A brochure handed over by the sponsor, rather than a contract, was all that the previous LDF government had to claim that Argentina had agreed to play an exhibition match in Kerala, an inquiry report has revealed.

The government interpreted the brochure, which merely outlined the Argentine Football Association's (AFA) commercial programmes, as the Argentine team's consent to visit Kerala. Even though no agreement existed with the AFA, the state government subsequently wrote to the Centre, giving the impression that Argentina had agreed to play the exhibition match in Kerala.

Based on that letter, the sponsor, Reporter Broadcasting Company, secured Foreign Exchange Management Act (FEMA) clearance to remit ₹126 crore to a US-based agency, according to the report by Sports Department special secretary N Prasanth. However, the report found no records establishing that the sponsor paid Argentina or that the Argentine association received any money.

The proposed remittance was to be routed through TourProdEnter LLC, a Florida-based company facing a tax-evasion investigation in the US. Despite this, the government conducted no inquiry into the company, nor did it attempt to verify whether the money had actually been transferred.

The report also flagged a series of irregularities at the government level, noting that several decisions were taken outside prescribed procedures and identifying the then sports minister V Abdurahiman as having led these moves.

With the preliminary findings pointing to the possibility of a large-scale money-laundering operation, the government is now preparing to order a detailed investigation.