Audit Finds MVR 29.6 Million Unaccounted for in FAM Land Lease Revenues

A special audit has found that MVR 29.6 million received by the Football Association of Maldives (FAM) from the sublease of land in Hulhumalé cannot be accounted for, raising concerns over the management of funds generated from a football training facility project.

The audit examined revenues from land allocated to FAM by the Housing Development Corporation (HDC) in 2021 to establish a football training facility. Part of the land was subleased for commercial use, with the association expected to receive a total of MVR 56 million by 2025 through the agreements.

However, the report stated that only MVR 52 million was received and accepted by FAM over the four-year period reviewed.

Of the money received, MVR 29.6 million was found to have no clear record of use. According to the audit, MVR 14.10 million was recorded through receipts and payment vouchers bearing FAM stamps and the signatures of officials who allegedly accepted payments in cash and cheques from five tenants leasing land plots and building floors.

Special Audit of Sub-Leasing of Slots from the Land Allocated to FAM for the Football Training Facilityhttps://t.co/GTFnv0BcIS pic.twitter.com/i5ZJqJQjsz— AGO (@AuditMV) March 4, 2026

Receipts submitted by FAM officials show that MVR 9.9 million of this amount was received by the then FAM Director of Finance. The remaining MVR 3 million was received by the FAM President at the time, while MVR 1.2 million was received by the then Secretary General.

Another MVR 14.07 million collected from rent payments was deposited into FAM bank accounts but later transferred to accounts belonging to private companies and individuals. The audit report said MVR 8.9 million of these funds was deposited into the account of MS Finance Currency Exchange Pvt Ltd, a private company registered to buy and sell foreign currency.

Auditors said it is unclear whether MS Finance provided any foreign currency trading services to FAM in exchange for the funds. The report noted that FAM is an organisation that earns foreign currency through international football activities and stated that the transfer of such a large sum to a private company raises concerns that the funds may have been sent for illegal gain.

The remaining MVR 5 million was deposited into accounts belonging to the then FAM Director of Finance, five private individuals and five companies. The audit report said there are no documents indicating the purpose of these transfers.

The audit also found that MVR 1.4 million was withdrawn from FAM bank accounts in 2022 and 2023, with no records showing that the money was spent for the association’s purposes.

The report further highlighted issues related to the leasing arrangements for the land allocated for the football training facility. According to the auditors, a total of 74,958 acres of land allocated for the development and operation of the facility and subleasing is expected to generate approximately MVR 66.5 million in advance payments under agreements signed by FAM.

However, the association rented the slots at an average rate of MVR 2.91 per square foot per month. The audit noted that the market rate at the time was MVR 20.23 per square foot, resulting in an estimated loss of MVR 524,098,066 to FAM over the duration of the agreements.

The report also stated that under the first amendment to the agreement dated 7 December 2022, FAM is required to pay land rent to HDC for the area used for commercial purposes. However, the association has not made the required payments. As a result, MVR 10,528,598, including land rent and penalties payable to date, remains outstanding.

Auditors also examined the development of the football arena under an agreement signed on 4 July 2018. According to the report, only 90 per cent of the accommodation block was completed under the project. Construction of the two football pitches and the office building had not begun.

Despite the incomplete works, FAM paid MVR 32.3 million to the contractor, which has not been recovered, the report said. The audit further noted that FAM paid MVR 14.2 million more than the value of the work completed.

The findings come amid continuing scrutiny of FAM’s financial management during the tenure of former president Bassam Adheel Jaleel, who led the association from 2019 until 2024.

Bassam has since been convicted in multiple corruption cases. In a separate case, the court determined that misappropriated funds were used to purchase two penthouse apartments at Amin Avenue. Bassam, who was already serving a nine-year prison sentence for earlier fraud and money laundering convictions, was subsequently handed additional sentences, bringing his total prison term to 32 years. The court also ordered him to repay USD 1.2 million within six months and imposed a fine of MVR 44.7 million.