The Confederation of African Football’s (Caf) audit and compliance committee has revealed that over $16 million in 'unrecognised expenses' were omitted from official accounts, leading to an estimated loss of more than $25 million. A letter sent to Caf’s executive committee members last Saturday, obtained by the Guardian, alleges that a review of a report by external auditors EY uncovered this discrepancy in the accounts for the year ending 30 June 2023.
The unaccounted expenses include nearly $12 million for 'technical costs not allocated to clubs, federations, and host countries', with the remaining amount corresponding to 'unrecorded expenses that should be accrued and recorded', 'unrecognised provision for debt balances', and 'other debit balances'. The audit and compliance committee has calculated that the $16.18 million unaccounted for would result in a deficit of $25.43 million after earlier losses of $9.25 million were reported this year.
In July, Caf’s general secretary, Véron Mosengo-Omba, had cited the lower figure as evidence of debt reduction. Mosengo-Omba inherited a deficit of approximately £30 million in March 2021 and had stated, 'For the next fiscal year, it will be zero.' Neither Caf nor Mosengo-Omba responded to requests for comment from the Guardian.
Separately, an ongoing investigation into Mosengo-Omba and his office has been initiated after Caf’s head of governance, risk, and compliance (GRC) accused them of 'impeding' her department’s duties and breaching internal governance and auditing regulations. Last month, the audit and compliance committee claimed there had been 'unauthorised interference' from Mosengo-Omba in the appointment of the external auditor.
Mosengo-Omba responded to these claims in a letter last week, stating that Caf’s statutes did not require him to seek consent 'before engaging a consultant'. He also dismissed concerns that the external auditor’s report 'was prepared in such a way as to contradict all the allegations contained in the confidential report' by the GRC, noting that the investigation was still ongoing.
In response, the audit and compliance committee stated that it would have been 'even more inappropriate for the secretariat to present the documents under investigation to the external consultant for inclusion in her report submitted to our committee for validation'. The committee maintains its position expressed in the report of 11 September 2024, believing it to be an attempt to use the report to pass documents and procedures that are the subject of the ongoing investigation.
A letter from Mosengo-Omba, who has also denied allegations of dishonest management, fraud, and forgery of documents in Switzerland, confirmed that Caf will extend the 70-year age limit by five years for prospective executive committee members at its general assembly next week. It also set a deadline of 12 November for prospective candidates to register their intention to stand in next year’s presidential elections. Incumbent Patrice Motsepe is expected to face competition from 71-year-old Egyptian and Fifa council member Hany Abo Rida, among others. The vote is likely to take place in March.
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