The board of Cycling Ireland has apologised over “serious mistakes” that were made previously and led to significant governance controversy, which it told an Oireachtas committee were “unbefitting” an organisation that received public funding.
Part of the controversy relates to revelations Cycling Ireland had submitted “false quotations” to the Government in a claim for a €52,100 grant, that led the Department of Sport to suspend its access to capital funding for 12 months.
A subsequent internal audit carried out by Kosi Corporation, at the instigation of Sport Ireland, found serious governance failings and “errors and ineptitude” in the preparation of grant applications.
Representatives from both Cycling Ireland and Sport Ireland appeared before the Oireachtas committee on sport on Wednesday to answer questions of the issues facing the cycling body.
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The committee heard that the anticipated publication of a separate report by auditors BDO investigating a proposed deal between Cycling Ireland and EvoPro Racing, a professional Irish racing team, had been held up.
Tom Daly, vice-president of the Cycling Ireland board, said the delay was due to the “interventions of legal representatives” of the former president of Cycling Ireland, Liam Collins, and EvoPro Racing.
“BDO, the firm that was commissioned to produce this report, have confirmed that due to matters outside of its and Cycling Ireland’s control it is not yet able to publish its report,” Mr Daly said.
Cycling Ireland, which has some 25,000 members and is the national governing body for cycling across the island of Ireland, had previously delayed appearing before the committee as it was awaiting the BDO report being finalised.
Amid the governance turmoil the organisation’s new board had committed to a “root and branch review” of the operational structure of Cycling Ireland, Mr Daly said.
“We fully acknowledge and regret that serious mistakes were made in the past which were unbefitting of an organisation that receives public funds and fees from members,” he said.
Mr Daly said while there had been mistakes there had been “no personal gain for those involved”, who he said were motivated by a passion for the sport.
Fine Gael TD Ciarán Cannon said controversy over the eligibility for the sports grant had led to a “significant breakdown in trust”.
Mr Daly confirmed a Garda investigation had been opened into the matter, but added he believed no Cycling Ireland staff members were the subjects of those inquiries.
Dr Una May, chief executive of Sport Ireland, said the State agency was “very confident” in recent work from the organisation to improve its governance.
Addressing the committee, Dr May said the Kosi audit had highlighted issues around grants and funding, as well as ethical decision making, and organisational culture. Cycling Ireland had committed to implement all 17 recommendations from that audit by the end of September, she said.
Dr May said efforts to embrace reforms by Cycling Ireland had not been seen by the Irish Athletic Boxing Association, which Sport Ireland recently moved to partially cut funding to over prolonged governance problems.
