Chronicle Editor
Ricky Zililo, Senior Sports Reporter
A FORENSIC audit into the Zimbabwe Football Association financial records has identified financial leakages amounting to almost US$2 million and ZW$112 million.
The loss of revenue is from selected areas giving the impression that a full-scale audit would unearth even more rot.
The partial audit covers the period between December 1, 2018 and November 21, 2021.
The draft audit report that is circulating on social media leaked on Sunday, two days after it was reportedly given to Zifa board members to study it ahead of the October 29 extra-ordinary general meeting.
BDO Zimbabwe Chartered Accountants, acting on the instruction of the Zifa restructuring committee conducted the five-month long investigation at the end of September.
The unaccounted for US$2 million and ZW$112million are the major highlights of the investigations that noted irregularities as Zifa made payments without proof of receipt for goods, failed to account for cash withdrawals and incurred expenditure without supporting documents.
According to the leaked report, Zifa officials reportedly misrepresented to members that it was illegal to pay Covid-19 proceeds in foreign currency and then transferred the funds into their accounts at the then bank rate of US$1: ZW$82.56.
However, according to section 6 of Statutory Instrument (SI) 85 of 2020, which was the ruling at the time, entities were permitted to make payments in US$ using free funds.
The conversion of grants to local currency resulted in loss of value to the beneficiaries.
According to exchange rates which were obtaining in the market on 19 August 2020, the affiliates lost about $9 248 560 or US$112 022 because of Zifa’s conversions to local currency.
No explanations were given to investigators by the Zifa board members involved in the transaction as to why they converted the money.
While clubs and other affiliates were paid in local currency, the then Zifa board paid themselves US$100 000 in hard cash. The association’s president Felton Kamambo got US$20 000, the board member finance who assumed the vice-president’s role Phillemon Machana walked away with US$18 000 while the other four board members Farai Jere, Sugar Chagonda, Chikosi and Bryton Malandule each got US$15 500.
However, no information was given to forensic investigators to show how and for what purpose the board members were paid.
From the US$1,8m that came from Fifa and Caf as solidarity grant to be used to resume competitions after Covid-19, US$194 000 which was supposed to be paid to referees, coaches transport, referees’ expenses, had not been paid at the time of the investigation. The funds were no longer in Zifa’s bank accounts as they were used for other purposes. No explanation was given as to why the beneficiaries were not paid and how the funds were used.
Contacted for comment, Zifa acting general secretary Xolisani Gwesela said: “We will comment about the audit report at an appropriate time. It (forensic audit report) is part of the agenda for the Zifa extra-ordinary meeting to be held on October 29.” — @ZililoR
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