By Michelle Chifamba
The Zimbabwe Football Association’s (ZIFA) financial records are in a mess amid revelations that the soccer governing body does not have details of transactions that happened before June 2023, an investigation conducted with the assistance of the Voluntary Media Council of Zimbabwe has found.
In any case, the investigation established that the financial records were already in disarray as confirmed by several financial audited results.
In briefings, ZIFA officials revealed an accountant employed by soccer governing body before the Normalisation Committee took over in June 2023, disappeared without official leave without leaving any records.
The normalisation committee was appointed by the Federation of International Football Association (FIFA), when it lifted the 18-month suspension that was imposed on the Zimbabwe Football Association (ZIFA) in February 2022. The committee was mandated by FIFA to put the ZIFA house in order by running the daily affairs, restructuring the ZIFA administration, reviewing the ZIFA Statutes and Electoral Code to ensure compliance with FIFA Statutes and requirements as well as to ensure a proper financial handover to the new ZIFA board, among other duties.
The accountant however disappeared soon after the committee took office, before being located several months later. She however said ‘her computer had a software malfunction hence she could not retrieve any information from it.’
Quizzed on the missing documents, on the 10th of November through email and phone calls, ZIFA Administration Assistant, Merry Bharu, said she would respond to the questions through email.
“We have directed your questions to the relevant authorities who can provide you with a reasonable response and you will be notified through email,” Bharu said.
The ZIFA administration is however yet to respond.
FIFA Forward Projects Manager, Kudzai Chitima said he could not comment on administrative issues.
“I assumed my position at the inception of the Normalization Committee in June 2023 and I can only comment on issues pertaining that period to date which is related to the funds disbursed through FIFA’s Goal Project. Anything beyond that is not in my area of expertise,” Chitima said.
The case of missing financial statements and documents is not foreign within ZIFA, which has often been accused of mismanagement and abuse funds, leading to the poor performance and non-development of the game in Zimbabwe.
A ZIFA-Forensic-Audit-Report, for the period December 2018 to November 2021 done by BDO Zimbabwe Charted Accountants shows anomalies with ZIFA financials as it details missing financial statements during the period under review.
“We included all the information that we came across which is relevant to the scope of our work, however it is possible that there are documents and information which exist which were not made available to us. Some of the officials who were ZIFA board members during the period under investigation did not respond to our questioners hence there are not included in the report,” the report reads.
Documents obtained during this investigation reveal that financial problems within ZIFA, a litany of lawsuits from former employees and match fixing agents have bled the association. The association has been in the red due to the administrative challenges that continue to emerge due to the controversial personalities at the helm of the leadership.
The investigation found that maladministration and corruption was a common thread with former ZIFA administrations from Leo Mugabe, Cuthbert Dube, Philip Chiywangwa and Felton Kamambo, resulting in the association failing to ensure the development of football or complete projects including the FIFA sponsored Zifa Village.
Leo Mugabe, the longest serving ZIFA chair was in the office from 1993 until January 2003, when he was removed following a vote of no confidence by the board. At the time of dismissal he was accused of corruption, mismanagement, incompetence and maladministration.
According to media reports Mugabe failed to account for more than US$250 000 grant given to ZIFA through FIFA which were earmarked for football development.
The Cuthbert Dube, administration was in office between March 2010 and October 2015. During his tenure, Dube was accused of putting in place poor corporate governance systems ensuring that he became a sole decision maker in the ZIFA board, thereby creating loopholes and a lack of transparency and accountability. Dube the former Group Chief Executive Office of PSMAS was later implicated in the salary-gate scandal where he was allegedly benefitting from tax-payers money.
The salary-gate scandal, during the period 2013-2014 unearthed how bosses from parastatals in Zimbabwe were awarding themselves mega salaries while failing to pay low level employees at times for several months. Dube, who was the, Premier Services Medical Aid Society, Chief Executive Officer, was allegedly earning US$210 000 monthly salary and allowances while the entity was reeling from debt of over US$38 million.
The Chiyangwa’s administration was in the office from 2015 to 2018. Media reports described his administration as being possessed with greed, and self- aggrandizement
Documents obtained during this investigation revealed that the former president leased the ZIFA Village to his company Hansporte Investments. During the Chiyangwa administration, ZIFA offices were moved from Livingstone Avenue in the Avenues to one of his properties in Chisipite.
A ZIFA 2017 financial report compiled Baker Tilly Gwatidzo Charted Accountants revealed anomalies regarding corporate governance during Chiyangwa’ tenure.
The report stated that in a potential breach of good corporate governance practices, Chiyangwa earned $72 000 in 2017 alone by renting out his business offices along Enterprise Road in Harare to the association.
According to the audit report, Chiyangwa’s company, Kilima Investments charged ZIFA $6 000 a month in office rentals. The lease agreement between ZIFA and Kilima Investments, stipulated that rental fees must be paid in advance at the start of every year.
During Chiyangwa’s administration, the Zifa debt ballooned from US$5 to $8 million between 2015- 2018.
Further evidence extracted from the ZIFA-Forensic-Audit-Report, for the period December 2018 to November 2021 done by BDO Zimbabwe Charted Accountants further showed financial maladministration and misappropriation of funds by the executive leaders within ZIFA.
The audited results exposed unaccounted funds made by the top officials within the association in 2018. The audited report outlined how money received from FIFA was misappropriated, during the Felton Kamambo administration.
“The grant of US$182 700 received on December 20, 2018 was omitted from the associations books of accounts for 2018. The grant was deposited into a FIFA Ecobank account which was opened on December 20, 2018 by Mr. Kamambo, Mr. Machana and Mr. Mamutse as signatories. The account was not disclosed to the finance department by the end of the 2018 financial year, hence omission of the grant statement. On December 24, an amount if US$50 000 was transferred from the new bank account into ZIFA general account, and accounted for as sponsorship income,” the report reads.
“We also noted three cash withdrawals of US$10 000 made in the name Mamutse from EcoBank account on December 21, 24 and 25 respectively. We could not trace the cash withdrawals to the accounting records of ZIFA and no supporting documents were availed to show how funds were utilized.”
The case of the ZIFA Village
Corruption and bad corporate governance has resulted in ZIFA losing money to lawsuits stifling football development and infrastructural projects, the most notable being the ZIFA village.
In 2000, Zimbabwe Football Association purchased a property worth US$400 000, through the FIFA Goal Project. The funding was part of the estimated US$2.5 million that was aimed at developing football in Zimbabwe.
Located in Mt Hampden, approximately 7 kilometers from Westgate Complex, ZIFA aimed to set up a training center that would pave way for a sports academy.
On completion, the ZIFA Village was supposed to transform Zimbabwe football, with upmarket lodgings, a world class 200 seater conference center, a world class standard artificial turf stadium and a football museum (Hall of Fame) to be completed by 2013.
Approximately twenty-four years down the line, the Village remains an edifice, evidence gathered during this inquiry reveals.
Apart from corruption, legal battles with former employees such as the Mhurushomana vs ZIFA case sunk the ZIFA Village.
Lazarus Mhurushomana, the longest ZIFA administrator, was retrenched by ZIFA in 2007. He sued the association for terminal benefits and won the case. Mhurushoma secured a writ of attachment to recover more than US$500 000 which he was owed by the association, resulting in the attachment of moveable property.
Another case that bankrupted ZIFA was Kentaro AG Match Agency which demanded approximately US$700 000 in 2014. In the case, ZIFA accrued a debt of US$650 000 from the Brazil match agent, back in 2010 the Warriors hosted Brazil in a friendly match played at the National Sports Stadium. The match agent, Kentro won the case and to clear the debt, ZIFA’ movable properties including the artificial turf from the ZIFA Village stadium was removed and attached through the High Court.
A 2013 Parliament Portfolio Committee on Education, Sports, Arts and Culture enquiry into the operations of ZIFA on its programs shows that there are loopholes in the ZIFA Constitution used to manipulate the administration.
The ZIFA Constitution is one of the most powerful piece of legislation in the governance and administration of the association, yet the executive amend it to further their interests, creating a powerful and untouchable leadership who use their political connections to attain and remain in control.
The Parliament Portfolio Committee report reveals that ZIFA board of Executives amend the Constitution to suit their personal needs. Between 2004 and 2007, the Constitution was amended four times.
“Whenever a new board comes into office, they change the Constitution so that it suits the Executives. From 2004 to 2007 the Constitution has been amended to suit personality interests. It is the board which has executive powers to determine commissions of inquiry on corruption, maladministration hence it is made to suit the needs of the board of executives,” reads part of the Parliament Committee report.
This investigation however established the Normalisation Committee has started the process to renovate the Zifa Village now underway.
Kudzai Chitima said plans are underway to renovate and resume the project.
“FIFA lifted the suspension on ZIFA and the project is under review to enable the resumption of the ZIFA Village. Plans are underway to redo the artificial turf and build a technical center in accordance with FIFA guidelines. We have put out an advert for tender through the media and on Zifa websites to attract potential bids,” Chitima said.
Lincoln Mutasa, ZIFA Normalisation Committee Chairperson says, “ZIFA Constitution has been flagged by FIFA as a source of maladministration and corruption, hence needs to be amended for the institution to be assisted with funding for further development.”
Sports analyst, Richard Zimunya says, “The image of ZIFA has been dented by poor governance. Corruption within the organization is rife because funds were not being handled well. Funds were abused and were never accounted for. ZIFA struggled to complete projects such as the ZIFA Village Project despite receiving funding from FIFA.”
Zimunya says the scandals of corruption, mismanagement of funds, and maladministration, and poor corporate governance, politicization of football have cast a long shadow over Zimbabwe football.
“There is no transparency and accountability frameworks within ZIFA and that is why the ZIFA Village failed. ZIFA is a public office and all the finances that they receive through FIFA and other sponsors should be made available for public accountability.”
