THE Republic's minister for transport, tourism and sport Shane Ross has told a parliament committee that the entire board of the Football Association Ireland has indicated they will step down.
"There has been intensive activity between Sport Ireland, the FAI and my department," he said.
"I watched the FAI's engagement with your committee and monitored events since then.
"Yesterday's announcement that the CEO had stepped down fell far short of expectations, while it is the case that due process is important, I have become increasingly concerned about these developments.
"Concerns remain about a financial transaction, and corporate governance, suggest that all is far from well.
"In the last few hours the FAI has written to me to say decisive action has been taken."
The FAI has been in the eye of a political storm since it emerged that former chief executive John Delaney had provided it with a bridging loan to prevent it exceeding a €1.5 million bank overdraft.
"I welcome that the FAI is engaging with Sport Ireland in a process, and that they have now indicated that the board will step down," Mr Ross added.
"I believe that an EGM (emergency general meeting) should be called before the July date, as soon as the active investigations have been concluded, to facilitate a transition to a new board by way of transparent elections.
"Given the ever growing lack of public confidence in the FAI, this move is to be welcomed and is hopefully the first step on the road to rebuilding trust in this important NGB.
"Considering the issues over which most of this board has presided, and those issues being obvious even before the various investigations have started, it is clearly time for a regime change."
Mr Ross welcomed the action of the board of Sport Ireland to suspend and withhold their funding.
"I can add that there will be no further government funding for the FAI until we see real change and reform in the association's corporate governance, and until we have credible answers," he added.
"I am pleased that the FAI will work with Mazars [consultancy firm carrying out an independent review] to overhaul the association's governance. I think it is well known that I have great difficulty with organisations conducting internal reviews and investigations, so I welcome the invitation by the FAI to Sport Ireland to input to the terms of reference of the Mazars exercise.
"I trust that the FAI will continue to liaise with Sport Ireland throughout this challenging process and in implementing any changes recommended therein.
"Irish football, as we have heard, includes a broad range of stakeholders extending far beyond the FAI's HQ at the National Sports Campus.
"On the new board it would be appropriate to include representatives of the players (both male and female), supporters, coaches, volunteers and leagues.
"Chairman, it has been abundantly clear over the past weeks that there is an immense frustration throughout grassroots soccer in Ireland.
"This is quite the crisis for the FAI, but it is also an opportunity to develop an inclusive vision for the development of soccer in Ireland," Mr Ross concluded.
Sport Ireland president John Treacey: "Sport Ireland is very concerned about FAI adherence to appropriate financial controls.
"Sport Ireland issued a formal response on April 11. As outlined, the Sport Ireland Act confers considerable authority in Sport Ireland, investing substantial amounts of public funding into sport.
"At our meeting on April 9, the board of Sport Ireland unanimously decided to withhold funding from FAI, this was not a decision we took lightly, but a last resort and used reluctantly."
Mr Treacy added: "In light of this clear acknowledgement to withhold funding, in accordance with Clause 11 of the terms and conditions of the Sport Ireland Act, we made this decision.
"We are aware that 50 per cent of youth funding had been paid to FAI already, and the next payment is due in the third quarter of this year. The board outlined that we're of the clear view that this interim period should be used by the FAI to take whatever action is required to restore funding."
"Depending on what emerges from the Mazars and Grant Thornton reviews, as per terms and conditions of grant approval, we have agreed with FAI that a full audit will be carried out – this was agreed at a meeting last night," Mr Treacy added.
"This audit will be as broad and extensive as necessary, including internal financial controls and management, and that general governance are at a sufficient standard to restore funding."
Mr Treacy confirmed that the last time funding was suspended by Sport Ireland it took nine months for it to be restored.
He said he could not confirm whether funding will be restored to the FAI within the year.
Sport Ireland have not yet identified an auditor to undertake their audit of the FAI.
Shane Ross, when asked how he will determine any investigation into the FAI is independent, said: "That is a matter I would leave to Sport Ireland, who are representing on my behalf to the FAI."
Taoiseach Leo Varadkar has said an investigation into the financial affairs of the Football Association of Ireland (FAI) needs to be conducted.
Speaking in the Dail, Mr Varadkar said the government very much shared the concerns of taxpayers and the anger of football fans over the revelations about how the FAI had been run in recent years.
"Investigations are necessary – investigations by Sport Ireland – into the accounts and finances of FAI and it also may be necessary for the ODCE to carry out investigations under company law," he said.
He added: "The objective must be to restore confidence in how the FAI is being run."
A row started between the Minister for Sport and Solidarity TD Ruth Coppinger over accusations that the minister is using the threat of taking away funding for children's football to avoid bringing in new rules for funding the FAI.
Ms Coppinger claimed Shane Ross is using it as a "scare tactic" and purposefully not answering her questions.
