The Namibia Football Association (NFA) owes close to N$1.5 million in unpaid taxes to the Namibia Revenue Agency (NamRA).

This was revealed in its audited financial statements for the year ending 31 March 2024. 

The audit, conducted by Saunderson & Co, highlighted that the debt stems from Pay As You Earn (PAYE) tax deductions from employee salaries that were never remitted to NamRA due to cashflow challenges.

The arrears total N$1 469 853, consisting of a capital amount of N$420 903, penalties amounting to N$564 755 and interest charges of N$159 373. 

Despite this backlog, the report notes that the NFA has committed to engaging NamRA to clarify the liability and negotiate a payment plan. 

The association also intends to participate in the Ministry of Finance and Social Grants Grants’ tax amnesty programme, which could potentially result in the waiver of penalties and interest.

Further to this, post-report expenditure included a payment of N$456 000 to former secretary general Franco Cosmos. 

This amount was paid in compliance with a labour court ruling. 

Additionally, the NFA offered a new employment contract for the role of director of membership, governance, compliance and legal affairs.

Despite the financial hurdles, the NFA’s executive committee insists that the association remains in a sound financial position. 

They maintain that the NFA has access to sufficient borrowing facilities to meet foreseeable cash requirements.

A longstanding issue highlighted in the audit concerns the ownership of Football House. 

The property was constructed using a grant from Fifa during the 2004 financial year on land acquired from the Windhoek Municipality. 

However, the erf remains registered under the municipality.

Although no eviction notice has been issued, the title deed has yet to be transferred to the NFA.

Revenue highlights

The NFA reported a diversified income portfolio for the reporting period – FIFA: N$49 million, CAF: Close to N$25 million, De Beers Marine Namibia: N$19 million, Namibian government: N$12 million, First National Bank Women’s Super League: N$3 million, MTC (AFCON campaign): N$2 million, Namibia Breweries (AFCON campaign): N$2 million, Namibia Diamond Trading Company: N$200 000, PstBet and presidential donations: N$300 000, prize money received: N$293 507, and Namibian Newspaper Cup revenue: N$61 780.

Expenditure summary

The association’s expenditures for the period included: men’s national team: N$25.7 million, women’s national team: N$14 million, AFCON-related expenses: N$15 million, Debmarine Namibia Premier League: N$17 million, development courses: N$2.7 million, conferences and meetings: N$1.8 million. 

A significant relief was the write-off of N$2 million in debts previously owed to members, which the NFA could not afford to pay over the years.

FIFA future support

In a move likely to bolster the NFA’s financial standing, FIFA is expected to inject N$64 million into the association between 2024 and 2026. 

These funds, if used prudently, could help stabilise operations and strengthen development initiatives.

Concerns

A local auditor, who spoke under anonymity, said the financial statement does not explicitly mention related-party transactions or fraudulent activities.

 However, financial clarity, strong internal controls and compliance with FIFA financial regulations will be critical in maintaining credibility and ensuring the sustainability of Namibian football. 

-lmupetami@nepc.com.na