documented justification for transferring such substantial amounts of Rufiyaa to a third party for dollar purchases. Instead, these transactions appear to have been conducted with the intent of obtaining illicit gains from the rental income of land slots allocated to the FAM. While the recipient company claimed these transfers were part of currency exchange transactions, the audit found that no corresponding foreign currency was ever deposited into any of the FAM’s bank accounts. Furthermore, there are no records within the FAM confirming the receipt of these funds or their equivalent in foreign currency.
The audit report further states that MVR 5.08 million was transferred to the accounts of private individuals and various companies without any supporting documentation or clear business justification. Additionally, the audit highlighted that there is no evidence to confirm that MVR 1.42 million withdrawn in cash from the bank account was utilized for the official purposes of the FAM.
