General Accounting Office of the Government of Iran submitted its final report after a six monthly regular audit on the activities of the government ministries. This report included the auditing of both Persepolis and Esteghlal clubs as part of government properties. The eagerly awaited audit report on the Tehran clubs takes prominence after the parliament and public outcry created following the public exposure of players and coaches contracts with these two clubs. The astronomical figures that the clubs were paying their staff have shocked the nation that has suffered immense financial difficulties due to economic sanctions. Members of parliaments accused the two clubs of corruption and wastage of public funds while fingers were also pointed at some of the Ministry of Youth & Sport personnel accused of collusion with the management of the two clubs to deceive the public.

The audit report accuses both clubs of financial irregularities, shoddy dealings , unauthorized expenditure , payments to unknown bank accounts for unspecified services , lack of documentation on several large payments ,  violation of the state laws ,   accounting & bookkeeping practices that does not meet the public accounts standards , creating shadow accounts illegally depositing funds from club revenues, and several other minor violations.

 The extensive report which covered the activities of many ministries, including the Ministry of Youth and Sport, as the responsible ministry for both of the government owned sport clubs Esteghlal & Persepolis. The ministry has ordered these two clubs to generate their own revenue instead of depending on government handout and claiming public money at the time when the whole government is exercising belt-tightening policies.

 The damning report cast a shadow on the activities of both clubs that have been for years under poor authority’s oversight resulting in huge financial difficulties. Uncontrolled or unaccountable expenditures left both club in critical debt situation exceeding their ability to pay the creditors or balance the books in the forthcoming years. It is difficult to see how they can survive without a bail-out by the government.

The report included accusation that some of the clubs revenues from commercial activities like advertising and merchandise , were being deposited to unauthorized bank accounts not belonging to the official club bank account(s) on records.

The GAO was also critical about the fact that of those millions of public funds that two clubs have siphoned, little or none was channeled towards infrastructure, building facilities such as football pitches for the younger generation to utilize.  

This is not the first time that GAO has produced such critical reports. It is not clear if any action , will be taken against the culprits  apart from the customary changing of the guards  (chairmen and board members) of both clubs, which has already been carried out with the exit of previous chairmen of Persepolis and Esteghlal,  preempting the GAO report.

All bank accounts belonging to Persepolis Club has been suspended by a court order as a result of creditors’ claims and long over-due nonpayment of various bills including tax due by the government itself.