Sulom accounts saga rages on

Super League of Malawi (Sulom) financial accounts spanning from 2007 to 2009 have revealed gross mismanagement by the executive committee which was headed by Henry Chibowa.

The report seen by Weekend Nation during the week was presented to affiliates by auditors Pricehouse Coopers last Sunday.

An original audit, prepared by Mwenelupembe, Mhango and Company, was rejected at an extraordinary meeting in Lilongwe and the affiliates instead engaged Pricehouse Coopers to redo the work.

In the 2007 report, the then executive indicated that they had assets valued at K2.7 million and also furniture and equipment worth K218 720. But the auditors could not ascertain where the said assets were.

“There was no fixed assets registered to enable us verify physical existence of fixed assets,” reads the report.

The auditors also discovered that there was a difference between revenue received from TNM recorded by Sulom. TNM confirmed the difference as recorded by Sulom but the former executive could not provide the auditors with any explanation.

“We were not provided with any explanation for the difference between the amount confirmed by TNM and the amount on ledger, K14 285 000. We were unable to satisfy ourselves by alternative means as to the completeness and accuracy of sponsorship funds,” further reads the report.

The report also revealed that there were no satisfactory auditing procedures that auditors could perform to obtain assurance as to the completeness of gate collections amounting to K467 194 the whole of 2007 season.

The auditors also failed to form an opinion on the 2008 finances.

Just like the 2007 report, there was inadequate system of internal control to ensure the completeness of gate collections on which they could rely for the purpose of the audit.

There was also no fixed asset register to enable them verify physical existence of fixed assets of a motor vehicle valued at K18 million and furniture and equipment valued at K191 380 indicated in the accounts.

No wrong doing- Chibowa

Despite the revelation by the auditors, Chibowa insisted in an interview on Thursday his committee had done nothing wrong.

“There was no wrong doing in the previous committee and there is nothing to hide. We had a meeting with the old committee and the new committee and the auditors,” said Chibowa.

Sulom treasurer Tiya Somba Banda said the basis of the disclaimer has exposed lack of accountability and transparency in the way the financial accounts were handled.

“We are glad that finally the auditors have concluded their work, now we can move on. Major flaws have been noted and we are taking this as a stepping stone. It is plain that there were no control measures in the handling of the finances,” he said.

Clubs shocked

Clubs, however, have expressed shock with the revelations of the report and have cautioned the current executive against repeating the same mistakes.

“Now that there is light on the way the accounts were handled, we agreed that there is need to find the truth as to what actually led to the financial mess. We are not happy with the outcome of the accounts as it shows serious mismanagement of funds by the previous committee.

 “How we handle this issue now as affiliates will set a precedence,” said Moyale Barracks FC legal adviser Captain Leonard Kuchipanga.

He said the current executive should derive lessons from this mess so as to do a better job.

Mighty Wanderers welcomed the report, saying it puts a lot of things in perspective.

“It is not possible that for the whole of the 2009 season only K360 000 was raised through gate collections. We have reservations with those figures,” said Wanderers general secretary David Kanyenda in reaction to the auditors’ findings.

He said the Pricehouse Coopers report will trigger other investigations into the financial accounts, in spite of a decision by the AGM to close the matter.

“Of course, the issue has been dragging for a long time and some relevant people are no longer there but sometimes it is important to get to the bottom of the issue to set precedence. While establishing the truth, we must not be seen to be witch-hunting or targeting people,” said Kanyenda.

Big Bullets general secretary Higger Mkandawire said they are currently discussing the report and will come up with a position later.

“We are dealing with this issue positively but first we have to see as to what circumstances led to this mismanagement of finances. We do not have to be negative but look at the difficulties that the previous committee faced instead of judging them,” said Mkandawire.

Civo United said the report was not impressive.

“The errors in the report were so obvious. This is a lesson to the current executive but also the affiliates to ensure that financial reports are updated frequently to avoid abuse or outright fraud,” said Civo general secretary Rashid Ntelera.

Silver Strikers also expressed dissatisfaction with the outcome of the accounts and also the time it has taken for the auditors to present the accounts.

“Of course, there is need for the matter to be put to rest as some quarters might suspect witch-hunting,” said Silver general secretary Owen Munthali.