Confederation of African Football Faces $16 Million Discrepancy in Accounts

The Confederation of African Football (CAF) is embroiled in controversy after its audit and compliance committee revealed a staggering discrepancy of over $16 million (£12 million) in unrecognized expenses. These missing funds mean that CAF should have reported losses exceeding $25 million (£19 million) for the fiscal year ending June 30, 2023.

A letter sent to members of CAF’s executive committee last Saturday, which has been reviewed by the Guardian, detailed the committee's findings based on a report from external auditors Ernst & Young (EY). The discrepancies include nearly $12 million (£9 million) attributed to “technical costs not allocated to clubs, federations, and host countries.” The remaining amount consists of “unrecorded expenses” that should have been recognized, as well as “unrecognized provision for debt balances” and “other debit balances.”

The audit committee's assessment indicates that the unaccounted sum of $16.18 million would elevate CAF’s deficit for the year to $25.43 million, following previously reported losses of $9.25 million. In July, CAF's general secretary, Véron Mosengo-Omba, had referenced the lower figure to demonstrate the organization’s efforts to reduce its debt. Mosengo-Omba, who took over an inherited deficit of approximately £30 million in March 2021, expressed optimism for the upcoming fiscal year, stating, “For the next fiscal year, it will be zero.”

Requests for comments from both CAF and Mosengo-Omba have gone unanswered by the Guardian.

Ongoing Investigations and Governance Issues

In a separate but related development, an ongoing investigation into Mosengo-Omba and his office has been initiated. CAF’s head of governance, risk, and compliance (GRC) has accused the administration of obstructing her department's efforts to carry out its responsibilities. Among other allegations, she claims that internal governance and auditing regulations have been violated.

Last month, the audit and compliance committee alleged that Mosengo-Omba had made “unauthorized interference” because the external auditor had been appointed by him. In response to these allegations, Mosengo-Omba stated in a letter that CAF’s statutes did not require him to seek consent before hiring a consultant. He also dismissed concerns regarding the external auditor’s report, which he claimed contradicted the allegations presented in the GRC’s confidential report, arguing that the investigation is ongoing. He emphasized that discussing these matters with the GRC would be inappropriate, as it could be perceived as interference in the official proceedings.

The audit and compliance committee countered that it would have been “even more inappropriate” for the secretariat to present documents under investigation to the external consultant for inclusion in the report submitted for validation. The committee reiterated its stance, asserting that this action appeared to be an attempt to use the documents and procedures involved in the ongoing investigation to influence outcomes.

Leadership Changes Ahead

In a related note, a letter from Mosengo-Omba, who has denied accusations of mismanagement, fraud, and document forgery in Switzerland, indicated that CAF would extend the age limit for prospective executive committee members from 70 to 75 years during its general assembly next week. This change is intended to encourage broader participation in leadership roles.

The letter also set a deadline of November 12 for candidates to announce their intention to run in the presidential elections slated for next year. The current president, Patrice Motsepe, is expected to face competition from various candidates, including 71-year-old Egyptian and FIFA council member Hany Abo Rida. The presidential vote is likely to take place in March.

As the CAF navigates through these challenges, the revelations regarding financial discrepancies and governance issues will undoubtedly have significant implications for African football's governing body moving forward.