An audit report has found that around MVR 30 million has been lost in the agreement signed between FAM and Housing Development Corporation (HDC), where the Football Association of Maldives (FAM) subleased plots for the purpose of building international-level football training facilities in Maldives. The project was initially announced by the government.
As per the Audit Office's special audit report, plot slots worth 230,000 square feet were subleased out in Hulhumale' as per the agreement between FAM and HDC on 11th July 2018. FAM subleased the plots to 15 parties, with those transactions occurring between 2021 through 2024.
The audit report reads that FAM was supposed to get MVR 52 million as per the agreement. However, records have failed to show around 40 percent of the funds, with it having not gone to FAM, as was written in the audit report.
Of the money that has been lost, it includes MVR 14 million from cash and cheque payments for the rental of plots and floors with receipts that have been signed by some Maldives Monetary Authority (MMA) heads and payment vouchers. However, the money was not deposited into FAM's accounts. FAM's records do not show the transactions occurring with physical cash either.
Of those funds, receipts worth MVR 9.9 million were signed by former FAM Director of Finance Mohamed Ageel, who is currently being held in remand after being accused of helping to launder funds sent to FAM by FIFA. A receipt worth MVR 3 million was signed by then-FAM President Bassam Adeel Jaleel, with former General Secretary Hussain Jawaaz having signed a receipt worth MVR 1.2 million. Bassam is currently serving a 23-year prison sentence on charges of embezzlement and money laundering.
Of the money that was received when FAM had subleased slots for the construction of the football training facility, a total MVR 8.9 million from an additional MVR 14 million was deposited to the private account of a company registered in handling foreign currency exchange. MVR 5.1 million was also deposited into the account by other parties for the purpose of exchange transactions to other accounts.
The company in question is called MS Finance Currency Exchange Pvt Ltd. As per the Economic Ministry's business registry, the company shareholders are Ibrahim Ahmed and Nushrath Yoosuf.
A total of 13 USD transactions were processed between 2022 to 2023 on various dates. However, the audit report highlighted that none of those transactions were used to pay FAM, with FAM's records failing to show those transactions as well.
Of the MVR 5.1 million that FAM had received, money had been deposited to Ageel's account, seven private accounts and five company accounts. But the audit report noted that there was no documentation regarding the deposits to the accounts.
While an additional MVR 1.4 million had been withdrawn from FAM's account as cash, the audit report states that it is unclear as to whether the money was used for FAM's own purposes.
FAM subleased the plots around 90 percent below the market rate. The plots in Hulhumale' were subleased at a rate of MVR 2.9 per square foot. As per the audit report, if the market rate of MVR 20 per square foot was observed, FAM was to receive MVR 591 million within the time frame described in the agreement. The Audit Office estimates that FAM suffered a loss of MVR 524 million due to the sublease agreements.
