Tuesday 27 September 2016

Suspension period for manager of fraud-hit Credit Union extended by High Court

Aodhan O Faolain

Published 09/09/2016 | 14:24

Anne Butterly
Anne Butterly

The High Court has extended the manager of a Co Dublin Credit Union's suspension from holding a management position in any financial-services firm by an additional three months.

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The order was made in respect of Anne Butterly who was temporarily suspended from her position at Rush Credit Union by the Central Bank in June.

The move to suspend Ms Butterly arose after investigations were launched into alleged irregularities at the credit union. It is thought that more than €1m could be missing. It is not known who is responsible for any alleged wrongdoing.

At Friday's sitting of the court, following an application by Nuala Butler SC for the Central Bank, Ms Justice Marie Baker agreed there were "sufficient reasons" to extend Ms Butterly's period of suspension by a further three months.

In her ruling the Judge said that the concerns that gave rise to the Central Bank's decision to open an investigation and suspend Ms Butterly were still present.

Additional concerns had also been raised during the course of the investigation which is on going and being carried out with "due diligence and skill," the Judge noted.

In her submission to the court Counsel said the board of Rush Credit Union suspended Ms Butterly in March.

In June, the Central Bank, which regulates financial institutions including credit unions, also took the decision to suspended Ms Butterly from acting in any management role in a financial institution under its fitness and probity regulations.

Counsel said that the extension was necessary while its investigation remains in being. The original suspension was due to expire on September 18th counsel said.

The court heard that Ms Butterly was not represented in court, and was in hospital following a serious accident.

Three separate investigations, by the Central Bank, the Credit Union itself and gardaí, are being carried out into the suspected fraud. The credit union, which also covers the village of Lusk, has 12,000 members.

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