Lund Municipality is halting grants to the Islamic association Masjid Lund after serious criticism regarding the organization’s finances. An external review shows extensive deficiencies in accounting—while millions that were meant for children and youth were instead raised for a future mosque building and invested in gold. Now, the association may be required to repay the funds.
The Sunni Muslim association Masjid Lund has received municipal support for youth activities in Lund since 2022. In 2024, a total of SEK 372,000 was paid out in grants, but according to the municipality, only SEK 316,000 could be accounted for as expenses.
The municipality’s investigation revealed, among other things, that the association completely lacked statutes and that it was impossible to determine how the money had been used. After that, the audit firm PWC Sweden was brought in for an external investigation.
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The investigation points to extensive flaws in accounting and uncertainties about how much money actually went to youth activities—and how much was used for other purposes within the association.
At the same time, Masjid Lund is conducting a major fundraising campaign to build a mosque. According to the association’s own website, over SEK 5.6 million has been raised toward a target of SEK 8 million.
The association’s financial statement for 2025 also shows that assets of just over SEK 2.4 million have been invested in gold as a preparation for the planned mosque construction.
“Apparently Invested in Gold”
The municipality’s head of sports, Michael Holmkvist, reacts to the arrangements.
“The money being raised is apparently partly invested in gold. And obviously that stands out, I noticed that myself when I read the report,” he told Sydsvenskan.
He also emphasizes that the municipality primarily reacts to the fact that finances have not been kept separate between grant-funded activities and other activities.
“From our perspective, the important thing is that this part of their activities must be kept financially separate from the part that receives municipal support. And that’s where they are failing today.”
In its response to Sydsvenskan, the association admitted to some shortcomings, stating that it lacked certain receipts, attendance lists, and even an auditor.
According to the municipality, it is very unusual for established associations both to lose their support and risk repayment. Michael Holmkvist says that nothing similar has occurred during his seven years at the administration.