The Football Association of Maldives (FAM) finds itself entangled in a web of complex contracts with K-Park subsidiaries, a company currently facing serious allegations of fraud. These claims are related to the development and sale of luxury apartments in Hulhumalé, casting a shadow over FAM’s financial dealings and future.
Massive Contracts Under Scrutiny
During the tenure of President Bassam Adeel Jaleel, FAM entered into agreements worth an estimated USD 50 million with K-Park subsidiaries. One of the most significant contracts involved a court ruling requiring K-Park to pay over MVR 52 million to Tquin Construction Co. Ltd. This ruling arose from K-Park's failure to complete essential projects, including a football stadium and a school in Hulhumalé. These delays not only impact the community but also raise concerns about FAM's oversight and decision-making processes.
A Troubling Partnership with Sky Wind Global
In addition to the agreements with K-Park, FAM signed a USD 17 million contract with another subsidiary, Sky Wind Global. This project aimed to construct a 20-storey office building and a four-storey indoor football arena at Maafannu Stadium. However, complications arose when FAM had to vacate its offices to facilitate construction. While they sought alternative office space, financial mismanagement soon took its toll. The association struggled to meet its rent obligations, leading to the unfortunate situation where the National Football School building remained unused. Consequently, FAM lost the land due to unpaid rent, exacerbating their financial woes.
Questionable Agreements and Lack of Due Diligence
A former senior official within FAM disclosed that many of these agreements were made based on verbal assurances from Hassan Mamdhooh, the Director of K-Park Residencies and a Maldivian shareholder. Alarmingly, there was no thorough verification of the companies' registration status in the Maldives before these contracts were signed. This lack of due diligence has left FAM in a precarious position, raising questions about governance and financial oversight within the organization.
The Financial Fallout
Currently, FAM finds itself owing K-Park over MVR 150 million. This staggering debt has placed the association in a dire financial situation, forcing it to confront significant challenges. The potential fallout from these contracts not only threatens FAM's stability but also raises broader concerns about the governance of sports organizations in the Maldives. How such large sums could be committed without stringent checks and balances is a critical question that stakeholders must address.
