The Football Association of Maldives (FAM) is now grappling with a debt burden nearing MVR 150 million, a significant increase from its previous debt of MVR 85 million.
The sharp rise follows a court ruling that ordered FAM to pay MVR 52.1 million (USD 3.2 million) to South Korea’s T Kuing Construction. This debt stems from an agreement between the company and FAM, signed by former FAM President Bassam Adeel Jaleel, for the development of football grounds in ViliMale' and Hulhumale'. The Civil Court’s decision last week concluded that FAM had failed to meet its financial obligations under the agreement, resulting in the ruling.
In addition to this, state airline Maldivian has also issued invoices and letters to FAM demanding payments of MVR 7.4 million for trips made by the association in 2016 and 2017.
FAM has not complied with multiple court orders, and some cases are now being implemented. However, FAM’s Normalization Committee, which is currently managing the association’s affairs, has expressed its intention to appeal the ruling involving T Kuing Construction.
FAM’s financial troubles could lead to bankruptcy, Normalization Committee Chair Ahmed Zuhoor assured that the committee is working to prevent such an outcome. Zuhoor emphasized that efforts are being made to stabilize the situation and manage the debts.
Committee member Ismail Siman also addressed the issue in a press conference last month, stating that the committee plans to appeal any court cases where there is still a window to do so. For cases where rulings can no longer be appealed, FAM will seek negotiations with the involved companies to explore possibilities for concessions or payment plans.
As FAM continues to manage these financial challenges, the looming debt crisis presents significant hurdles for the association and its ability to fulfil its obligations to both local and international stakeholders.
