Garda fraud bureau to send FAI probe to corporate watchdog
THE Garda fraud bureau is expected to refer the report on the financial affairs on the Football Association of Ireland to the corporate watchdog.
The KOSI Corporation report was sent to gardai a fortnight ago by Sports Ireland, because of the “sheer volume” of concerning issues including “five to six” that are understood to be particularly serious.
The Garda National Economic Crime Bureau spent the past two weeks examining it for evidence of criminality. Detectives found that many of the issues raised in the KOSI report are already being investigated by the corporate law enforcers and that they should take the on the investigation.
The Office for the Director of Corporate Enforcement (ODCE) has been “investigating the FAI for months now” and is aware of most if not all of the issues raised by the KOSI Corporation report, an informed source said.
“There is nothing new in the report that was not already being investigated by the ODCE for the past six months. Gardai are of the view that it will be dealt with by the ODCE. Unless something new emerges, the investigation is likely to remain with them.”
The decision does not mean that the FAI has escaped the scrutiny of the Garda fraud detectives. The ODCE has the powers to launch criminal investigations and a number of trained fraud detectives seconded from the Garda National Economic Crime Bureau are already involved in the FAI probe.
The fraud bureau is understood to have conveyed its assessment to Garda headquarters.
While a final decision is awaited, it is likely that the Garda’s fraud bureau will have no further involvement unless further issues arise. The Criminal Assets Bureau is not involved in any financial assessment or investigation into the FAI, a source said.
The ODCE has been investigating the FAI since last April, when the controversy erupted over the €100,000 cheque John Delaney wrote to the footballing body, leading to the unravelling of its financial affairs.
The FAI published its annual accounts for 2018 last Friday week that suggest that the organisation is in critical financial trouble. The footballing body has liabilities of €55m.
Auditor Deloitte said it was “unable to obtain sufficient audit evidence to support the assumption that the company will continue as a going concern”.
The Minister for Sport, Shane Ross, has said the FAI will receive no more funding from the State until an independent chair and board members are appointed.
On Friday, the FAI requested an “urgent meeting” with
Shane Ross and junior sports minister, Brendan Griffin, at which the organisation’s future financial viability is expected to be discussed. The meeting is due to take place tomorrow.
A statement from the Department of Transport, Tourism and Sport expressed disappointment that the FAI has yet to appoint four independent directors to its board with candidates identified by recruitment firm Amrop taking time to consider their options.
“This meeting was sought by the FAI to discuss the pressing challenges facing the organisation at this critical time,” read the statement.
“The ministers’ preference was that the meeting would include the independent chair and new independent directors. It is disappointing that those appointments have still not been made.
“Given the stated urgency, a meeting has been arranged with the FAI directors elected at the July 2019 AGM.”
The FAI also revised its accounts for 2016 and 2017 to take into account payments to its former chief, John Delaney, that should have been recorded as benefits in kind in the company accounts.
A profit of €2.2m in 2016 was revised down to €66,000, while a profit of €2.7m in 2017 became a loss of €2.8m.
Mr Delaney agreed a deal in 2014 that he would receive €3m in loyalty payments that was not approved by the entire board. On gardening leave since last April, Mr Delaney received a severance payment of €462,000 when he left in September — a pension contribution of €370,000 and €90,000 in lieu of notice.
Donal Conway, president of the FAI and a longstanding board member, has announced that he will be stepping down. He acknowledged that the board “did not do its job well”.
The last remaining member of the board from John Delaney’s time, John Early, resigned his position last week. In a statement he said he was unaware of Mr Delaney’s enhanced contract and described the “collective failure” of the organisation as “catastrophic”.