Court orders FAM to pay MVR 1.5 million in compensation to STO

Civil Court yesterday ruled in absentia that Football Association of Maldives (FAM) pay MVR 1.5 million in compensation to the State Trading Organization (STO) for failing to organize the South League as part of the Dhivehi Premier League for the southern atolls, which was sponsored by STO.

Due to unsuccessful attempts to deliver the charge sheet and documents to FAM, the court had also issued a public summons for a representative of FAM to appear. When this attempt also failed, the court determined that FAM had defaulted and gave its verdict in their absence.

STO said in court that the company expressed interest in the South League Sponsorship Proposal received from FAM in September 2022 and later signed a sponsorship agreement in October.

Although funds were given three times in installments under the agreement, the tournament, which was scheduled to commence on December 4 was never organized. FAM had neither announced a new date nor responded to the letter sent by STO requesting clarification on the matter, said the company.

According to the agreement, any violation of its clauses or the country’s laws grants STO the right to annul the agreement. If FAM is found in breach of the agreement, they are required to repay the sponsorship funds to STO within 15 days.

STO, on December 2023 issued a notice to dissolve the agreement, citing FAM's failure to commence the tournament on the agreed date and the absence of a proposed alternative date. The notice also mandated that FAM repay the sponsorship funds within a maximum period of 15 days.

However, FAM remained unresponsive, prompting STO to take the matter to court. In light of these events and the documents submitted by STO, the Civil Court has ordered FAM to settle all payments by September 15 at 12:00 hrs.

Police have been investigating several other cases where FAM leaders are accused of exploiting donations and sponsorships received by the association. FIFA also suspended Bassam Adeel Jaleel, former President of FAM from all football activities due similar allegations.

FAM is currently overseen by a Normalization Committee appointed to manage its governance. The key responsibilities assigned to the committee by FIFA include recovering lost funds, addressing the association's debt crisis, and collecting financial statistics.

FAM has been involved in several other court cases over unsettled payments and has additional unresolved disputes that have not yet reached the court. The association has also been accused of withholding salaries and allowances from players and referees.