FAZ Statement on Allegations of Financial Irregularities

I wish to advise that following the illegal circulation of financial documents relating to the Football Association of Zambia (FAZ) activities, it has become necessary to clarify some of the assertions circulating prominently on social media platforms.
The documents that have been circulated make up part of the audited accounts that were approved by the FAZ Council in the meeting of 31 March, 2018.

Constitutional Authority
Article 35(a) gives the Executive Committee power to pass all decisions that do not come under the sphere of responsibility of the council or are not reserved for other bodies by the law or under these statutes.
Article 35 (d) may decide to set up ad-hoc committees if necessary at any time. Article 35(e) shall compile the regulations for the organization of standing committees and ad-hoc committees.
Article 35(m) may delegate tasks arising out of its area of authority to other bodies of FAZ or third parties.
These clauses allow the Executive committee to make decisions as stated in Article 36(a) that elaborates on decision making powers of the executive committee
36(1) The Executive committee shall not engage in valid deliberations unless a majority (more than 50%) of its members are present.

EXCO Allowances
The FAZ Executive Committee members and staff members were part of the U20 Local Organising Committee. The LOC included officials from various government ministries. for the U20 Africa cup hosted by Zambia between 26 February and 12th March 2017. The allowances relating to the U20 Africa Cup of Nations under FAZ and the Local Organizing Committee cover a period of 5-months. During this period the FAZ Executive Committee members were actively involved in running the eleven committees that were set up for the purpose of managing the event. Their involvement was on a day-to-day basis and required full-time commitment to the preparation for the tournament.

The current FAZ structure remunerates committee members sitting allowances for meetings as follows:
Sitting/Daily Allowances- Exco Members K1,000 (K1500 Veep), K2,000 (President)
Lunch allowance K300/day for all members
Fuel refund from K600 to K1200
Accommodation outside Lusaka K2,000 per day and vice versa for those travelling to Lusaka
This structure has been adopted strictly for this 5-month period as the method of payment for work done during this period. Had the traditional method of payment been followed during the same period, the amount would have been K2.56 million compared to K805,000 which was paid for only 30 days as opposed to 150 days. This reduced the payment due to each committee member as per circulated figures now in the public domain.

Despite the committee members working tirelessly between November 2016 and March 2017, no payment was made until funds were available in November 2017. The amounts paid were standard daily allowances except they were paid in one lump sum six months after the end of the tournament.

An amount equivalent to one-months pay was earmarked for Secretariat staff for their contribution to the LOC for the success of the U20 Africa cup of nations hosting as opposed to payment of their entitlement of servicing and other allowances.
U20 Players allowances

The allowances for the U20 national team were paid after the team won the Africa Cup of Nations and prior to the team’s departure for the World Cup in Korea. Each player received the sum of $3,300 for winning Africa Cup after considerations by the Executive Committee and despite payments to the teams strictly forbidden by CAF and FIFA statutes as these tournaments are deemed development.

This was viewed as an exception especially that CAF offered a prize money of US$250,000 for winning the cup. No bonus was paid for the U20 FIFA World Cup as there was no prize money in the competition.
FIFA paid each player the sum of $100 each for the duration of the tournament. The FAZ President, in his individual capacity, also paid each player and the technical team $100 as gratification for their performance in the tournament.
KoPa Replicas and Kit

A sum of $80,000 was paid to the KoPa Kit manufacturer and to date $50,000 amount of replicas and $30,000 worth of playing kit has been received. This kit was used by the senior national team during the recently played CHAN tournament in Morocco.
Refunds to ENFIN SOLUTIONS Limited

The Football Association of Zambia (FAZ) wishes to advise that during the course of its operations the association has turned to the FAZ President Mr. Andrew Kamanga for short-term financial assistance during emergencies. Suffice to mention that this support has been rendered at no extra cost to the association especially that the financial position of the association was too weak to even support normal overdraft from our banking partners.

The President through his company, made it possible for the U17 national team to meet its obligations at the COSAFA tournament in Mauritius by assisting with the purchase of air tickets valued at $11,000. This amount was later refunded when funds became available at no additional cost to FAZ.

The Company also assisted with the purchase of playing kits for division two and three clubs at the end of March 2017 and was only refunded in May 2017, two months later with no interest charged. This is the basis of the $38,000 refund approved in one of the leaked documents.

This was also the case in January 2018 when the team was due to travel to Morocco for the CHAN 2018 tournament when delays in procurement for tickets by the sponsor almost derailed the team’s travel plans. The President’s company rescued the situation. A total sum of $25,000 was paid towards the travel costs, and the same was refunded at the end of January 2018.
National team Ghana costs

There is also a payment of K30,000 to the FAZ General Secretary, Mr Pasipononga Liwewe, for Ghana hotel costs during the team’s stopover on the way to Nigeria for a World Cup qualifying match. This was necessitated again by the delay in funding by the sponsor. The General Secretary availed his debit card to the team manager at the airport when the funds did not materialize, and a deposit was made into the account which the team manager used to make hotel payments in Accra. All payments are backed by documentation.

Leaks of documentation

We note with concern involvement of expelled members of the Executive Committee in the distribution of these documents. Mr Kazala is still due to appear before the FAZ Council to respond on charges levelled against him relating to abuse of office and misuse of funds amounting to K150,000. It is clear that these machinations are an attempt to divert attention from his pending matter.

The Football Association of Zambia (FAZ) remains available to clear the air over these and other matters and will fully cooperate with any organ of the law if required to provide further clarity.

FAZ will be taking remedial action at the secretariat to prevent any further such breaches of confidentiality that the staff is bound by. Those found to have participated in such breach will face the full course of the law and internal disciplinary action will also be taken. FAZ clearly understands the difference between whistleblowing and attempts to destabilize the smooth running of the organization.

further we wish to advise that we have briefed the ministry of Youth, Sport and Child Development and have since rendered a detailed report. we will in due course also inform CAF and FIFA accordingly.

For and on behalf of:
FOOTBALL ASSOCIATION OF ZAMBIA
Pasipononga Liwewe
GENERAL SECRETARY