F1 News: FIA’s $1.5M Fund and Controversial Rule Changes Raise Red Flags

Alex Harrington | Dec 3, 2024

May 8, 2022; Miami Gardens, Florida, USA; Dan Marino and FIA president Mohammed Ben Sulayem applaud during the award ceremony following the Miami Grand Prix at Miami International Autodrome. Mandatory Credit: John David Mercer-Imagn Images / John David Mercer-Imagn Images

The FIA, the powerhouse overseeing international motorsport, is at the center of a brewing storm regarding its proposed rule changes and the creation of a controversial $1.5 million fund, via the BBC's Andrew Benson. These developments have sparked widespread concern and criticism, threatening the stability of governance and ethics within the organization.

The proposed amendments aim to shift the functions of audit and ethics committees, centralizing oversight under FIA President Mohammed Ben Sulayem and Senate President, thus potentially limiting independent accountability.

The backdrop to these proposals includes a tumultuous year that's included various investigations and allegations targeting Ben Sulayem. Among these concerns is financial scrutiny linked to his private office and the founding of the so-called "president's fund." This fund, allegedly designed to support FIA member clubs that back Ben Sulayem, has faced severe criticism for potential misuse, specifically as a tool to garner election support. Additionally, allegations of interference in Grand Prix races have cast further shadows, although such charges were dismissed earlier this year.

Personnel changes within the FIA further illuminate the potential conflict. Notably, former CEO Natalie Robyn's departure followed her vocal criticism of governance, particularly the financial practices within the president's office. Reinforcing this, the removal of audit committee members Bertrand Badré and Tom Purves, alongside compliance officer Paolo Basarri, has raised eyebrows. These removals suggest an undermining of dissent and the erosion of independent financial oversight.

The proposed rule changes intend to curtail the audit committee's investigative powers unless initiated by the senate president. Moreover, the ability to appoint the head of the ethics committee would be transferred to the FIA president. These changes are anticipated to diminish the Senate's role in overseeing ethical operations, excluding them from compulsory ethics reporting. These changes have sparked fears of compromised governance, with critics arguing that such measures will weaken the organization's capacity to uncover and address unethical behavior.

A significant element of concern has been the establishment of the $1.5 million "President's development fund." Critics argue this fund's distribution could skew voting during Ben Sulayem's re-election campaign. Badré and Purves’ questioning of this fund led to their abrupt removal, allegedly to silence opposition. This move has sparked further debate about transparency and influence within the FIA's governance structures. Figures such as Prince Faisal Al Hussein, Carlos Slim Domit, and Akio Toyoda, who are part of the FIA Senate, are witnessing their oversight roles curtailed by such governance proposals.

Critical voices within the motorsport world, including the Grand Prix Drivers Association (GPDA), have expressed discontent regarding these controversies. Their calls for transparency extend to the handling of financial fines and the unclear allocation processes, which they argue tarnish the F1's image. Such criticisms are echoed by drivers like George Russell, who believe that inconsistent governance practices impact the sport's integrity and stability.

With these proposed changes set for a vote on December 13 at the FIA general assembly, the implications of such changes are vast. If implemented, they could significantly alter the checks and balances within the FIA's leadership structure, impacting its future governance. The outcome of this assembly will be critical, marking a pivotal moment in defining the authority and transparency of FIA leadership.