Cash withdrawals from FAM accounts were made to facilitate misappropriation of funds: Audit

A special audit into the leasing of land allocated to the Football Association of Maldives (FAM) for a training facility has revealed that the association accepted rent in cash and withdrew funds deposited into its bank accounts in cash. The audit suggests these actions were likely taken to facilitate the misappropriation of those funds.

The audit highlighted that these transactions were not conducted transparently within the Football Association of Maldives' (FAM) financial system.

Regarding the details of this case, it has been noted that a portion of the funds generated by subleasing land slots—originally allocated to the Football Association of Maldives (FAM) for the establishment of a football training facility—was collected in cash. Furthermore, it was observed that substantial amounts were withdrawn in cash from funds deposited by various parties into the association's bank account. These actions were reportedly carried out in a manner that hindered the secure conduct of financial transactions.

As a member of the Fédération Internationale de Football Association (FIFA), the Football Association of Maldives (FAM) is mandated by FIFA’s statutes to operate under robust governance principles. Furthermore, under the FIFA Forward Program 2.0 regulations introduced in 2019, member associations are strictly prohibited from utilizing financial assistance provided by FIFA in the form of cash transactions.

Although the funds generated from leasing land slots were not directly linked to FIFA funding, the Football Association of Maldives (FAM) management remained responsible for overseeing these finances through a robust internal control system, in accordance with FIFA regulations. However, it has been revealed that the management failed to fulfill this responsibility in these transactions.

Furthermore, it has been noted that there is a complete lack of documentation to verify transactions conducted using cash withdrawn from bank accounts. The report states that these actions appear to have been intended to obscure the transparency of financial dealings and facilitate the misappropriation of funds. These findings have been highlighted as significant concerns regarding the financial management of FAM.

The audit report states that the government, through the Housing Development Corporation (HDC), authorized the Football Association of Maldives (FAM) to lease 12 blocks for commercial purposes from the land allocated for a football training facility in Hulhumale'. Between 2021 and 2024, FAM entered into 13 sub-lease agreements with various parties to rent out different slots within these blocks. Additionally, two sub-lease agreements were established to rent out three floors of an accommodation block constructed on the premises.

Under these agreements, parties leasing land slots and building floors are required to pay a total of MVR 56,150,354 in rent to the FAM by the end of 2025. FAM records indicate that MVR 52,210,000 of this amount has already been received and acknowledged by the association. However, the audit highlighted that MVR 29,598,200 of these funds is missing and was not utilized for any of the association's operations.

Regarding the details of the missing funds, the missing amount includes 14.1 million Rufiyaa paid in cash and checks by five parties who leased land slots and building floors. These transactions are documented through receipts and payment vouchers bearing FAM official stamp and the signatures of senior officials, confirming that the funds were received by certain top-level executives of the association.

Furthermore, it has been revealed that MVR 14,074,060 from the funds deposited into FAM’s bank accounts as rent was transferred to the accounts of private companies and individuals. Records also indicate that a total of MVR 1,424,140 was withdrawn in cash from the association's bank accounts on various occasions.