Financial year change hits FAM
TFhe planned transition to a new financial year starting from April 1 has put Football Association of Malawi in an awkward position with a K100 million shortfall in its subvention.
FAM has since lodged a complaint to the Malawi National Council of Sports over the national football team’s reduced subvention from K300 million to K200 million for the 2021/22 financial year.
The transition has also affected several government ministries, departments and agencies.
Government is changing financial year from July to June to April to March; hence, this year will have nine months.
The allocation cut comes at a time when the Flames are supposed to play three 2022 Qatar World Cup qualifiers between this month and October.
FAM president Walter Nyamilandu yesterday said they are not amused with the development.
He said: “We have lodged a compliant to Sports Council on why the allocation has been reduced this year when we are facing high demand of national team activities.
“Our coffers are dry at the moment having used all sources of funding from Fifa and FDH Bank plc Sponsorship towards the Flames.”
He said the remaining funds from government subvention are not sufficient for the World Cup first two legs against Cameroon and Mozambique, having used part of the funds for the Cosafa Cup tournament.
Said Nyamilandu: “Sports Council released K120 million as a remainder of funds to be used for the World Cup September fixtures.
“We have had to divert funds from our development programmes to fulfil the last fixture against Mozambique in South Africa.
“We are facing a crisis situation to complete remaining fixtures unless an intervention is made to bail us out.”
He said FAM spends on average K120 million per match.
Sports Council spokesperson Faith Mtonyo-Mlauzi yesterday said she needed time to consult on the matter.
But a source from Sports Council said FAM’s allocation cut is due to the change of the financial year.
Football analyst George Kaudza Masina said government’s move to reduce the funding is worrisome considering the Flames’ crammed fixtures.
