FAM’s failure to approve audited accounts and financial statements as well as the 2020 budget during the association’s elective general assembly on Saturday means that it cannot access Fifa funding, it has emerged.
During its annual general meeting (AGM) held at Sunbird Nkopola Lodge in Mangochi, Football Association of Malawi (FAM) decided to defer all agenda items except election of the new executive committee, on security grounds.
This followed tensions between rival camps of the re-elected president Walter Nyamilandu and his immediate past first vice-president James Mwenda.
Nyamilandu confirmed that in absence of approved financial statements and audited accounts, the local football governing body cannot access Fifa funding.
“We need to call for an EGM [extraordinary general meeting] as soon as possible, otherwise we will not get any funding from Fifa if we do not get our accounts approved [by the general assembly].
“However, even though the general assembly postponed the agenda items to do with approval of the audited financial accounts and approval of the budget, we are still within the window period for submission.
“In this regard, we are working on having our first executive meeting in mid-January and holding the postponed AGM end of February. As demonstrated in the past, we are committed to holding the general assembly early next year to comply with corporate governance principles.”
Nyamilandu, who was re-elected for the fifth term, was confident that FAM will comply with the Fifa funding requirements.
“Our record is very clean with audited accounts having been issued with unqualified financial statements for the past 15 years that I have been in office. We have a clean bill of finances that has earned the praise and recognition of Fifa.
“We, therefore, have every good reason to hold the general assembly to comply with the Fifa funding requirements and to observe best practice in the administration of association football,” he said.
FAM general secretary Alfred Gunda said the executive committee will have to invokethe EGM as stipulated in the statutes to approve financial statement, audited report and detailed budget for 2020 so that FAM can asses full funding from Fifa.
“The powers to call for the EGM are in the affiliates and the executive committee. For this one, it’s the first executive committee which will call for the EGM, because the deferred agenda items are key elements of the general assembly,” he said.
Gunda said they will report to Fifa on the delayed submission and approval of financial statement, audited report and detailed budget for 2020.
“The good thing is that all stakeholders were already involved in the process of producing them and what was remaining was for the general assembly to approve them as a statutory requirement,” he said.
Gunda downplayed fears of FAM failing to access funds for its various projects for failing to approve the audited reports.
“Of course, the way it is we cannot implement things that have not been approved by our assembly. We can only get part of the money from Fifa and not everything. But we reach that extent. We know of our friends who are in those situations. It’s not a good situation to be in,” he said.
According to FAM statutes, Article 31, the executive committee will have to call for the EGM to be convened within 45 days.
Soccer analyst Charles Nyirenda observed that it is high time FAM came out clear that only elections will be on agenda at the elective annual general meeting.
“This is the second time this has happened. If this is going to be the norm, then it is better for FAM to just make it official. It will help in terms of planning,” he said.