FIA approves controversial statute changes amid criticism

Red Bull Racing/Red Bull Content Pool

The International Automobile Federation (FIA) approved a set of statute changes on Friday that have sparked controversy and criticism for potentially limiting the powers of the body’s audit and ethics committees. This development unfolded ahead of the organization’s gala awards ceremony, celebrating the year's sports achievements.

Concerns have been raised by significant figures in the motor racing community. David Richards, head of Motorsport UK, expressed reservations about the changes. He underscored worries regarding the increased authority granted to FIA President Mohammed Ben Sulayem and Senate President Carmelo Sanz de Barros over oversight of ethics complaints.

Echoing these concerns, Oliver Schmerold, the head of Austria's motorsport federation, commented to the BBC on the implications of reduced accountability, suggesting that the modifications represented "not good governance."

In defense, the FIA, also overseeing other competitions such as rallying and the Formula E electric series, stated that its ethics committee would maintain independence. The committee will have the authority to independently evaluate whether investigations should proceed. Moreover, the organization contended that the limitation on report distribution serves as a safeguard against continued media leaks while protecting complainants and subjects under investigation.

The amendments clarifying the audit committee’s role emphasized its function as an advisory and support entity to the Senate. "The Audit Committee retains its powers to assist and investigate if asked to do so by the president of the senate," read the official statement.

Amid these changes, the FIA also announced a positive financial outlook. Anticipating a return to profitability, the organization forecasts an operating profit of €2.2 million ($2.31 million) in 2024. This marks a significant recovery compared to a €-24.0 million operating result in 2021, making it the best result in seven years and the first positive figure since 2018.

This financial turnaround, according to President Ben Sulayem, stems from reforms in governance and finance, setting the FIA on a more sustainable economic path.

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