Sports & Fitness

Perak FC slammed with three-point penalty for RM1 mil unpaid player salaries

Club risks further six-point deduction and fund reduction if debt unsettled by April 14, says FA of Malaysia-appointed independent body

Updated 2 years ago · Published on 01 Apr 2022 5:04PM

Perak FC slammed with three-point penalty for RM1 mil unpaid player salaries
Perak FC have until April 14 to settle their players’ unpaid salary arrears before further action are taken by the First Instance Body, an independent decision-making body appointed by the Football Association of Malaysia. – Perak FC Facebook pic, April 1, 2022

KUALA LUMPUR – Perak FC have been given an immediate three-point deduction for the 2022 Premier League after failing to pay the remaining salary arrears of players and officials of the main and reserve teams up till November 2021.

In statement by the Malaysian Football League (MFL), the decision was made by the First Instance Body (FIB), an independent decision-making body appointed by the Football Association of Malaysia (FAM).

According to FIB chairman Sheikh Mohd Nasir Sheikh Mohd Sharif, Perak FC had failed to settle the balance of the salary arrears by the date set by FIB, which was March 31, 2022.

“Perak FC management had previously agreed to settle the balance of last year’s salaries of players and officials amounting to RM934,729.42 by March 31, but they have failed to do so.

“Therefore, the FIB committee has decided to impose a three-point deduction on Perak FC,” he said in the statement.

He said that if Perak FC still fail to settle the arrears by the second deadline set on April 14, 2022, they could face a further six-point deduction in the Premier League and a reduction in funds.

If Perak FC still does not settle their salary debts before April 21, 2022, MFL will extend the case to FIB for further action.

To record the case of salary arrears of the team personnel, MFL has sent a circular letter to Perak FC on November 15, 2021, to submit a sworn statement of all payments.

On January 11, 2022, Perak FC had sent an email with the amount of salary debt up till November 2021 involving the players, officials, the Inland Revenue Board (IRB), Employees Provident Fund, and Social Security Organisation (SOCSO).

MFL then sent a letter on March 9 ordering Perak FC to settle the debts before March 31 to avoid action being taken. They subsequently sent another reminder on March 25, followed by another one on March 29.

Perak FC then sent an application to have the deadline extended on March 30, but the FIB committee had rejected the application.

This led MFL to demand for Perak FC’s financial report for the 2022 season following the club’s failure to resolve their ongoing issues.

Failing to submit the documents related to their financial position as well as the report on the payment of salary arrears, Perak FC responded to MFL by sending two reports, namely the 2022 cash flow and salary debt for January and February 2022 on March 15.

MFL responded saying the information submitted was not enough to prove that Perak FC is capable of financially surviving until the end of the 2022 season.

Meanwhile, word of potential investors who were interested in taking over Perak FC reached MFL through a letter of offer on March 19.

However, Perak FC had not sent any official details or evidence regarding the ability of the potential investors who are ready to take over Perak FC by March 22, 2022.

MFL board members had decided that if Perak FC still fail to submit officials documents before March 22, the case would be brought to the FIB for further consideration before MFL decides on the football club’s status. – The Vibes, April 1, 2022

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