Super League of Malawi (Sulom) blew K14 million on meetings in 2015 season a development that has raised eyebrows on the body’s spending habits when clubs are starving due to the country’s economic problems.
But Sulom general secretary (GS) Williams Banda said they would explain in detail how the funds were used during the annual general meeting (AGM) to be held in Lilongwe today.
According to a financial statement from January 1 2015 to December 31 2015 which the Weekend Nation has seen, the executive committee (exco) spent another K7 million on honorarium.
Sulom executive comprises 11 members—president, vice-president, general secretary, vice-general secretary, treasurer, legal adviser and five members.
The president and vice-president are entitled to K40 000 honorarium each per month while the other members get half the amount.
During meetings, each executive member is entitled to not more than K120 000 for travel, food and accommodation.
In 2015 Sulom had three executive committee meetings—one in Blantyre and the other two in Lilongwe. There were no seminars.
Yet the statement shows that the exco blew K21 million which is way above their entitlement.
The amount is double that spent on the same in 2014 season.
Sulom also spent K17 million on referees fees in 2015 up from K11 million which it spent in 2014 on the same.
K6 million was used to pay for 2015 AGM expenses, K2.2 million was used for stationery and printing expenses. Another K5 million was spent on travel expenses up from K4 million for 2014.
In total administration expenses shot from K43 million in 2014 to K59 million in 2015. Sulom revenue in the year under review increased from K42 million to K64 million.
The revenue was among others, from affiliation fees (K10 million), broadcasting rights (K15 million), FAM grants (K3 million), fines and penalties (K1m) and processing fees (K8 million).
TNM pumped in K56 million—K6 million for administration, K15 million for clubs subvention, and K35.22 million for end-of-season awards.
Receivables as at December 31 2015 were at K63 million while payables were at K37 million.
The payables show that Sulom owes some few clubs with Nyasa Big Bullets debt being the highest at K15 million.
Silver Strikers interim general secretary Thabo Chakaka Nyirenda said the authenticity of the statements was questionable.
“Firstly, nobody wants to own these financial statements. They are neither signed by Sulom nor the auditors. Apart from the stamps which anyone can have access to, there were supposed to be signatures. It is, therefore, difficult to trust such documents,” he said.
He called for the rejection of the statements if Sulom fails to explain itself.
“As for the contents of the financial statements, you don’t have to be an accountant to see that something is wrong here. As Silver we are appalled by some of these expenditures. How come an executive of 11 people sent K14 million on meetings?
“How come Sulom owe some clubs as much as K15 million, for what? We would like Sulom to give us an explanation on how these funds were used. Failing to do so, the way forward is to institute an internal inquiry on how such spending was authorised,” Chakaka Nyirenda said.
Azam Tigers chairperson Sydney Chikoti said they were looking forward to hearing from Sulom on how the finances were used.
“We expect the executive committee to give us details on how the money was used. That is imperative,” Chikoti said during the week.
Mzuzu University (Mzuni) FC general secretary Khumbo Kumwenda said he would wait for the AGM to hear Sulom’s response to questions raised.
“We have noted such irregularities and we will definitely raise them at the AGM,” Kumwenda said.
However, Banda said the clubs are free to seek explanations or verify the expenditures.
“Everything will be cleared at the AGM,” he said.
Johnson and Wilson audited the financial statements and in their opinion, the report gives a true reflection of the financial position of Sulom.
“We have audited the accompanying financial statements of Super League Association of Malawi, which comprise the statement of financial position as at 31 December 2015, and the statements of comprehensive income, changes in members’ funds and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes set out on pages 4 to 13.
“In our opinion, these financial statements give a true and fair view of the financial position of Super League Association of Malawi as at 31 December 2015 and its financial performance and cash flows in accordance with International Financial Reporting Standards,” the auditors’ statement reads.
Ironically, in March 2015, the 2014 financial statements were rejected during the elective AGM in Salima. n