Goemkarponn desk
PANAJI: The Rossman Cruz Nagoa Sports Club has written to the President of the Goa Football Association alleging irregularities including financial irregularities in its functioning.
In his letter addressed to the GFA president, Cruz Rosario Gonsalves, the secretary of the Club alleged that GFA monies were being deposited in the personal accounts of the managing committee members.
“The most concerning finding is in list “R” of the Audit Report wherein shocking payments are made to Executive Committee Members of GFA. There can be no explanation as to why money from the GFA coffers is paid into the personal accounts of its Managing Committee members. These payments, are made into personal accounts. are in violation of the GEA constitution, which stipulates that Executive Committee Members serve without remuneration and therefore GFA may immediately get the money refunded from the concerned Managing Committee Members. This is not only a financial irregularity but also, a serious example of conflict of interest,” Gonsalves said in his letter.
Gonsalves also said that the GFA has amended its constitution without following due procedure and, as such, would have to revert back to its original constitution to avoid legal action.
“It was pointed out in the meeting that the constitution is not valid and ab initio null and void. As such a general body meeting convened in terms of the said invalid constitution is illegal and invalid. The communication from the District Registrar means that your amended constitution is not legally valid and cannot be enforced. As a result, the GFA must revert to its original, unamended constitution and operate according to it as it remains in force. Consequently, the election of Executive Committee Members held in October 2022, based on the amended constitution, is null and void. The GFA is required to hold elections in 2024 to elect new Executive Committee members within two years of the previous election, in accordance with the old, unamended constitution, which is legally valid. If this does not occur, my Club will pursue legal action in the court of law,” he said in the letter.
He was referring to a letter by the District Registrar (North) and the Office of the Inspector General of Societies, Junta House Panjim, vide their communication No. DRN/RS/64/2024 dated 16/07/2024. In response to your letter dated 07/08/2023, the GFA did not follow the procedure for amending its constitution under Section 12 of the Societies Registration Act 1860.
“In addition to what is stated above, you have informed You, intentionally, with a vested interest, ulterior motive and hidden agenda, failed to disclose this critical disclosure made by the District Registrar in the AGM and EGM which were held on 21.07.2024,” he said.
In addition, Gonsalves raised the following points concerning the audit reports, in his letter to the president of the GFA.
Regarding the audit reports presented during the illegally held AGM on 21.07.2024, the President highlighted significant financial mismanagement. The audit reports reveal contradictions, stating on page 6 that the GFA maintains accounts on a cash basis, while also including Sponsorship Receivable in List “C” and Expenses Payable in Schedule “D”. The audit report is fundamentally flawed because it combines elements of both the cash system and the accrual (mercantile) system. These two accounting and auditing systems cannot be used simultaneously, and doing so constitutes financial impropriety.
The audit report mentions Schedule ‘A’, which contains entries that are not vouched. A quick review of Schedule ‘A’ shows payments made to Kalidas Dessai, Ritina Pereira, Joe Colaco, and Selvyn Miranda amounting to Rs. 1.75 lakh. There is no documentary proof of these payments, indicating that the amounts may not have been paid to these individuals.
An advance of Rs. 61,890/- allocated for organizing matches has been pending settlement for an unreasonably long period. This situation raises concerns about the potential misappropriation of funds. Kindly provide the necessary documentary evidence to account for this expenditure.
List ‘D’ indicates that GFA received a grant of an amount of Rs. 77,84,400/- from the Government of Goa through SAG, out of this Rs. 63,77,488/- has been spent. However, the audit report does not account for the remaining Rs. 14,06,912- leaving this public money unaccounted for. This is public money and cannot be siphoned off. The GFA has to either return the unspent grant to the Government of Goa or disclose its whereabouts under the correct head in the financials.
Similarly, List “D” shows that the GFA received a grant of Rs. 41,48,240/- from AIFF for organizing the Santosh Trophy National. List “p” reveals that only Rs. 30,79,294/- was spent, while List “M” indicates an additional expenditure of Rs. 13,22,879/-. The audit report’s recording of two different entries for the same expenditure head raises serious concerns of the misappropriation of funds. It is imperative that the GFA clarify these discrepancies to ensure transparency and prevent any suspicion of financial mismanagement.
The GFA received another grant of Rs. 14,26,275/- from the AlFF for organizing Senior Women’s Nationals as recorded in List “D”. However, list “M” reveals that Senior Women’s National expenses amounting to Rs. 10,90,397 There is no indication in the Audit Report about the unspent grants of Rs. 3,35,878/-. It is required that the whereabouts of this money is revealed.
Additionally, List “C” indicates that the GFA received Rs. 34,04,557/- from the Reliance Foundation Youth League and Rs. 11,73,512/- from the Reliance Foundation Development League. The reported expenditures are Rs. 12,25,400/- for the Youth League and Rs. 5.97,978/- for the Development League, with an additional Rs. 2,24.988/- spent on the Reliance School League. This results in a total expenditure of Rs. 20,48,366/-, leaving a balance of Rs. 25.29,703/- from the total grant of Rs. 45,78,069/. The audit report does not account for this balance. The whereabouts of this money is not available in the Audit Report.
Further, the audit report reveals a substantial increase in expenditures for organizing various leagues and tournaments. The GFA incurred Rs. 34,53,678/- for the Professional League in FY 2023-2024. a significant rise from the previous fiscal year. Similarly, there were increases of Rs. 6,53,735/- for the Second Division League, and Rs. 9,00,376/- for the Third Division League. Rs. 9,75.343/- for the U-13 boys’ tournament, and Rs. 11,21,611/- for the U-15 boys’ tournament. Overall, there is an alarming increase of Rs. 71,04,743/- in expenditures for these tournaments compared to the previous year, with no justification provided in the audit report.
“The GFA must address all the observations and financial irregularities mentioned here. within 30 days of receiving this complaint. Failure to do so will result in the involvement of competent authorities such as the Inspector General of Societies, Government of Goa, the Institute of Chartered Accountants of India, AIFF, FIFA, Income Tax Department, Enforcement Directorate, and the appropriate Court of Law. The responsibility for any adverse consequences for the football-playing youth of the state will fall solely on the current members and office bearers of the GFA Executive Committee, including the General Secretary,” he warned.
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