Sport Ireland claim that the FAI failed to inform them about the massive loan from John Delaney to the association.
The criticism of the FAI comes in a statement that will be delivered by Sport Ireland’s Chief Executive John Treacy at the Oireachtas Transport, Tourism and Sport Committee on Tuesday.
Last month, Delaney confirmed he gave the FAI a €100,000 loan to help it through what he said was a short-term cash flow problem.
The FAI then said the “bridging loan” was given in April 2017 and repaid in full to Mr Delaney in June of that year.
Sport Ireland, the statutory body with responsibility for the development of sport, is due before the Oireachtas committee to discuss governance, oversight and scrutiny.
FAI is 'urgently' working to address concerns about John Delaney bridging loan
RTE reports that Sport Ireland also asked for an explanation on why it wasn’t told at any point in 2017 about the decline in the FAI’s finances, which is a requirement of the Terms and Conditions of Grant Approval.
The statement continues: “Sport Ireland received a response from the President of the FAI, which acknowledged the loan of €100,000 to the FAI by its then Chief Executive.
“However, the contents of the FAI letter did not sufficiently explain the circumstances of this loan and its repayment, nor fully address the matter of compliance with Sport Ireland’s Terms and Conditions of Grant Approval.”
On Monday 25 March, Sport Ireland wrote to the FAI President again seeking further clarification and more details on the circumstances of this loan.
They also wanted to ensure that all State funding given to the FAI had been spent for intended purposes and in line with approved submissions.
No reply to the second letter has been received from the FAI.
The statement adds: “Following the prior release of the FAI’s statement on the senior management structure and on March 25th, Sport Ireland received a letter from the new FAI interim Chief Executive, Rea Walshe, outlining structural changes within the organisation on the back of a review of its senior management structure.
“Notwithstanding a media release from the FAI on Saturday, 23rd March, the letter of 25th March was the first occasion on which Sport Ireland was formally notified of the review of the organisation’s senior management structure, and the creation of the new role of Executive Vice-President.
“Sport Ireland was not consulted on the commissioning or the preparation of the report. Sport Ireland has not received a copy of the report.”
