The proposed visit of Argentine football star Lionel Messi and the national team to Kerala has come under renewed scrutiny following a report raising concerns over possible money laundering and violations of the Foreign Exchange Management Act (FEMA).

The report, prepared by Sports Special Secretary N Prasanth and submitted to Chief Minister V D Satheesan, has recommended an investigation by the Enforcement Directorate (ED). The state government is currently examining the findings and is considering further steps, including placing the report before the cabinet or ordering a special investigation.

According to the report, the state government had facilitated clearance for foreign remittance of around $15 million for the proposed event. It also raised questions over the financial structure of the project, noting a gap of nearly Rs 128 crore between the estimated expenditure of Rs 210 crore and projected revenue of Rs 82 crore.

The report described the proposed event as essentially a private commercial programme that was presented as a government-backed international event, allegedly benefiting the sponsor, Reporter Broadcasting Company (RBC). It also questioned the appointment of RBC, stating that the company was selected without an open process, proper valuation of commercial rights, assessment of its financial strength or verification of its funding sources.

The findings further alleged that officials of the sports department had limited involvement in major decisions, with key matters being handled by the then sports minister and his private secretary. Former chief secretary A Jayathilak was also criticised for allegedly failing to follow government procedures in matters connected with the event.

Former sports minister V Abdurahiman has rejected the allegations and maintained that the agreement for the proposed match was between the Argentine Football Association (AFA) and the sponsor, without creating any financial liability for the state government. He also said the initiative had received approval from the sports and finance departments and that the sponsor had obtained the necessary RBI clearance for transferring funds to the AFA through a public sector bank.

Abdurahiman further maintained that the Argentine team had shown interest in playing a friendly match following an invitation from the Kerala government. He also pointed to the AFA's public announcements regarding the proposed Kerala visit.

With the government now examining the report, the proposed Messi visit has shifted from a failed sporting event to a matter involving financial and administrative scrutiny.