Football Association of Malawi (Fam) will get about K365 million (USD 500,000) as the second instalment of operational costs for 2020 from Fifa as the first step of the relief plan to assist the football fraternity impacted by the Covid-19 pandemic.
This comes after Fifa Development and Finance Committee approved to release advance funding to all 211 member associations to mitigate the financial impact of Covid-19 on football. Initially, the second instalment of operational costs was due in July but will be paid immediately.
Fam president Walter Nyamilandu, who is also Fifa Council member confirmed the development yesterday.
“This money was already budgeted for operational activities for July to December 2020 and we were expecting to receive it in July. The only difference is that it will come early and we are guaranteed of the USD 500,000. In light of the Covid-19 pandemic, Fifa has relaxed the rules of accessing the funds so that football Associations (FA’s )can cope with the current situation and easily meet their financial obligations,” Nyamilandu explained.
Nyamilandu said Fifa was still working on the Emergency Relief Fund as a bailout plan for Covid-19 and it will be announced at an appropriate time.
Fam usually receives the first instalment of operational costs from Fifa in January every year.
However, Fifa indicated that regulations will remain fully applicable and will be subject to the standard of audit and reporting process.
The World Football governing body will release USD 150million to be distributed amongst 211 member associations.
Fifa President Gianni Infantino said as part of measures, all remaining entitlements of member associations to operational costs under the Forward 2.0 Programme will be released in full for the years 2019 and 2020.
“The pandemic has caused unprecedented challenges for the entire football community and, as the world governing body, it is Fifa’s duty to be there and support the ones that are facing acute needs. This starts by providing immediate financial assistance to our member associations, many of which are experiencing severe financial distress,” Infantino said.
“This is the first step of a far-reaching financial relief plan we are developing to respond to the emergency across the world football community. Together with our stakeholders, we are assessing the losses and we are working on the most appropriate and effective tools to implement the other stages of this relief plan.”
Under normal circumstances, Fifa member associations would have only received the full amount of contribution upon fulfillment of specific criteria. Instead, Fifa is now transferring this amount as active support to help safeguard football across all member associations.