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Formula One Report Prompts Call For Investigation Into Payments To Syria

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A senior politician has called for an investigation into Formula One after a report revealed that money from the racing series is being channeled to an organization in Syria that arranges events sponsored by President Bashar al-Assad and used as propaganda by his tourism minister, who has sanctions against him.

An investigation by this author and Steve Scott, sports editor of British television programme ITV News, was broadcast yesterday and revealed that F1’s regulator the Fédération Internationale de l’Autmobile (FIA) has given grants to the Syrian Automobile Club (SAC) in each of the past three years despite war raging in the country. Over the past six years the fighting has left more than 300,000 people dead and led to 13.5 million Syrians requiring humanitarian assistance according to data from the United Nations (UN).

The funding received by the SAC comes from the annual fees paid to the FIA by F1’s teams, drivers and the series itself which was bought for $8 billion in January by Liberty Media Corporation and is now listed on the Nasdaq with the ticker FWONK.

Neither Liberty, the teams, drivers nor F1 itself played a part in the decision to send money to Syria which was used to buy, amongst other things, an ambulance, helmets, overalls and timing equipment. It helped the SAC host a range of events, including rallies and drift races where drivers deliberately slide cars around corners on a twisting track.

The broadcast on ITV News revealed that the races are used to give the impression that Syrians are unaffected by the war which has devastated their country. This delusional propaganda comes from Assad’s Minister of Tourism Bishr Yazigi who attends the races and is subject to sanctions by the European Union because he “shares responsibility for the regime’s violent repression against the civilian population.”

According to state-run Syrian Arab News Agency (SANA), in 2014 a rallycross championship on a dirt track in the Damascus countryside was organized by the SAC in cooperation with Syria’s Ministry of Tourism. The following year SANA reported that the Ministry of Tourism and the SAC joined forces again to organize Syria’s first drift championship. SANA claimed that the event was held at a track which had been destroyed by terrorists and rebuilt by the SAC.

Yazigi attended the event and, according to SANA, he said that it “reflects the strong will of the Syrians and their ability to be renewable and to continue their normal life.” He added that “the Ministry of Tourism supports and encourages everything that could deliver a true image about the Syrians who are still practising their works, activities and hobbies despite of the fierce war launched against them by the enemies of humanity.”

Messages on Yazigi’s social media channels and the website for Syria’s Ministry of Tourism reveal that as recently as July last year it sponsored SAC events. Writing on Facebook, Yazigi announced: “Sponsored by Syrian ministry of tourism, Syrian Automobile Club (SAC) organizes the eleventh Championship for speed race in Ma’arat Sednaya in Damascus countryside, with the participation of more than 30 contestants.”

The ITV News broadcast showed the FIA and Syrian flags flying alongside each other there and Yazigi added that the “event reflects the great will of Syrian youth for the continuity of life and for resurrection and new birth.”

Remarkably, at the same time that the racing was taking place in Sednaya, thousands of people were being slaughtered just moments away according to Amnesty International. In February it claimed that as many as 13,000 people had been killed in a jail there over a five-year campaign of torture under Assad’s regime. They estimated that up to 50 people were being killed each week on average after confessions were made under torture with trials lasting only minutes.

Unsurprisingly F1 followers took to social media to voice their concerns with the general sentiment being one of great surprise. “Holy sh*t. Formula One #F1 funds reported to support the dictator in Syria” said Reuters' auto racing writer Lewis Franck on Twitter. “No words, just read and shared on our website. Unbelievable,” added the @MotoriNoLimits account. Dominic Thomas said “Of all the dumb things that is #F1 the @fia funding motorsport in #Syria during a civil war has got to be one of the worst @itvnews” whilst another fan, Dima Moussa, added “This is shameful for Formula One, providing money to an organization linked w/the #Assad regime. #Syria”.

A different view came from Mark McArdle, the chief technology officer for cyber security firm eSentire who runs the ‘Fake Charlie Whiting’ Twitter account which is named after the FIA’s race director. He said “I guess Syrian kids karting and having ambulances at the circuit doesn’t bother me. Like if Red Cross/Crescent gave for a hospital.” Giving further explanation in another Tweet he said “If the Red Cross/Crescent built a hospital in Syria for children, and Assad used it for propaganda would you condemn the Red Cross/Crescent?” He added “Show what laws or sanctions were violated or that the funds were misused and I’ll join your side. Kids were helped. Karting gear.”

The difference of course is that although racing fans and armchair critics may see motorsport as the be-all-and-end-all, it is actually irrelevant in the grand scheme of things and certainly doesn’t play as crucial a role in rebuilding a country as a hospital. So even if a hospital, which was built by a benevolent body, was being used as propaganda by in a war zone it would still need to be funded whereas motorsport does not.

The risk that motorsport could be used as propaganda by in a war zone obviously outweighs the benefit that could be gained from it. This is especially true when it is public knowledge that it is being used as propaganda by a dictatorship with sanctions against it and the organization receiving the money arranges events that are sponsored by that dictatorship. Despite this being public knowledge the FIA has continued to pay the SAC and it has fuelled calls for an investigation.

“Syria is a country where there have been terrible abuses of people’s rights, most fundamentally their right to life; where starvation has been used as a weapon of war,” said Alison McGovern, the co-chair of Friends of Syria, a grouping in the UK parliament that is composed of politicians from all political parties.

“It’s not a place where you would think they ought to be hosting sporting events and I think that fans of Formula One will wonder what on earth is going on in the sport that they love that just want to watch on telly or turn up and enjoy. That money is being put into a country that we have all seen on our TV screens has been torn apart by war and conflict since 2011.

“I cannot imagine how anyone would take the decision to put money there for sporting activities of any kind. Personally I would like for there to be an investigation into this. Whether that’s for Britain, perhaps through the Culture, Media and Sport Select Committee, in parliament or through other means. I would welcome our parliament and government taking a very serious look at this issue.

“They are going to have to explain what’s happened here and if they have broken sanctions then absolutely it’s a very serious matter and I would expect them to hold their hands up and seriously work to make sure this can never happen again.”

As Forbes has reported, the Culture, Media and Sport Select Committee is a powerful body which has dug deep into everything from private equity to phone hacking. There isn’t a way to avoid attendance when it is requested regardless of how powerful or wealthy the individuals are.

The Murdochs found this out in 2012 when they were summoned to discuss phone hacking and although they initially resisted in the end they gave in. Rupert described it as “the most humble day of my life” and was famously hit by a pie-throwing activist there before his ex-wife Wendi Deng rushed to his rescue.

The Select Committee’s chairman Damian Collins already has his eye on F1. Earlier this year he wrote to David Green, the Director of Britain’s Serious Fraud Office (SFO), to ask him to look into transactions between F1 and the FIA.

In April ITV News revealed that Liberty’s subsidiary Formula One World Championship (FOWC) paid the FIA $5 million in 2013 in recognition of it entering into a new governance contract, called the Concorde Agreement. The annual regulatory fee that the FIA receives from FOWC also increased by $13.5 million to $25 million under the contract whilst fees from teams and drivers were boosted by a combined $6 million. It gave the FIA a total gain of $24.5 million and, sure enough, according to its accounts for 2013, revenue increased by $24.7 million leaving a net profit of $16 million.

The Concorde Agreement also granted the FIA a 1% stake in F1’s parent company Delta Topco for the bargain price of $460,000. The FIA’s approval was needed for Liberty’s takeover of the company to get the green light and the FIA made a $79.5 million profit by cashing in its 1% stake.

British newspaper the Daily Mail recently revealed that Mr Green has promised that the SFO will carry out a “thorough examination” of these transactions. Mr Collins subsequently told another British newspaper City A.M. that if the SFO doesn’t launch a full-blown investigation he is ready to bring F1 and the FIA before the Select Committee.

“If we reach a point where the SFO decide not to launch a full investigation, then the committee could look at it as well,” he told City A.M. reporter Oliver Gill. The revelations about the payments to the SAC in Syria are now likely to accelerate this process as they were made from the money received by the FIA under the Concorde Agreement which Mr Collins has already raised concerns about.

The SAC is one of 245 motoring and motor sport clubs which are members of the FIA. The latter are responsible for the governance of all major forms of motor sports in the countries they cover. They wield power because one motor sport club in each country votes at the FIA’s annual general meeting so small nations have the same say as far larger ones.

Each motor sport member club is known as an Autorité Sportive Nationale (ASN), meaning National Sporting Authority. Decisions put to them include approval of the FIA’s budget and the election of its president with the next opportunity for change coming later this year when current incumbent Jean Todt’s term comes to an end.

According to documents from the FIA, in 2014 it used the increased income from the Concorde Agreement to launch a Sport Grant Programme. The FIA described it as “a new source of funding for National Sporting Authorities” and added that “the Fund is dedicated to developing motor sport and helping to strengthen ASNs.” Applications are open to all FIA clubs and the SAC has taken full advantage of this.

FIA documents state that the purpose of the first grant to Syria was to “acquire a fully functioning intensive care unit ambulance to be available for its sporting events, as well as the future rescue training programmes that the organisation would be involved in.” They add that the project “involved repairing and painting the vehicle, equipping it with all necessary medical kit and appointing and training the six drivers, paramedics and doctors – two of each – that would be needed to safely and correctly operate the vehicle at motor sport events.”

The second grant was used to buy new equipment for rally drivers including helmets, overalls and seatbelts. The FIA documents state that “the aim of the programme would be to encourage more drivers and co-drivers to participate in safe rallying.”

The most recent grant was for the “purchase of timing equipment and karts and associated officials training and re-launch of karting races.” The FIA documents add that this involves the organisation of two or three races each featuring 15 drivers. It isn’t clear how much money was paid but the maximum amount available for each grant is $60,000 (€50,000) so the SAC could have been granted as much as $180,000.

Neither the SAC nor its president Walid Shaaban are subject to sanctions and there is no suggestion that the projects which receive funding are illegitimate or that the application process is improper. Indeed, the FIA documents explain the hoops that applicants have to jump through.”

An FIA spokesperson told ITV: “The grants provided to the Syrian Automobile Club are part of the FIA Grant Programme which has benefited over 101 countries and have helped ASNs to develop and improve safety standards.

“The current sanctions in place against Syria have been closely examined and the FIA does not believe that in paying these grants to the Syrian Automobile Club, any sanctions have been broken. They covered for example the cost of buying an intensive care unit ambulance and safety equipment for rally drivers. The FIA is committed to deal with its members in a non-discriminatory, non-political manner, as laid down in its statutes.

“The FIA is provided with interim and completion reports to ensure that its grants are spent in accordance with their original purposes. These include invoices related to the project which are sent to the FIA for assessment. All proper reports have been provided and invoices for equipment acquired.

The spokesperson added that: “All FIA grants are in keeping with the role of International Sports Federations to promote peace through sport and follows the advice from the UN Office on Sport for Development and Peace.

“The FIA aims to promote values such as teamwork, fairness, discipline and respect for the opponent which can be harnessed in the advancement of social cohesion and peaceful coexistence.

The Syrian Automobile Club has worked very hard to keep motorsport going in this war-ravaged country and we look forward to seeing motorsport in the region helping development and peace through sport.” So far at least it doesn’t seem to be working.

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