Cycling Ireland has admitted "false quotations" were used in applications it made for sports grants from Government funds. It added this "should not have happened" and that "a detailed procurement policy" had now been put in place.
The admission is the first time the national governing body has effectively confirmed the nature of the controversy that began in the summer of 2020, the first news of which emerged just before Christmas.
Stickybottle understands the controversy has already cost the federation two grants, which were provisionally approved in 2020 and then cancelled. Legal and related fees are also mounting due to the fall-out from the controversy.
When Cycling Ireland, or any other sporting body, is applying for grants it must compile a detailed application supported by documents showing how the funds being applied for would be used. That includes providing documents showing quotes have been sought from suppliers.
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The Irish Times came into possession of a report into the controversy – produced by the governance consultancy firm KOSI - which was commissioned by Sport Ireland.
Cycling Ireland replied to queries put to it by The Irish Times, which were published in its coverage in Monday's newspaper. The national governing body has also supplied comment to questions from stickybottle.
“Cycling Ireland can confirm – independently of any investigation – that it is a matter of fact that two false quotations were submitted to support the application for a sports capital grant,” Cycling Ireland said in reply to questions.
“There is no evidence whatsoever that this was done for personal gain. Cycling Ireland has been severely sanctioned by the department as a consequence of what occurred,” Cycling Ireland added.
It is understood that sanction involves a loss of capital fund grants for 12 months, meaning Cycling Ireland lost the ability to apply for those grants for the specified period.
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The matter first emerged publicly late last year when Cycling Ireland president Liam Collins, who had just been elected, emailed Cycling Ireland members to inform them a report may appear in The Sunday Times that weekend.
While that report did appear, the nature of the controversy was not clear as the report simply stated there were alleged “discrepancies” in grant applications by Cycling Ireland, adding the concerns had been referred to the Garda.
The non-compliance concerns arose in June, 2020, when money was applied for under the Sports Capital and Equipment grant scheme. While two grants were provisionally awarded to Cycling Ireland, they were then withdrawn. The matter was referred to An Garda Siochana and no payments were made by the Department of Sport.
The referral of the matter to gardaí by the Department does not mean a Garda investigation is underway. The referral of such an issue to the Garda is not the same as a complaint of alleged criminal wrongdoing being made. Instead, such referrals are made as a matter of procedure and in the case of the Cycling Ireland matter, there has been no investigation to date by gardaí.
Cycling Ireland reforms after controversy
Cycling Ireland has implemented a number of changes to its procedures in the wake of the controversy and its success in being awarded grants in 2022 will be based on those changes being fully rolled out.
"The board has put in place a suite of new policies and procedures including a detailed procurement policy," Cycling Ireland said in reply to queries from stickybottle, adding the policies would be kept under ongoing review.
It also noted Marcus Dowling, a respected senior counsel based in Dublin, was co-opted onto the board as an independent director in December. Cycling Ireland added Mr Dowling has "specific expertise in governance".
Cycling Ireland added: "An independent consultant is reviewing a sample of past procurement processes. This consultant will also review all procurement processes to be carried out in 2022."
However, while that review process was still ongoing, the board of Cycling Ireland had no information suggesting other irregularities had arisen, the national governing body said in reply to queries.
