Friday 20 October 2017

Scandal-hit Rush Credit Union to be wound down

Rush Credit Union Photo: Mark Condren
Rush Credit Union Photo: Mark Condren
Charlie Weston

Charlie Weston

Troubled Rush Credit Union is to be shut down in a move that will shock the millions of people who are members of other local lenders.

Finance Minister Michael Noonan told his Cabinet colleagues yesterday the north County Dublin credit union is set to have a liquidator appointed to effect an orderly wind-down of its operations.

Central Bank officials are due to seek the permission of the High Court today to have a liquidator appointed. The credit union has been wracked by controversy since the summer when it emerged money had gone missing. It is not due to open today, as it is normally closed on a Wednesday.

It emerged this week that the credit union has such serious financial issues that it would cost millions of euro to stabilise it.

Some €1.5m has gone missing, the credit union's safe was being used to stash money from the taxman, and the car draw was rigged to benefit a senior credit union staff member. Deeds to foreign properties were discovered in the safe, with forensic accountants appointed by the Central Bank unsure who owns the properties.

Now it has emerged that moves are afoot to shut down the credit union. This is set to be a concern for more than three million people that are members of other credit unions throughout the State.

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However, there are no suggestions that other credit unions are in anything approaching the financial mess that Rush CU is in.

The Central Bank will have to apply to the High Court to have the Rush Credit Union shut down - by seeking permission to have a liquidator appointed to wind up the affairs of the credit union.

There are around 10,000 members of the north County Dublin credit union, with around €25m in savings. All savings up to €100,000 will be covered by the State's deposit guaranteed scheme.

No individual saver has more than €100,000 on the books of Rush Credit Union, according to regulatory sources.

Rush Credit Union is said by credit union and regulatory sources to be the worst credit union in the state in terms of financial irregularities.

Irish Independent

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