Sport body admits using Covid cash to cut debt
THE FAI has admitted it broke Covid support funding rules by using almost €1million it received to pay off debts.
Senior executives from the organisation appeared before the Oireachtas Public Accounts Committee (PAC) yesterday – months after State funding to the sporting body was suspended amid questions around governance.
The FAI received €33.7million from the State during the pandemic to offset losses of turnover caused by the spread of Covid-19, with sporting events grinding to a halt.
FAI finance director Dan McCormack told the Committee that in ‘one instance’ the organisation used the Covid support funding to pay down debt. ‘For clarity there was one instance where Sport Ireland funding was used against capital funding debt repayments but isolated to… just under €1million,’ he said.
The revelation was made after questioning from Fianna Fáil TD for Cork East James O’Connor, who queried how the FAI had managed to reduce its debt from €63.5million to €43million since 2020. Mr O’Connor read out the criteria surrounding the pandemic support payments, which stated that ‘funding is targeted at issues arising from Covid-19 – pre-existing debts/ deficits will not be covered’.
Dr Una May, CEO of Sport Ireland, which administered the payment, said they had received assurances from auditors KOSI that ‘the scheme was addressed and appropriately enforced’. Sport Ireland did not reply to the Irish
Daily Mail when asked if it would be taking any action in light of the latest disclosure.
The CEO of the FAI, Jonathan Hill, told Fianna Fáil TD for Dublin North-West Paul McAuliffe that the reduction in the association’s debt arose ‘through scheduled and unscheduled payments’, with funding from Europe’s football governing body, Uefa, transferred directly to Bank of Ireland to reduce debt.
Mr Hill told the committee there would be ‘four hard and difficult years up to 2028’, when the country is co-hosting soccer’s European Championships, which is expected to deliver financial gains.
Mr Hill refused to answer Mr O’Connor when asked if the FAI would have been able to repay loans if it had not received pandemic support funding, branding it a hypothetical question.