Audit says MVR 29.6 million lost in FAM land sublease transactions
The agreement was cancelled on 17 September 2024 after rent was not paid and the project was not completed.
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An audit report has found that Football Association of Maldives (FAM) lost MVR 29.6 million from land allocated to the association for a football school project in Hulhumalé.
The land was allocated under a lease agreement signed between FAM and Housing Development Corporation on 11 July 2018. Under the agreement, 23,000 square feet of land was allocated for the construction of a football school.
The agreement was cancelled on 17 September 2024 after rent was not paid and the project was not completed.
The Auditor General's Office released a report on Wednesday examining transactions linked to the subleasing of portions of the land to other parties.
According to the report, FAM began subleasing sections of the land on 14 December 2021. A total of 15 sublease agreements were signed before the main lease agreement was cancelled.
The report states that FAM received MVR 52.2 million from the sublease agreements during this period.
However, the audit found that MVR 29.6 million from the transactions was not properly accounted for.
The report details the losses as follows:
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MVR 14.1 million was recorded through FAM stamps and receipts signed by officials but was not deposited into FAM accounts
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MVR 14.1 million was deposited into a FAM account and later transferred to private businesses and individuals
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MVR 1.4 million was deposited into a FAM account and withdrawn in cash on several occasions without records explaining the purpose
The audit report also identifies the positions of officials who signed the receipts related to the transactions. The report does not include their names.
According to the report:
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Receipts signed by the then Director of Finance of FAM accounted for MVR 9.9 million
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Receipts signed by the then President of FAM accounted for MVR 3 million
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Receipts signed by the then Secretary General accounted for MVR 1.2 million
The report also details transfers made from the FAM account after funds were deposited.
These include:
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MVR 8.9 million transferred to the account of MS Finance Currency Exchange Pvt Ltd, a company registered for foreign currency transactions
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MVR 2.8 million transferred to other private companies
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MVR 1.4 million transferred to several individuals
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MVR 0.9 million transferred to the account of the Director of Finance
The audit report also examined spending related to the football school project.
According to the report, the Ministry of Sports, Fitness and Recreation allocated MVR 31 million to FAM for the project.
FAM paid MVR 32.4 million to the contractor, although the value of the work completed was estimated at MVR 18 million.
The audit of the sports ministry covering the period from 2018 to 2023 also identified procedural issues in the project.
According to the report, funds for the project were allocated to the youth sector from the contingency budget and the work was not processed through the tender board as required under procurement rules.
The report also states that FAM awarded the contract after evaluating bidders other than the lowest bidder.
Investigations into corruption cases linked to former FAM president Bassam Adeel Jaleel are being conducted by the Maldives Police Service and the Anti-Corruption Commission.
Bassam has been convicted in two cases and is serving a combined prison sentence of 31 years.
