The FIA General Assembly in Kigali, Rwanda, on Friday approved a series of controversial governance changes that will significantly alter the authority of the motorsport governing body’s ethics and audit committees.
The changes – spearheaded by FIA president Mohammed Ben Sulayem – focus on reshaping the responsibilities and autonomy of the compliance officer, ethics committee, and audit committee.
While the FIA leadership argues that these reforms will enhance efficiency and safeguard confidentiality, critics are concerned about the potential erosion of oversight and independence within the governing body.
Under the new rules, the compliance officer’s responsibilities will now fall under the direct purview of the FIA President and the President of its Senate.
The FIA justified its efforts to reform its operations and address internal challenges, including leaks to the media.
“First, to preserve and enhance the independence of the ethics committee by reducing the involvement of the FIA administration in its operation,” the institution stated in its press release.
“The ethics committee previously only reported to the president, it now reports to both the president and the president of the senate.
“The committee now has the powers to independently assess whether or not to launch an investigation."
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However, a significant point of contention is the restriction on the distribution of ethics committee reports. These will now be shared on a limited basis, with the stated goal of protecting confidentiality and addressing leaks.
“Second, as a result of continuous leaks to the media of confidential material, including ethics committee reports, it is now proposed that the distribution of any ethics committee report will be limited,” the FIA clarified.
“This does not prevent either the president or the president of the senate from involving senate members or other members of the FIA or its staff in discussing or implementing any recommendations from the ethics committee.
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“Finally, ethics committee reports can often contain material of a confidential nature including criminal or safeguarding issues.
“It was therefore necessary to limit the automatic sharing of this information with multiple members and FIA staff.
“Limiting the distribution of the report will also protect the complainant and individual subject to the investigation.”
Regarding the FIA’s audit committee, which previously operated as an independent investigative body, it will now function solely as an advisory body to the Senate.
Its ability to investigate financial issues independently has been curtailed and will only be exercised “if asked to do so by the president of the Senate.”
The FIA elaborated on this adjustment.
“The aim of the changes is to clarify that the audit committee is an advisory body to the senate and that it shall operate within the limits of the FIA statutes.
“The proposed amendments simply clarify that the audit committee is a support body for the senate and that the internal regulations of the audit committee will, in future, be approved by the senate.
“The audit committee retains its powers to assist and investigate if asked to do so by the president of the senate.”
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While the FIA argues that the changes are necessary for operational improvement, critics argue that these moves weaken internal oversight and consolidate power within the top echelons of the organization – namely the FIA president and his key ally, the president of the Senate.
Restricting the audit committee’s autonomy and limiting the ethics committee’s ability to disseminate reports have raised concerns about transparency and accountability.
Despite the governance controversy, the FIA shared positive news about its financial recovery. The federation forecasts an operating surplus of €2.2 million in 2024, a dramatic turnaround from a €24 million deficit in 2021.
FIA President Mohammed Ben Sulayem highlighted these achievements during the General Assembly, crediting the improvements to cost-containment measures and revenue-generating strategies.
“This achievement is a result of our commitment to reform the organization in the areas of governance and finance,” said Ben Sulayem.
“The new FIA leadership inherited a financial situation which was not sustainable in 2022. We have worked hard to reduce a sizeable deficit and have stabilized the overall financial health of the federation.
“We have implemented cost-containment measures and revenue-generating strategies to put the FIA on a more sustainable financial footing to meet our primary purpose of supporting our member clubs.”
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