Latest so far:
- Former FAI CEO John Delaney won't answer committee questions on the €100,000 loan to the FAI, citing legal advice
- FAI president Donal Conway said a short term cash flow issue arose in April 2017
- Mr Delaney issued a personal cheque for €100,000 which was cashed the next day to meet the bill from one unnamed contractor
- Mr Conway said the FAI did break the rules by not informing Sport Ireland of the loan
- FAI board not told about €100,000 loan for almost two yearsThe board of the Football Association of Ireland was not told for almost two years of the €100,000 interest-free loan from its former CEO John Delaney, it has been confirmed.
At a tense and somewhat farcical hearing of the Oireachtas Committee on Transport and Sport, TDs and Senators were told that in April 2017, an immediate cash flow issue arose which needed to be resolved “within a matter of a few hours”.
An internal three-person finance committee which included Mr Delaney discussed the fact that cheques issued by the FAI, were they to be presented for cashing, could cause the organisation to exhaust its funds, including its €1.5 million overdraft facility with Bank of Ireland.
FAI President Donal Conway confirmed to committee members that the matter of the €100,000 loan was only disclosed to the board in early March 2019 when queries from the Sunday Times about it were received.
AdvertisementMr Conway read into the record evidence relating to the €100,000 loan and confirmed that on April 25th 2017, a short term cash flow issue arose.
He said FAI board members discussed that a potential situation arose whereby there may have been insufficient funds in the body's accounts to meet cheques that had been issued.
Mr Delaney issued a personal cheque for the amount of €100,000 which was cashed the next day to meet the bill from one unnamed contractor.
Mr Delaney was repaid a short time later and it was confirmed that no documents related to the loan existed, no interest was levied or paid.
AdvertisementMr Conway said the board accepts the situation “was exceptional”.
Former FAI Chief Executive John Delaney has said he “regrets the embarrassment” caused by the granting of a €100,000 loan by him to the organisation in 2017.
Giving his opening statement after several delays at the Oireachtas Sports Committee, Mr Delaney spelt out the circumstances as to how he came to cut the cheque making clear that the FAI had all but exhausted its €1.5 overdraft with Bank of Ireland on April 25, 2017.
As a result, cheques issued by the FAI may not be fully met, and as the body only had a few hours to resolve the issue, Mr Delaney decided to issue the cheque.
He demanded that the cheque only be lodged if needed and was told by the FAI's director of finance that it was needed to meet a payment to a third-party creditor the next day, April 26, 2017.
Mr Delaney made it clear that the €100,000 payment was not made known to the FAI board for 18 months until media queries were lodged with the organisation in March 2019.
Donal Conway, FAI President, confirmed that while some members of the board were aware of the payment, the board was not formally informed until Mr Delaney made it known that queries from the Sunday Times newspaper had been received about it.
Mr Delaney told committee members that beyond his statement, on legal advice, he was not in a position to answer any further questions.
He also delivered a warning to committee members that given some of them have made highly prejudicial comments and the recent Kerins judgement, “I would ask committee respect my position I cannot answer any further questions.”
Mr Delaney said he was only able to answer questions in relation to his current role as Executive Vice President. A short time later, committee member Ruth Coppinger said they were "being gagged" because of the Kerins ruling, describing the hearing as a "frustrating process".
Giving his opening statement after several delays at the Oireachtas Sports Committee, Mr Delaney spelt out the circumstances as to how he came to cut the cheque making clear that the FAI had all but exhausted its €1.5 overdraft with Bank of Ireland on April 25, 2017.
As a result, cheques issued by the FAI may not be fully met, and as the body only had a few hours to resolve the issue, Mr Delaney decided to issue the cheque.
He demanded that the cheque only be lodged if needed and was told by the FAI's director of finance that it was needed to meet a payment to a third-party creditor the next day, April 26, 2017.
Mr Delaney made it clear that the €100,000 payment was not made known to the FAI board for 18 months until media queries were lodged with the organisation in March 2019.
Donal Conway, FAI President, confirmed that while some members of the board were aware of the payment, the board was not formally informed until Mr Delaney made it known that queries from the Sunday Times newspaper had been received about it.
Mr Delaney told committee members that beyond his statement, on legal advice he was not in a position to answer any further questions.
He also delivered a warning to committee members that given some of them have made highly prejudicial comments and the recent Kerins judgement, “I would ask committee respect my position I cannot answer any further questions.”
Mr Delaney said he was only able to answer questions in relation to his current role as Executive Vice President.
Mr Delaney said he is "truly saddened" that Sport Ireland saw fit to withdraw funding from the FAI.
Before he spoke, Committee chairman Fergus O'Dowd gave voice to the depth of frustration felt by committee members at the lateness of the arrival of Mr Delaney's statement.
The committee hearing continues.
By Daniel McConnell Political Editor Irish Examiner
