Netball body fails to account for K65 million as AGM exposes shocking financial gaps
- Auditors issue qualified opinion after Netball Association of Malawi cannot explain how millions were spent, despite president insisting money was ‘not misappropriated or stolen’
The Netball Association of Malawi (NAM) has come under fire after its annual general meeting revealed the association failed to account for a staggering K65 million, with auditors issuing a qualified opinion over the discrepancy.
The AGM, held at Sunbird Livingstonia in Salima, heard that NAM’s total expenditure stood at K1.6 billion – but the association was unable to explain how K67 million of that sum had actually been used.
‘Not misappropriated or stolen‘
NAM president Vitumbiko Gubuduza insisted the missing funds had not been stolen, instead blaming a lack of proper financial reporting from regional communities and teams who received money from the association.
“As an association, we send money to regional committees and district committees directly to their account to run their affairs,” Gubuduza said.
“The expectation is that they are supposed to give us signed sheets on how many was spent and also receipt of expenditure. They are supposed to account for every penny.”
Gubuduza said the lack of proper documentation had made it extremely difficult to reconcile the association’s accounts, revealing that some cash had also been given to clubs in the FDH Bank Premiership – but that these teams failed to even confirm receipt of the money.
A further shortfall, she said, stemmed from Salima Sugar sponsorship funding that ended prematurely.
Disciplinary action threatened
NAM has now warned it will discipline clubs and committees that failed to account for funds they received, revealing that a report on the matter had already been submitted to the association’s disciplinary committee, given what officials described as a repeating problem.
Governance concerns extend across sport
Malawi Schools Association (Massa) president Blackson Malamula, who attended the AGM, said NAM’s decision to engage external auditors demonstrated a genuine commitment to accountability and transparency, despite the damning findings.
“The most thorny issue at any AGM is financial issues. But we have seen how well they articulated. They have even engaged external auditors,” Malamula said, adding that many sports associations lacked external auditors capable of providing proper balancing checks.
“On the issue of governance, they are on course and we have to emulate them.”
NAM’s leadership also used the AGM to thank sponsors including FDH Bank, One Nico, Mukuru and Vitumbiko Mumba for their continued financial support.
