Football Association of Malawi (FAM), incumbent president Walter Nyamilandu has struck a defiant tone that he will go ahead to seek fourth term at the end of the year despite a reported tax evasion scam for the country’s football governing body.
Published reports on Monday June 22, 2015 indicated that FAM and its clearing agent Safari Freight Ltd, are suspected to have been embroiled in a tax evasion scam in which K13,137,533.55 is suspected to have been siphoned from Fam coffers under the pretext that it was meant to be paid to Malawi Revenue Authority (MRA) between 2012 and 2015.
According to a report in the Daily Times, Safari Freight Ltd, also allegedly presented invoices that had false currency values resulting in MRA under-collecting Value Added Tax (VAT) amounting to K5,767, 674.99.
The goods in question are donations that Fam received from benefactors such as world football governing body Fifa, Confederation of African Football (Caf) and Global Sports Limited.
Fam paid K13,137533.55 as taxes to the agent yet the funds never reached MRA and the association has now been asked to pay the duty prejudiced which is at K5,767, 674.99, meaning FAM will have lost close to K20 million through the scam.
“There was negligence on the part of Fam as they could not cross-check what was paid to the agent as taxes and what was paid to Malawi Revenue Authority,” the paper quotes Aa letter from Post Clearance Manager, Michael Banda, to Commissioner of Customs and Excise’s office dated February 17 2015.
Fam general secretary, Suzgo Nyirenda, insisted that they were not aware that Safari Freight – owned by Be Forward Mighty Wanderers FC chairman George Chamangwana -was defrauding the association.
Nyamilandu, however, is going ahead with his ambitions to longate his stay as FAM president, saying the tax evasion scandal was unrelated to the looming leadership vote.
The Fam president had earlier indicated that he will not seek a fourth term in charge of Malawi football but has performed a dramatic U-turn after affiliates said they want him to continue being FAM president.
The FAM president said he is seeking re-election after being urged by Central, Southern and Northern regions football associations plus the National Youth Football Committee (NFYC) and National Coaches Association (NRC) are some of the FAM affiliates.
“I will stand. I am ready and motivated to go for another term,” declared Nyamilandu.
The FAM president said he has taken a huge amount of thought to consider seeking another term after being backed by affiliates.
“It means they have confidence in my ability,” added Nyamilandu.Follow and Subscribe Nyasa TV :