FIFA ethics: Should Nick Mwendwa face sanctions for misuse of funds?

A few days ago, Nick Mwendwa, whose term in office ended on 10 February 2020 but who has insisted on remaining in office by instruction of a letter from FIFA’s Chief Member Associations Officer – Veron Mosengo-Omba, made revelations that have raised more questions about the Outside Broadcasting equipment project funded by FIFA to a tune of KSh135 million.

During an interview with Ghetto Radio, Mwendwa suggested he was aware of WTS Media’s financial woes as early as 2017 yet they went ahead to pay KSh125 million to the same British firm, that has now gone under, in 2018.

That, plus the facts surrounding the Adel Amrouche payment saga that has now left the country at risk of being kicked out of the World Cup Qualifiers for Qatar 2022 over a debt that has accumulated to KSh113 million, have brought to the fore serious ethical issues that should be looked at against the conduct of Mwendwa.

A section of Mwendwa’s critics are now wondering why the world-governing body is turning a blind eye on the glaring violations of the FIFA Code of Ethics.

They are citing article 28 of the code which speaks to “misappropriation and misuse of funds”, saying Mwendwa was guilty of misusing funds under his charge as the president of FKF.

“Has FKF under Nick (Mwendwa) not proved that they have misused the funds?” poses Gor Mahia CEO Lordvick Aduda.

“Have we not seen FKF under Nick occasion the loss of KSh113M plus of FKF by the manner he bungled the Adel’s case? What are the consequences for such violations as prescribed by Article 28 of the Code of Ethics of FIFA?

“Why does Veron continue to turn a blind eye to all these or why is he abetting the continued gross and serious violations?”

Article 28 (1) and (2) provides that “persons bound by this Code shall not misappropriate or misuse funds of FIFA, the confederations, associations, leagues or clubs, whether directly or indirectly through, or in conjunction with, third parties”.

“Persons bound by this Code shall refrain from any activity or behaviour that might give rise to the appearance or suspicion of a breach of this article.”

Aduda argues that the fact that WTS Media went into liquidation with FKF’s KSh125 million and the federation is not listed as a creditor constitutes a serious violation of Article 28 of the code through a third party, especially after Mwendwa admitted to having prior knowledge that WTS Media were in financial trouble more than a year before they went ahead to pay FIFA money to the British firm.

“The fact that nothing concrete is coming in terms of getting the money back from WTS is in itself an indictment on the leadership of FKF under Nick, coupled with the fact that FKF as and at the time they shall have cleared Adel’s payments will have denied the FA a whooping KSh248 million,” says Athanas Obala, who agrees with Aduda on the need for FIFA institute disciplinary proceedings against Mwendwa over the OB van and other monies.

“This is money that would have gone a long way to, for example, cushioning clubs in KPL, NSL and other leagues from the burden of paying referees, security, ambulances and more so the Women Premier League clubs who are really suffering to honour league matches.

“It is sad that instead of FIFA instituting the necessary charges they still want to extend Nick’s leadership tenure. That is a total violation of Article 28.”

FKF are understood to have paid at least KSh10 million as down payment for legal services when they appealed the FIFA decision on Amrouche’s payment at the Court of Arbitration for Sport, where the initial award of KSh60 million rose to KSh109 million. A further fine of KSh4 million was imposed on FKF after Mwendwa’s team failed to pay the Belgian coach by the 11 March deadline.

The federation was given a lifeline when the Disciplinary Chamber of FIFA extended the deadline for payment to 24 April but with the government help sought by FKF unlikely to come through, Kenya will most likely be booted out of the Road to Qatar 2022 alongside other sanctions.

Mwendwa’s opponents are of the view that his adamant demeanour amidst all the financial ‘blunders’ that he has presided over should not be reason to punish the entire country but should instead be premise upon which FIFA must invoke Article 28 (3) of the code to sanction Mwendwa as an individual and give Kenya the chance to chart a way out of the quagmire Mwendwa may have left FKF in.

“Violation of this article shall be sanctioned with an appropriate fine of at least CHF 100,000 as well as a ban on taking part in any football-related activity for a minimum of five years.

“The amount of misappropriated funds shall be included in the calculation of the fine. The sanction shall be increased accordingly where the person holds a high position in football, as well as in relation to the relevance and amount of the funds concerned or of the advantage received.”

Mwendwa’s administration is also under investigation by Government of Kenya agencies, including the Ethics and Anti-Corruption Commission and the Directorate of Criminal Investigations, over the KSh244 million AFCON 2019 monies as well as other taxpayer funds (amounting to hundreds of millions) received through the Ministry of Sports and the Sports Fund.  

During the AFCON 2021 qualification match away in Egypt, Mwendwa is accused of forging hotel accommodation invoices amounting to KSh4 million to government.

The matter is also a subject of a government audit and DCI probe.